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Total SA (NYSE:TOT)
Beneish M-Score
-3.05 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Total SA has a M-score of -3.03 suggests that the company is not a manipulator.

TOT' s 10-Year Beneish M-Score Range
Min: -3.24   Max: -2.16
Current: -3.05

-3.24
-2.16

During the past 13 years, the highest Beneish M-Score of Total SA was -2.16. The lowest was -3.24. And the median was -2.70.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Total SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8699+0.528 * 1.0421+0.404 * 0.9658+0.892 * 0.9749+0.115 * 1.1417
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9973+4.679 * -0.0899-0.327 * 1.041
=-3.03

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $21,698 Mil.
Revenue was 56207 + 54855 + 58767 + 56712.591 = $226,542 Mil.
Gross Profit was 15836 + 16523 + 16775 + 17083.406 = $66,217 Mil.
Total Current Assets was $89,187 Mil.
Total Assets was $248,770 Mil.
Property, Plant and Equipment(Net PPE) was $108,468 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,900 Mil.
Selling, General & Admin. Expense(SGA) was $29,054 Mil.
Total Current Liabilities was $64,554 Mil.
Long-Term Debt was $39,433 Mil.
Net Income was 3104 + 3335 + 2234 + 3725.694 = $12,399 Mil.
Non Operating Income was 889 + 1419 + 707 + 2161.739 = $5,177 Mil.
Cash Flow from Operations was 5277 + 5338 + 9578 + 9383.729 = $29,577 Mil.
Accounts Receivable was $25,587 Mil.
Revenue was 55506 + 58020 + 60133.044 + 58720.465 = $232,380 Mil.
Gross Profit was 15875 + 17701 + 18005.925 + 19199.484 = $70,781 Mil.
Total Current Assets was $81,523 Mil.
Total Assets was $222,179 Mil.
Property, Plant and Equipment(Net PPE) was $93,387 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,916 Mil.
Selling, General & Admin. Expense(SGA) was $29,885 Mil.
Total Current Liabilities was $59,656 Mil.
Long-Term Debt was $29,557 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(21698 / 226541.591) / (25587 / 232379.509)
=0.09577932 / 0.11010868
=0.8699

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(16523 / 232379.509) / (15836 / 226541.591)
=0.30459402 / 0.29229691
=1.0421

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (89187 + 108468) / 248770) / (1 - (81523 + 93387) / 222179)
=0.20547092 / 0.21275188
=0.9658

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=226541.591 / 232379.509
=0.9749

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(13916.054 / (13916.054 + 93387)) / (13900.249 / (13900.249 + 108468))
=0.12968926 / 0.11359359
=1.1417

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(29054.459 / 226541.591) / (29884.729 / 232379.509)
=0.12825221 / 0.12860312
=0.9973

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((39433 + 64554) / 248770) / ((29557 + 59656) / 222179)
=0.41800458 / 0.4015366
=1.041

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(12398.694 - 5176.739 - 29576.729) / 248770
=-0.0899

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Total SA has a M-score of -3.03 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Total SA Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.13880.78241.31360.77861.38760.69490.95370.87560.9457
GMI 1.03071.0781.02491.16490.83931.08811.06511.03851.034
AQI 1.00131.01050.9891.0070.9751.09740.98180.92361.0446
SGI 1.07291.26411.13911.11880.71991.16271.15541.11690.9832
DEPI 1.31391.01550.97041.06060.97670.8421.20510.8991.1204
SGAI 0.83321.00440.86440.93611.39140.82170.87241.05171.0109
LVGI 1.04551.01890.9820.95930.98711.00760.99620.98420.9671
TATA -0.0327-0.0624-0.0553-0.0828-0.0435-0.0724-0.0649-0.086-0.089
M-score -2.37-2.70-2.29-2.84-2.74-2.86-2.61-2.92-2.90

Total SA Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.94470.88810.99340.89020.89380.9820.92760.95730.85690.8699
GMI 1.09291.0751.03461.03781.02110.99361.03791.03461.02931.0421
AQI 1.01331.05220.99980.92360.98030.98871.03051.0440.98070.9658
SGI 1.15511.0661.03561.07221.03521.04081.02110.96330.96790.9749
DEPI 1.11621.0881.00260.92840.88320.91651.04021.13721.17651.1417
SGAI 0.91790.97381.00021.05141.09841.06241.06441.0120.99920.9973
LVGI 0.96350.92820.96980.98420.980.95670.95490.96620.97751.041
TATA -0.0626-0.0731-0.0626-0.0832-0.0784-0.0631-0.0776-0.0853-0.0901-0.0899
M-score -2.59-2.77-2.72-2.93-2.93-2.77-2.85-2.89-3.03-3.03
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