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Exxon Mobil Corporation (NYSE:XOM)
Beneish M-Score
-2.85 (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.

Exxon Mobil Corporation has a M-score of -2.85 suggests that the company is not a manipulator.

XOM' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -1.61
Current: -2.85

-3.19
-1.61

During the past 13 years, the highest Beneish M-Score of Exxon Mobil Corporation was -1.61. The lowest was -3.19. And the median was -2.75.


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 Exxon Mobil Corporation 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 * 0.9018+0.528 * 0.975+0.404 * 0.9733+0.892 * 0.8546+0.115 * 1.006
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1055+4.679 * -0.0281-0.327 * 0.944
=-2.85

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $25,031 Mil.
Revenue was 67618 + 86029 + 107490 + 111647 = $372,784 Mil.
Gross Profit was 20660 + 31106 + 37111 + 38520 = $127,397 Mil.
Total Current Assets was $50,658 Mil.
Total Assets was $342,961 Mil.
Property, Plant and Equipment(Net PPE) was $249,497 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,405 Mil.
Selling, General & Admin. Expense(SGA) was $12,179 Mil.
Total Current Liabilities was $55,933 Mil.
Long-Term Debt was $19,494 Mil.
Net Income was 4940 + 6570 + 8070 + 8780 = $28,360 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 7998 + 7415 + 12396 + 10202 = $38,011 Mil.
Accounts Receivable was $32,480 Mil.
Revenue was 106325 + 110860 + 112372 + 106666 = $436,223 Mil.
Gross Profit was 30955 + 39123 + 38569 + 36710 = $145,357 Mil.
Total Current Assets was $61,864 Mil.
Total Assets was $353,033 Mil.
Property, Plant and Equipment(Net PPE) was $245,897 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,264 Mil.
Selling, General & Admin. Expense(SGA) was $12,891 Mil.
Total Current Liabilities was $70,108 Mil.
Long-Term Debt was $12,144 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)
=(25031 / 372784) / (32480 / 436223)
=0.06714612 / 0.07445733
=0.9018

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)
=(31106 / 436223) / (20660 / 372784)
=0.33321718 / 0.34174482
=0.975

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 - (50658 + 249497) / 342961) / (1 - (61864 + 245897) / 353033)
=0.12481303 / 0.1282373
=0.9733

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
=372784 / 436223
=0.8546

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))
=(17264 / (17264 + 245897)) / (17405 / (17405 + 249497))
=0.06560243 / 0.0652112
=1.006

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)
=(12179 / 372784) / (12891 / 436223)
=0.03267039 / 0.0295514
=1.1055

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)
=((19494 + 55933) / 342961) / ((12144 + 70108) / 353033)
=0.2199288 / 0.23298672
=0.944

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
=(28360 - 0 - 38011) / 342961
=-0.0281

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.

Exxon Mobil Corporation has a M-score of -2.85 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.

Exxon Mobil Corporation Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.87140.89561.35690.57431.72010.94650.73320.95571.00480.7589
GMI 1.06080.97721.01691.07540.99091.02981.05620.99371.06050.9948
AQI 0.99951.00451.07921.03711.1060.87040.90230.96810.99570.9938
SGI 1.24371.01881.07131.180.65061.23391.26930.98820.91170.94
DEPI 0.94340.95820.99160.99411.17321.14561.01761.03440.99321.0281
SGAI 0.83610.97280.97380.90341.42680.80760.80390.93731.01781.0408
LVGI 1.02571.00441.06840.90971.03080.97551.05990.82321.04990.9629
TATA -0.1139-0.1002-0.0471-0.0636-0.0393-0.0593-0.0432-0.0338-0.0356-0.036
M-score -2.87-3.04-2.29-2.91-2.34-2.58-2.68-2.63-2.71-2.92

Exxon Mobil Corporation Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.95451.02021.17331.00161.0061.01090.97530.94410.75970.9018
GMI 0.99491.01621.13521.1961.05921.11791.07081.05711.04720.975
AQI 0.96810.80931.00231.02210.99571.00550.94590.93050.99380.9733
SGI 0.98940.93770.89270.90560.91060.9370.99180.98690.93890.8546
DEPI 1.03441.05211.0281.02350.99320.98551.03591.0231.02811.006
SGAI 0.93610.9550.99990.98151.0191.02720.97891.00951.0421.1055
LVGI 0.82320.7020.75350.97861.04991.02030.96650.95360.96290.944
TATA -0.0338-0.0163-0.0353-0.0396-0.0356-0.0404-0.0414-0.0386-0.036-0.0281
M-score -2.63-2.55-2.43-2.62-2.71-2.66-2.67-2.71-2.89-2.85
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