Switch to:
Exxon Mobil Corp (NYSE:XOM)
Beneish M-Score
-2.84 (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 Corp has a M-score of -2.84 suggests that the company is not a manipulator.

XOM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19   Max: -1.26
Current: -2.84

-3.19
-1.26

During the past 13 years, the highest Beneish M-Score of Exxon Mobil Corp was -1.26. The lowest was -3.19. And the median was -2.60.


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 Corp 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 * 1.2102+0.528 * 0.9432+0.404 * 1.008+0.892 * 0.6948+0.115 * 0.9364
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3608+4.679 * -0.0356-0.327 * 1.0587
=-2.84

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $21,827 Mil.
Revenue was 57694 + 48707 + 59807 + 67344 = $233,552 Mil.
Gross Profit was 17053 + 15624 + 17712 + 20641 = $71,030 Mil.
Total Current Assets was $45,828 Mil.
Total Assets was $342,473 Mil.
Property, Plant and Equipment(Net PPE) was $254,062 Mil.
Depreciation, Depletion and Amortization(DDA) was $18,883 Mil.
Selling, General & Admin. Expense(SGA) was $11,196 Mil.
Total Current Liabilities was $51,504 Mil.
Long-Term Debt was $29,499 Mil.
Net Income was 1700 + 1810 + 2780 + 4240 = $10,530 Mil.
Non Operating Income was 0 + 0 + -251 + 78 = $-173 Mil.
Cash Flow from Operations was 4519 + 4812 + 4380 + 9174 = $22,885 Mil.
Accounts Receivable was $25,957 Mil.
Revenue was 74113 + 67618 + 87276 + 107130 = $336,137 Mil.
Gross Profit was 21601 + 20660 + 24570 + 29592 = $96,423 Mil.
Total Current Assets was $51,647 Mil.
Total Assets was $348,260 Mil.
Property, Plant and Equipment(Net PPE) was $253,653 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,571 Mil.
Selling, General & Admin. Expense(SGA) was $11,841 Mil.
Total Current Liabilities was $58,372 Mil.
Long-Term Debt was $19,431 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)
=(21827 / 233552) / (25957 / 336137)
=0.0934567 / 0.07722149
=1.2102

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)
=(96423 / 336137) / (71030 / 233552)
=0.28685625 / 0.30412927
=0.9432

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 - (45828 + 254062) / 342473) / (1 - (51647 + 253653) / 348260)
=0.12433973 / 0.12335611
=1.008

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
=233552 / 336137
=0.6948

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))
=(17571 / (17571 + 253653)) / (18883 / (18883 + 254062))
=0.06478409 / 0.06918244
=0.9364

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)
=(11196 / 233552) / (11841 / 336137)
=0.04793793 / 0.03522671
=1.3608

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)
=((29499 + 51504) / 342473) / ((19431 + 58372) / 348260)
=0.23652376 / 0.22340493
=1.0587

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
=(10530 - -173 - 22885) / 342473
=-0.0356

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 Corp has a M-score of -2.84 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 Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.89561.14560.68021.72010.94650.73320.95571.00481.14641.0871
GMI 0.97721.01691.07541.2511.00831.05040.98761.0840.99860.9373
AQI 1.00451.07921.03711.1060.87040.90230.96810.99570.99381.0051
SGI 1.01881.07131.180.65061.23391.26930.98820.91170.940.6527
DEPI 0.95820.99160.99411.17321.14561.01761.03440.99321.02810.9573
SGAI 0.97280.97380.90341.42680.80760.80390.93731.01781.04081.3986
LVGI 1.00441.06840.90971.03080.97551.05990.82321.04990.96291.0054
TATA 0.0988-0.0487-0.0666-0.0393-0.0593-0.0432-0.0338-0.0356-0.036-0.0421
M-score -2.11-2.49-2.83-2.20-2.59-2.68-2.64-2.70-2.56-3.01

Exxon Mobil Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.01090.97620.94581.14640.90070.99571.05171.08711.18191.2102
GMI 1.08841.02451.00710.99860.99180.97880.95410.93730.93460.9432
AQI 1.00550.94590.93050.99380.97331.02351.03751.00511.01161.008
SGI 0.9370.99080.98510.940.85560.76260.68040.65270.66970.6948
DEPI 0.98551.03591.0231.02811.0060.98560.9690.95730.96430.9364
SGAI 1.02720.97991.01141.04081.10421.21381.33521.39861.39531.3608
LVGI 1.02030.96650.95360.96290.9440.98480.99671.00541.03851.0587
TATA -0.0405-0.0416-0.039-0.0359-0.0278-0.0365-0.039-0.0416-0.0407-0.0356
M-score -2.68-2.70-2.73-2.56-2.84-2.90-2.97-3.01-2.91-2.84
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK