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Exxon Mobil Corporation (NYSE:XOM)
Beneish M-Score
-2.92 (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 -2.92 suggests that the company is not a manipulator.

XOM' s 10-Year Beneish M-Score Range
Min: -3.1   Max: -2.29
Current: -2.92

-3.1
-2.29

During the past 13 years, the highest Beneish M-Score of Exxon Mobil Corporation was -2.29. The lowest was -3.10. And the median was -2.71.


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 * 0.7589+0.528 * 0.9948+0.404 * 0.9938+0.892 * 0.94+0.115 * 1.0281
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0408+4.679 * -0.036-0.327 * 0.9629
=-2.92

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $18,541 Mil.
Revenue was 86029 + 107490 + 111647 + 106773 = $411,939 Mil.
Gross Profit was 31106 + 37111 + 38520 + 38371 = $145,108 Mil.
Total Current Assets was $52,910 Mil.
Total Assets was $349,493 Mil.
Property, Plant and Equipment(Net PPE) was $252,668 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,297 Mil.
Selling, General & Admin. Expense(SGA) was $12,598 Mil.
Total Current Liabilities was $64,633 Mil.
Long-Term Debt was $11,653 Mil.
Net Income was 6570 + 8070 + 8780 + 9100 = $32,520 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 7415 + 12396 + 10202 + 15103 = $45,116 Mil.
Accounts Receivable was $25,993 Mil.
Revenue was 110860 + 112372 + 106666 + 108357 = $438,255 Mil.
Gross Profit was 39123 + 38569 + 36710 + 39172 = $153,574 Mil.
Total Current Assets was $59,308 Mil.
Total Assets was $346,808 Mil.
Property, Plant and Equipment(Net PPE) was $243,650 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,182 Mil.
Selling, General & Admin. Expense(SGA) was $12,877 Mil.
Total Current Liabilities was $71,724 Mil.
Long-Term Debt was $6,891 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)
=(18541 / 411939) / (25993 / 438255)
=0.04500909 / 0.05931022
=0.7589

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)
=(37111 / 438255) / (31106 / 411939)
=0.35042156 / 0.35225604
=0.9948

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 - (52910 + 252668) / 349493) / (1 - (59308 + 243650) / 346808)
=0.12565345 / 0.12643884
=0.9938

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
=411939 / 438255
=0.94

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))
=(17182 / (17182 + 243650)) / (17297 / (17297 + 252668))
=0.06587382 / 0.06407127
=1.0281

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)
=(12598 / 411939) / (12877 / 438255)
=0.0305822 / 0.02938244
=1.0408

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)
=((11653 + 64633) / 349493) / ((6891 + 71724) / 346808)
=0.21827619 / 0.22668162
=0.9629

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
=(32520 - 0 - 45116) / 349493
=-0.036

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 -2.92 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.02630.95451.02021.17331.00161.0061.00990.97430.94310.7589
GMI 0.87090.99491.01621.13521.1961.05921.06471.02051.00690.9948
AQI 0.92250.96810.80931.00231.02210.99571.00550.94590.93050.9938
SGI 1.03860.98940.93770.89270.90560.91060.93790.99280.9880.94
DEPI 1.04491.03441.05211.0281.02350.99320.98551.03591.0231.0281
SGAI 0.93310.93610.9550.99990.98151.0191.02610.97791.00851.0408
LVGI 0.90350.82320.7020.75350.97861.04991.02030.96650.95360.9629
TATA 0.0063-0.0338-0.0163-0.0353-0.0396-0.0356-0.0404-0.0414-0.0386-0.036
M-score -2.44-2.63-2.55-2.43-2.62-2.71-2.69-2.70-2.73-2.92
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