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Exxon Mobil Corporation (NYSE:XOM)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

XOM' s 10-Year Beneish M-Score Range
Min: -3.1   Max: -2.33
Current: -2.67

-3.1
-2.33

During the past 13 years, the highest Beneish M-Score of Exxon Mobil Corporation was -2.33. The lowest was -3.10. And the median was -2.73.


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 * 1.0399+0.528 * 1.084+0.404 * 0.9957+0.892 * 0.9112+0.115 * 0.9932
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0184+4.679 * -0.0356-0.327 * 1.0499
=-2.67

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $33,152 Mil.
Revenue was 110860 + 112372 + 106469 + 108807 = $438,508 Mil.
Gross Profit was 30869 + 30201 + 28704 + 38727 = $128,501 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.
Net Income was 8350 + 7870 + 6860 + 9500 = $32,580 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 10208 + 13431 + 7683 + 13592 = $44,914 Mil.
Accounts Receivable was $34,987 Mil.
Revenue was 114699 + 115141 + 127363 + 124053 = $481,256 Mil.
Gross Profit was 33413 + 32767 + 42833 + 43856 = $152,869 Mil.
Total Current Assets was $64,460 Mil.
Total Assets was $333,795 Mil.
Property, Plant and Equipment(Net PPE) was $226,949 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,888 Mil.
Selling, General & Admin. Expense(SGA) was $13,877 Mil.
Total Current Liabilities was $64,139 Mil.
Long-Term Debt was $7,928 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)
=(33152 / 438508) / (34987 / 481256)
=0.07560181 / 0.07269935
=1.0399

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)
=(30201 / 481256) / (30869 / 438508)
=0.31764591 / 0.2930414
=1.084

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 - (59308 + 243650) / 346808) / (1 - (64460 + 226949) / 333795)
=0.12643884 / 0.12698213
=0.9957

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
=438508 / 481256
=0.9112

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))
=(15888 / (15888 + 226949)) / (17182 / (17182 + 243650))
=0.0654266 / 0.06587382
=0.9932

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)
=(12877 / 438508) / (13877 / 481256)
=0.02936548 / 0.02883497
=1.0184

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)
=((6891 + 71724) / 346808) / ((7928 + 64139) / 333795)
=0.22668162 / 0.21590198
=1.0499

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
=(32580 - 0 - 44914) / 346808
=-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 Corporation has a M-score of -2.67 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.86360.87141.03371.17560.57431.72010.94650.9430.91621.0393
GMI 1.04911.06080.97721.02561.3031.02380.81571.31710.98591.0878
AQI 1.00290.99951.00451.07921.03711.1060.87040.90230.96810.9957
SGI 1.20791.24371.01881.07131.180.65061.23391.26930.98820.9117
DEPI 0.9620.94340.95820.99160.99411.17321.14561.01761.03440.9932
SGAI 0.85590.83610.97280.97380.90341.42680.80760.80390.93731.0178
LVGI 0.99291.02571.00441.06840.90971.03080.97551.05990.82321.0499
TATA -0.1127-0.1139-0.1002-0.1058-0.0636-0.0393-0.0946-0.0432-0.0338-0.0356
M-score -2.90-2.87-2.91-2.72-2.79-2.32-2.86-2.35-2.67-2.66

Exxon Mobil Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.88940.9430.8360.84311.02630.91511.01921.17271.0011.0399
GMI 0.84771.31711.26411.19151.17350.93220.96461.05321.05771.084
AQI 0.98870.90231.150.94050.92250.96810.80931.00231.02210.9957
SGI 1.27761.26931.21991.13271.03860.98940.93860.89320.90610.9112
DEPI 0.93291.01761.02321.02731.04491.03441.05211.0281.02350.9932
SGAI 0.79430.80390.82860.87640.93310.93610.9540.99930.98091.0184
LVGI 1.01631.05991.21011.17270.90350.82320.7020.75350.97861.0499
TATA -0.0979-0.0432-0.0408-0.00750.0063-0.0338-0.0163-0.0353-0.0396-0.0356
M-score -2.85-2.35-2.46-2.50-2.28-2.70-2.58-2.47-2.70-2.67
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