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Exxon Mobil Corporation (NYSE:XOM)
Beneish M-Score
-2.73 (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 -2.73 suggests that the company is not a manipulator.

XOM' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -1.61
Current: -2.73

-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 -2.79.


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 * 0.9431+0.528 * 1.0069+0.404 * 0.9305+0.892 * 0.988+0.115 * 1.023
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0085+4.679 * -0.0386-0.327 * 0.9536
=-2.73

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $30,963 Mil.
Revenue was 107490 + 111647 + 106773 + 110860 = $436,770 Mil.
Gross Profit was 37111 + 38520 + 38371 + 39123 = $153,125 Mil.
Total Current Assets was $58,595 Mil.
Total Assets was $352,764 Mil.
Property, Plant and Equipment(Net PPE) was $251,406 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,219 Mil.
Selling, General & Admin. Expense(SGA) was $12,811 Mil.
Total Current Liabilities was $65,984 Mil.
Long-Term Debt was $11,591 Mil.
Net Income was 8070 + 8780 + 9100 + 8350 = $34,300 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 12396 + 10202 + 15103 + 10208 = $47,909 Mil.
Accounts Receivable was $33,230 Mil.
Revenue was 112372 + 106666 + 108357 + 114699 = $442,094 Mil.
Gross Profit was 38569 + 36710 + 39172 + 41617 = $156,068 Mil.
Total Current Assets was $61,303 Mil.
Total Assets was $347,564 Mil.
Property, Plant and Equipment(Net PPE) was $240,981 Mil.
Depreciation, Depletion and Amortization(DDA) was $16,912 Mil.
Selling, General & Admin. Expense(SGA) was $12,858 Mil.
Total Current Liabilities was $72,749 Mil.
Long-Term Debt was $7,404 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)
=(30963 / 436770) / (33230 / 442094)
=0.07089086 / 0.07516501
=0.9431

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)
=(38520 / 442094) / (37111 / 436770)
=0.35301995 / 0.35058498
=1.0069

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 - (58595 + 251406) / 352764) / (1 - (61303 + 240981) / 347564)
=0.12122269 / 0.13027816
=0.9305

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
=436770 / 442094
=0.988

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))
=(16912 / (16912 + 240981)) / (17219 / (17219 + 251406))
=0.06557758 / 0.06410051
=1.023

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)
=(12811 / 436770) / (12858 / 442094)
=0.02933123 / 0.02908431
=1.0085

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)
=((11591 + 65984) / 352764) / ((7404 + 72749) / 347564)
=0.21990623 / 0.23061364
=0.9536

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
=(34300 - 0 - 47909) / 352764
=-0.0386

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 -2.73 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 0.86360.87140.89561.35690.43492.27130.94650.73320.95571.0048
GMI 1.04911.06080.97721.01691.07540.99091.02981.05620.99371.0605
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 -0.1127-0.1139-0.1002-0.0471-0.0636-0.0393-0.0593-0.0432-0.0338-0.0356
M-score -2.90-2.87-3.04-2.29-3.04-1.83-2.58-2.68-2.63-2.71

Exxon Mobil Corporation Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.84311.02630.95451.02021.17331.00161.0061.00990.97430.9431
GMI 0.9290.87090.99491.01621.13521.1961.05921.06471.02051.0069
AQI 0.94050.92250.96810.80931.00231.02210.99571.00550.94590.9305
SGI 1.13271.03860.98940.93770.89270.90560.91060.93790.99280.988
DEPI 1.02731.04491.03441.05211.0281.02350.99320.98551.03591.023
SGAI 0.87640.93310.93610.9550.99990.98151.0191.02610.97791.0085
LVGI 1.17270.90350.82320.7020.75350.97861.04991.02030.96650.9536
TATA -0.00750.0063-0.0338-0.0163-0.0353-0.0396-0.0356-0.0404-0.0414-0.0386
M-score -2.63-2.44-2.63-2.55-2.43-2.62-2.71-2.69-2.70-2.73
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