Switch to:
Exxon Mobil Corporation (NYSE:XOM)
Beneish M-Score
-2.91 (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 -2.91 suggests that the company is not a manipulator.

XOM' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -1.61
Current: -2.91

-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 * 0.9984+0.528 * 0.9613+0.404 * 1.0235+0.892 * 0.7606+0.115 * 0.9856
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.217+4.679 * -0.0368-0.327 * 0.9848
=-2.91

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $25,957 Mil.
Revenue was 74113 + 67618 + 86029 + 107490 = $335,250 Mil.
Gross Profit was 27566 + 20660 + 31106 + 37111 = $116,443 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.
Net Income was 4190 + 4940 + 6570 + 8070 = $23,770 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 8792 + 7998 + 7415 + 12396 = $36,601 Mil.
Accounts Receivable was $34,182 Mil.
Revenue was 111208 + 106325 + 110860 + 112372 = $440,765 Mil.
Gross Profit was 38520 + 30955 + 39123 + 38569 = $147,167 Mil.
Total Current Assets was $64,013 Mil.
Total Assets was $358,586 Mil.
Property, Plant and Equipment(Net PPE) was $251,353 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,144 Mil.
Selling, General & Admin. Expense(SGA) was $12,792 Mil.
Total Current Liabilities was $69,529 Mil.
Long-Term Debt was $11,817 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)
=(25957 / 335250) / (34182 / 440765)
=0.0774258 / 0.07755153
=0.9984

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)
=(20660 / 440765) / (27566 / 335250)
=0.33388994 / 0.34733184
=0.9613

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 - (51647 + 253653) / 348260) / (1 - (64013 + 251353) / 358586)
=0.12335611 / 0.12052897
=1.0235

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
=335250 / 440765
=0.7606

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))
=(17144 / (17144 + 251353)) / (17571 / (17571 + 253653))
=0.06385174 / 0.06478409
=0.9856

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)
=(11841 / 335250) / (12792 / 440765)
=0.03531991 / 0.02902227
=1.217

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)
=((19431 + 58372) / 348260) / ((11817 + 69529) / 358586)
=0.22340493 / 0.22685214
=0.9848

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
=(23770 - 0 - 36601) / 348260
=-0.0368

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 -2.91 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 0.87140.89561.35690.57431.72010.94650.73320.95251.00820.7589
GMI 1.06080.97721.01691.07540.99091.02981.05620.99711.05690.9948
AQI 0.99951.00451.07921.03711.1060.87040.90230.96810.99570.9938
SGI 1.24371.01881.07131.180.65061.23391.26930.99150.90870.94
DEPI 0.94340.95820.99160.99411.17321.14561.01761.03440.99321.0281
SGAI 0.83610.97280.97380.90341.42680.80760.80390.93411.02121.0408
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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.02021.17331.00161.0061.01090.97620.94510.76050.90290.9984
GMI 1.01621.13521.1961.05921.11791.06981.0561.04610.97390.9613
AQI 0.80931.00231.02210.99571.00550.94590.93050.99380.97331.0235
SGI 0.93770.89270.90560.91060.9370.99080.9860.93790.85360.7606
DEPI 1.05211.0281.02350.99320.98551.03591.0231.02811.0060.9856
SGAI 0.9550.99990.98151.0191.02720.97991.01051.04311.10681.217
LVGI 0.7020.75350.97861.04991.02030.96650.95360.96290.9440.9848
TATA -0.0163-0.0353-0.0396-0.0356-0.0404-0.0414-0.0386-0.036-0.0281-0.0368
M-score -2.55-2.43-2.62-2.71-2.66-2.67-2.71-2.89-2.86-2.91
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)

GuruFocus Premium Plus Membership

FEEDBACK