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Exxon Mobil Corp (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 Corp has a M-score of -2.91 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: -2.91

-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 * 1.1819+0.528 * 0.9346+0.404 * 1.0116+0.892 * 0.6697+0.115 * 0.9643
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3953+4.679 * -0.0407-0.327 * 1.0385
=-2.91

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $19,814 Mil.
Revenue was 48707 + 59807 + 67344 + 74113 = $249,971 Mil.
Gross Profit was 15624 + 17712 + 20641 + 21601 = $75,578 Mil.
Total Current Assets was $44,251 Mil.
Total Assets was $342,789 Mil.
Property, Plant and Equipment(Net PPE) was $255,257 Mil.
Depreciation, Depletion and Amortization(DDA) was $18,513 Mil.
Selling, General & Admin. Expense(SGA) was $11,381 Mil.
Total Current Liabilities was $48,726 Mil.
Long-Term Debt was $29,568 Mil.
Net Income was 1810 + 2780 + 4240 + 4190 = $13,020 Mil.
Non Operating Income was 0 + -251 + 78 + 0 = $-173 Mil.
Cash Flow from Operations was 4812 + 4380 + 9174 + 8792 = $27,158 Mil.
Accounts Receivable was $25,031 Mil.
Revenue was 67618 + 87276 + 107130 + 111208 = $373,232 Mil.
Gross Profit was 20660 + 24570 + 29592 + 30649 = $105,471 Mil.
Total Current Assets was $50,658 Mil.
Total Assets was $342,961 Mil.
Property, Plant and Equipment(Net PPE) was $249,497 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,405 Mil.
Selling, General & Admin. Expense(SGA) was $12,179 Mil.
Total Current Liabilities was $55,933 Mil.
Long-Term Debt was $19,494 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)
=(19814 / 249971) / (25031 / 373232)
=0.07926519 / 0.06706552
=1.1819

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)
=(105471 / 373232) / (75578 / 249971)
=0.28258831 / 0.30234707
=0.9346

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 - (44251 + 255257) / 342789) / (1 - (50658 + 249497) / 342961)
=0.12626134 / 0.12481303
=1.0116

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
=249971 / 373232
=0.6697

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))
=(17405 / (17405 + 249497)) / (18513 / (18513 + 255257))
=0.0652112 / 0.06762246
=0.9643

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)
=(11381 / 249971) / (12179 / 373232)
=0.04552928 / 0.03263118
=1.3953

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)
=((29568 + 48726) / 342789) / ((19494 + 55933) / 342961)
=0.2284029 / 0.2199288
=1.0385

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
=(13020 - -173 - 27158) / 342789
=-0.0407

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 -2.91 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 Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.89561.14560.68021.72010.94650.73320.95251.00821.14641.0871
GMI 0.97721.02561.07450.98341.27291.05040.99091.08030.99860.9373
AQI 1.00451.07921.03711.1060.87040.90230.96810.99570.99381.0051
SGI 1.01881.07131.180.65061.23391.26930.99150.90870.940.6527
DEPI 0.95820.99160.99411.17321.14561.01761.03440.99321.02810.9573
SGAI 0.97280.97380.90341.42680.80760.80390.93411.02121.04081.3986
LVGI 1.00441.06840.90971.03080.97551.05990.82321.04990.96291.0054
TATA -0.03990.08820.0949-0.0416-0.0593-0.0432-0.0338-0.0356-0.036-0.0421
M-score -2.76-1.84-2.07-2.35-2.45-2.68-2.63-2.70-2.56-3.01

Exxon Mobil Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.0061.01090.97620.94581.14640.90070.99571.05171.08711.1819
GMI 1.08271.08841.02451.00710.99860.99180.97880.95410.93730.9346
AQI 0.99571.00550.94590.93050.99380.97331.02351.03751.00511.0116
SGI 0.91060.9370.99080.98510.940.85560.76260.68040.65270.6697
DEPI 0.99320.98551.03591.0231.02811.0060.98560.9690.95730.9643
SGAI 1.0191.02720.97991.01141.04081.10421.21381.33521.39861.3953
LVGI 1.04991.02030.96650.95360.96290.9440.98480.99671.00541.0385
TATA -0.0356-0.0405-0.0416-0.039-0.0359-0.0278-0.0365-0.039-0.0416-0.0407
M-score -2.70-2.68-2.70-2.73-2.56-2.84-2.90-2.97-3.01-2.91
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