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Exxon Mobil Corp (NYSE:XOM)
Beneish M-Score
-2.55 (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 -2.55 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: -2.55

-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 -2.59.


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 * 1.2075+0.528 * 1.2691+0.404 * 1.043+0.892 * 0.7621+0.115 * 0.9458
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2363+4.679 * -0.0298-0.327 * 1.0612
=-2.55

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $20,388 Mil.
Revenue was 58677 + 57694 + 48707 + 59807 = $224,885 Mil.
Gross Profit was 22933 + 17053 + 15624 + 404 = $56,014 Mil.
Total Current Assets was $42,945 Mil.
Total Assets was $339,386 Mil.
Property, Plant and Equipment(Net PPE) was $251,923 Mil.
Depreciation, Depletion and Amortization(DDA) was $18,946 Mil.
Selling, General & Admin. Expense(SGA) was $10,965 Mil.
Total Current Liabilities was $50,021 Mil.
Long-Term Debt was $28,916 Mil.
Net Income was 2650 + 1700 + 1810 + 2780 = $8,940 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 5355 + 4519 + 4812 + 4380 = $19,066 Mil.
Accounts Receivable was $22,157 Mil.
Revenue was 67344 + 74113 + 67618 + 86029 = $295,104 Mil.
Gross Profit was 26454 + 21601 + 20660 + 24570 = $93,285 Mil.
Total Current Assets was $47,234 Mil.
Total Assets was $340,662 Mil.
Property, Plant and Equipment(Net PPE) was $250,583 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,751 Mil.
Selling, General & Admin. Expense(SGA) was $11,639 Mil.
Total Current Liabilities was $54,828 Mil.
Long-Term Debt was $19,839 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)
=(20388 / 224885) / (22157 / 295104)
=0.09065967 / 0.075082
=1.2075

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)
=(93285 / 295104) / (56014 / 224885)
=0.3161089 / 0.24907842
=1.2691

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 - (42945 + 251923) / 339386) / (1 - (47234 + 250583) / 340662)
=0.13117218 / 0.12576982
=1.043

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
=224885 / 295104
=0.7621

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))
=(17751 / (17751 + 250583)) / (18946 / (18946 + 251923))
=0.06615263 / 0.06994525
=0.9458

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)
=(10965 / 224885) / (11639 / 295104)
=0.04875825 / 0.03944033
=1.2363

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)
=((28916 + 50021) / 339386) / ((19839 + 54828) / 340662)
=0.23258767 / 0.21918206
=1.0612

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
=(8940 - 0 - 19066) / 339386
=-0.0298

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 -2.55 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 local exchange's currency.

Exxon Mobil Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.89561.14560.68021.72010.94650.9430.74051.00820.75891.6423
GMI 0.97721.01691.07540.99091.27291.05040.99091.08030.99860.9373
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 0.0988-0.0471-0.0636-0.0393-0.0593-0.0432-0.0338-0.0356-0.036-0.0421
M-score -2.11-2.48-2.81-2.34-2.45-2.49-2.83-2.70-2.92-2.50

Exxon Mobil Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.97710.94470.75930.90231.00041.05911.64231.18051.2071.2075
GMI 1.02361.00830.9980.990.97420.88841.09321.10361.12831.2691
AQI 0.94590.93050.99380.97331.02351.03751.00511.01161.0081.043
SGI 0.98990.98630.93940.85410.75910.67570.65270.67060.69670.7621
DEPI 1.03591.0231.02811.0060.98560.9690.95730.96430.93640.9458
SGAI 0.98081.01011.04141.10621.21941.34471.39861.39361.35721.2363
LVGI 0.96650.95360.96290.9440.98480.99671.00541.03851.05871.0612
TATA -0.0414-0.0386-0.036-0.0281-0.0368-0.0394-0.0421-0.0412-0.0361-0.0298
M-score -2.69-2.73-2.92-2.85-2.91-3.00-2.42-2.83-2.75-2.55
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