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Exxon Mobil Corporation (NYSE:XOM)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

XOM' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -1.61
Current: -2.68

-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 * 1.0103+0.528 * 1.092+0.404 * 1.0055+0.892 * 0.9375+0.115 * 0.9855
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0266+4.679 * -0.0404-0.327 * 1.0203
=-2.68

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $32,480 Mil.
Revenue was 106773 + 110860 + 112372 + 106469 = $436,474 Mil.
Gross Profit was 30638 + 30869 + 30201 + 28704 = $120,412 Mil.
Total Current Assets was $61,864 Mil.
Total Assets was $353,033 Mil.
Property, Plant and Equipment(Net PPE) was $245,897 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,264 Mil.
Selling, General & Admin. Expense(SGA) was $12,891 Mil.
Total Current Liabilities was $70,108 Mil.
Long-Term Debt was $12,144 Mil.
Net Income was 9100 + 8350 + 7870 + 6860 = $32,180 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 15103 + 10208 + 13431 + 7683 = $46,425 Mil.
Accounts Receivable was $34,291 Mil.
Revenue was 108357 + 114699 + 115141 + 127363 = $465,560 Mil.
Gross Profit was 31235 + 33413 + 32767 + 42833 = $140,248 Mil.
Total Current Assets was $62,594 Mil.
Total Assets was $339,639 Mil.
Property, Plant and Equipment(Net PPE) was $233,728 Mil.
Depreciation, Depletion and Amortization(DDA) was $16,156 Mil.
Selling, General & Admin. Expense(SGA) was $13,394 Mil.
Total Current Liabilities was $70,084 Mil.
Long-Term Debt was $7,475 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)
=(32480 / 436474) / (34291 / 465560)
=0.07441451 / 0.07365538
=1.0103

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)
=(30869 / 465560) / (30638 / 436474)
=0.30124581 / 0.27587439
=1.092

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 - (61864 + 245897) / 353033) / (1 - (62594 + 233728) / 339639)
=0.1282373 / 0.12753836
=1.0055

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
=436474 / 465560
=0.9375

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))
=(16156 / (16156 + 233728)) / (17264 / (17264 + 245897))
=0.064654 / 0.06560243
=0.9855

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)
=(12891 / 436474) / (13394 / 465560)
=0.02953441 / 0.02876965
=1.0266

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)
=((12144 + 70108) / 353033) / ((7475 + 70084) / 339639)
=0.23298672 / 0.22835717
=1.0203

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
=(32180 - 0 - 46425) / 353033
=-0.0404

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 -2.68 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.9430.8360.84311.02630.91511.02021.17391.0021.0411.0103
GMI 1.31711.26411.19151.17350.93221.01521.11471.12071.14991.092
AQI 0.90231.150.94050.92250.96810.80931.00231.02210.99571.0055
SGI 1.26931.21991.13271.03860.98940.93770.89230.90520.91020.9375
DEPI 1.01761.02321.02731.04491.03441.05211.0281.02350.99320.9855
SGAI 0.80390.82860.87640.93310.93610.9551.00030.98191.01941.0266
LVGI 1.05991.21011.17270.90350.82320.7020.75350.97861.04991.0203
TATA -0.0432-0.0408-0.00750.0063-0.0338-0.0163-0.0353-0.0396-0.0356-0.0404
M-score -2.35-2.46-2.50-2.28-2.70-2.55-2.44-2.66-2.63-2.68
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