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Exxon Mobil Corporation (NYSE:XOM)
Beneish M-Score
-2.69 (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 -2.69 suggests that the company is not a manipulator.

XOM' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -1.61
Current: -2.69

-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 * 0.9743+0.528 * 1.0275+0.404 * 0.9459+0.892 * 0.9928+0.115 * 1.0359
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9779+4.679 * -0.0414-0.327 * 0.9665
=-2.69

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $34,182 Mil.
Revenue was 111647 + 106773 + 110860 + 112372 = $441,652 Mil.
Gross Profit was 30153 + 30638 + 30869 + 30201 = $121,861 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.
Net Income was 8780 + 9100 + 8350 + 7870 = $34,100 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 10202 + 15103 + 10208 + 13431 = $48,944 Mil.
Accounts Receivable was $35,340 Mil.
Revenue was 106666 + 108357 + 114699 + 115141 = $444,863 Mil.
Gross Profit was 28704 + 31235 + 33413 + 32767 = $126,119 Mil.
Total Current Assets was $62,844 Mil.
Total Assets was $341,615 Mil.
Property, Plant and Equipment(Net PPE) was $235,240 Mil.
Depreciation, Depletion and Amortization(DDA) was $16,662 Mil.
Selling, General & Admin. Expense(SGA) was $13,176 Mil.
Total Current Liabilities was $72,688 Mil.
Long-Term Debt was $7,496 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)
=(34182 / 441652) / (35340 / 444863)
=0.07739578 / 0.07944019
=0.9743

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)
=(30638 / 444863) / (30153 / 441652)
=0.28350076 / 0.27592086
=1.0275

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 - (64013 + 251353) / 358586) / (1 - (62844 + 235240) / 341615)
=0.12052897 / 0.12742707
=0.9459

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
=441652 / 444863
=0.9928

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))
=(16662 / (16662 + 235240)) / (17144 / (17144 + 251353))
=0.06614477 / 0.06385174
=1.0359

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)
=(12792 / 441652) / (13176 / 444863)
=0.02896398 / 0.02961811
=0.9779

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)
=((11817 + 69529) / 358586) / ((7496 + 72688) / 341615)
=0.22685214 / 0.23472037
=0.9665

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
=(34100 - 0 - 48944) / 358586
=-0.0414

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 -2.69 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.8360.84311.02630.91511.02021.17331.00161.04051.00990.9743
GMI 1.26411.19151.17350.93221.01521.11521.12121.15041.09251.0275
AQI 1.150.94050.92250.96810.80931.00231.02210.99571.00550.9459
SGI 1.21991.13271.03860.98940.93770.89270.90560.91060.93790.9928
DEPI 1.02321.02731.04491.03441.05211.0281.02350.99320.98551.0359
SGAI 0.82860.87640.93310.93610.9550.99990.98151.0191.02610.9779
LVGI 1.21011.17270.90350.82320.7020.75350.97861.04991.02030.9665
TATA -0.0408-0.00750.0063-0.0338-0.0163-0.0353-0.0396-0.0356-0.0404-0.0414
M-score -2.46-2.50-2.28-2.70-2.55-2.44-2.66-2.63-2.68-2.69
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