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Exxon Mobil Corp (NYSE:XOM)
Beneish M-Score
-2.98 (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 -2.98 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: -2.98

-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 * 1.0591+0.528 * 0.9474+0.404 * 1.0375+0.892 * 0.6757+0.115 * 0.969
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3447+4.679 * -0.0399-0.327 * 0.9967
=-2.98

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $22,157 Mil.
Revenue was 67344 + 74113 + 67618 + 86029 = $295,104 Mil.
Gross Profit was 20641 + 21601 + 20660 + 24570 = $87,472 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.
Net Income was 4240 + 4190 + 4940 + 6570 = $19,940 Mil.
Non Operating Income was 78 + 0 + 88 + 0 = $166 Mil.
Cash Flow from Operations was 9174 + 8792 + 7998 + 7415 = $33,379 Mil.
Accounts Receivable was $30,963 Mil.
Revenue was 107490 + 111647 + 106773 + 110860 = $436,770 Mil.
Gross Profit was 29592 + 30649 + 30955 + 31460 = $122,656 Mil.
Total Current Assets was $58,595 Mil.
Total Assets was $352,764 Mil.
Property, Plant and Equipment(Net PPE) was $251,406 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,219 Mil.
Selling, General & Admin. Expense(SGA) was $12,811 Mil.
Total Current Liabilities was $65,984 Mil.
Long-Term Debt was $11,591 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)
=(22157 / 295104) / (30963 / 436770)
=0.075082 / 0.07089086
=1.0591

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)
=(21601 / 436770) / (20641 / 295104)
=0.28082515 / 0.29641076
=0.9474

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 - (47234 + 250583) / 340662) / (1 - (58595 + 251406) / 352764)
=0.12576982 / 0.12122269
=1.0375

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
=295104 / 436770
=0.6757

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))
=(17219 / (17219 + 251406)) / (17751 / (17751 + 250583))
=0.06410051 / 0.06615263
=0.969

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)
=(11639 / 295104) / (12811 / 436770)
=0.03944033 / 0.02933123
=1.3447

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)
=((19839 + 54828) / 340662) / ((11591 + 65984) / 352764)
=0.21918206 / 0.21990623
=0.9967

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
=(19940 - 166 - 33379) / 340662
=-0.0399

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 -2.98 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 0.89561.14560.68021.72010.94650.9430.74051.00820.75891.6423
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 0.0988-0.0487-0.0666-0.0416-0.0593-0.0432-0.0338-0.0356-0.036-0.0421
M-score -2.11-2.49-2.83-2.35-2.45-2.49-2.83-2.70-2.92-2.50

Exxon Mobil Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.00111.00761.01350.97710.94470.75930.90231.00041.05911.6423
GMI 1.1271.14031.14691.02361.00830.9980.990.97420.94740.9373
AQI 1.02210.99571.00550.94590.93050.99380.97331.02351.03751.0051
SGI 0.90610.90920.93450.98990.98630.93940.85410.75910.67570.6527
DEPI 1.02350.99320.98551.03591.0231.02811.0060.98560.9690.9573
SGAI 0.9811.02061.02990.98081.01011.04141.10621.21941.34471.3986
LVGI 0.97861.04991.02030.96650.95360.96290.9440.98480.99671.0054
TATA -0.0396-0.0356-0.0404-0.0414-0.0386-0.036-0.0284-0.0371-0.0399-0.0419
M-score -2.66-2.67-2.65-2.69-2.73-2.92-2.85-2.91-2.98-2.50
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