Switch to:
GuruFocus has detected 4 Warning Signs with Chevron Corp $CVX.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Chevron Corp (NYSE:CVX)
Beneish M-Score
-2.56 (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.

Chevron Corp has a M-score of -2.56 suggests that the company is not a manipulator.

CVX' s Beneish M-Score Range Over the Past 10 Years
Min: -6.14   Max: -0.42
Current: -2.56

-6.14
-0.42

During the past 13 years, the highest Beneish M-Score of Chevron Corp was -0.42. The lowest was -6.14. 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 Chevron 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 * 1.1317+0.528 * 1.0275+0.404 * 1.1886+0.892 * 0.9754+0.115 * 1.0334
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9317+4.679 * -0.0558-0.327 * 1.0761
=-2.56

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $13,754 Mil.
Revenue was 33421 + 31497 + 30140 + 29282 = $124,340 Mil.
Gross Profit was 11259 + 9377 + 9632 + 12220 = $42,488 Mil.
Total Current Assets was $29,568 Mil.
Total Assets was $259,111 Mil.
Property, Plant and Equipment(Net PPE) was $180,296 Mil.
Depreciation, Depletion and Amortization(DDA) was $19,248 Mil.
Selling, General & Admin. Expense(SGA) was $9,610 Mil.
Total Current Liabilities was $28,426 Mil.
Long-Term Debt was $36,959 Mil.
Net Income was 2682 + 415 + 1283 + -1470 = $2,910 Mil.
Non Operating Income was 0 + 0 + 0 + 1784 = $1,784 Mil.
Cash Flow from Operations was 3879 + 3863 + 5311 + 2531 = $15,584 Mil.
Accounts Receivable was $12,459 Mil.
Revenue was 23553 + 29247 + 34315 + 40357 = $127,472 Mil.
Gross Profit was 6924 + 8707 + 11276 + 17851 = $44,758 Mil.
Total Current Assets was $31,713 Mil.
Total Assets was $263,842 Mil.
Property, Plant and Equipment(Net PPE) was $189,940 Mil.
Depreciation, Depletion and Amortization(DDA) was $21,029 Mil.
Selling, General & Admin. Expense(SGA) was $10,574 Mil.
Total Current Liabilities was $29,162 Mil.
Long-Term Debt was $32,709 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)
=(13754 / 124340) / (12459 / 127472)
=0.11061605 / 0.09773911
=1.1317

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)
=(44758 / 127472) / (42488 / 124340)
=0.35112025 / 0.34170822
=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 - (29568 + 180296) / 259111) / (1 - (31713 + 189940) / 263842)
=0.1900614 / 0.15990252
=1.1886

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
=124340 / 127472
=0.9754

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))
=(21029 / (21029 + 189940)) / (19248 / (19248 + 180296))
=0.09967815 / 0.09645993
=1.0334

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)
=(9610 / 124340) / (10574 / 127472)
=0.07728808 / 0.08295155
=0.9317

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)
=((36959 + 28426) / 259111) / ((32709 + 29162) / 263842)
=0.25234359 / 0.23450019
=1.0761

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
=(2910 - 1784 - 15584) / 259111
=-0.0558

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.

Chevron Corp has a M-score of -2.56 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.

Chevron Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.21110.57161.77590.98210.8481.01051.08850.83571.17621.3256
GMI 1.00441.06441.09990.84940.9750.9351.13960.88170.9581.0791
AQI 0.99960.98660.92020.9050.9440.96010.98871.00191.03271.1771
SGI 1.05131.23590.62871.1941.2380.95350.9460.92620.65330.8266
DEPI 0.98561.06040.84321.00381.16631.09921.09370.94360.83611.041
SGAI 1.05140.78591.2510.032921.53212.18970.48122.51761.53121.1198
LVGI 0.98480.88240.93370.9880.95020.95841.0531.00561.0621.1546
TATA -0.0415-0.0354-0.1033-0.0419-0.0427-0.0542-0.0535-0.046-0.0636-0.0582
M-score -2.44-2.72-2.60-2.47-6.14-3.00-2.55-3.24-3.06-2.56

Chevron Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.83570.87580.96241.01921.17621.23951.26051.2171.32561.1317
GMI 0.88171.01220.92940.92770.9580.9221.06021.08621.07911.0275
AQI 1.00191.02981.01821.01271.03271.02131.11661.19161.17711.1886
SGI 0.92620.85780.77780.69950.65330.65960.66250.72250.82660.9754
DEPI 0.94360.95920.82050.81430.83610.8430.97110.97481.0411.0334
SGAI 2.51760.50261.32041.46561.53123.55391.33031.24181.11980.9317
LVGI 1.00561.02271.0041.02871.0621.06311.14161.1171.15461.0761
TATA -0.046-0.03-0.0543-0.0548-0.0636-0.0718-0.0616-0.0647-0.0582-0.0558
M-score -3.24-2.77-3.07-3.13-3.06-3.41-2.86-2.79-2.56-2.56
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK