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ConocoPhillips Beneish M-Score

: -2.22 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.22 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for ConocoPhillips's Beneish M-Score or its related term are showing as below:

COP' s Beneish M-Score Range Over the Past 10 Years
Min: -16.1   Med: -2.72   Max: 39.96
Current: -2.22

During the past 13 years, the highest Beneish M-Score of ConocoPhillips was 39.96. The lowest was -16.10. And the median was -2.72.


ConocoPhillips Beneish M-Score Historical Data

The historical data trend for ConocoPhillips's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ConocoPhillips Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.29 -3.19 -3.19 -0.23 -2.27

ConocoPhillips Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.64 -2.34 -2.27 -2.28 -2.22

Competitive Comparison

For the Oil & Gas E&P subindustry, ConocoPhillips's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

ConocoPhillips Beneish M-Score Distribution

For the Oil & Gas industry and Energy sector, ConocoPhillips's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where ConocoPhillips's Beneish M-Score falls into.



ConocoPhillips Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 ConocoPhillips 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 * 0.8066+0.528 * 0.5197+0.404 * 0.9385+0.892 * 2.2342+0.115 * 1.1859
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.3644+4.679 * -0.1134-0.327 * 0.9641
=-2.22

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $8,153 Mil.
Revenue was 21161 + 17762 + 15120 + 11326 = $65,369 Mil.
Gross Profit was 8376 + 7607 + 5296 + 4086 = $25,365 Mil.
Total Current Assets was $18,860 Mil.
Total Assets was $93,693 Mil.
Property, Plant and Equipment(Net PPE) was $64,008 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,132 Mil.
Selling, General, & Admin. Expense(SGA) was $574 Mil.
Total Current Liabilities was $12,216 Mil.
Long-Term Debt & Capital Lease Obligation was $16,295 Mil.
Net Income was 5145 + 5759 + 2627 + 2379 = $15,910 Mil.
Non Operating Income was 810 + 1639 + 63 + 372 = $2,884 Mil.
Cash Flow from Operations was 7914 + 5068 + 5868 + 4797 = $23,647 Mil.
Total Receivables was $4,524 Mil.
Revenue was 9556 + 9826 + 5491 + 4386 = $29,259 Mil.
Gross Profit was 3312 + 2074 + 341 + 173 = $5,900 Mil.
Total Current Assets was $17,172 Mil.
Total Assets was $85,403 Mil.
Property, Plant and Equipment(Net PPE) was $57,717 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,788 Mil.
Selling, General, & Admin. Expense(SGA) was $705 Mil.
Total Current Liabilities was $8,150 Mil.
Long-Term Debt & Capital Lease Obligation was $18,805 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(8153 / 65369) / (4524 / 29259)
=0.12472273 / 0.15461909
=0.8066

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)
=(5900 / 29259) / (25365 / 65369)
=0.20164736 / 0.38802796
=0.5197

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (18860 + 64008) / 93693) / (1 - (17172 + 57717) / 85403)
=0.11553691 / 0.12311043
=0.9385

4. SGI = Sales Growth Index

Ratio of Revenue 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
=65369 / 29259
=2.2342

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(7788 / (7788 + 57717)) / (7132 / (7132 + 64008))
=0.11889169 / 0.10025302
=1.1859

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(574 / 65369) / (705 / 29259)
=0.00878092 / 0.02409515
=0.3644

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((16295 + 12216) / 93693) / ((18805 + 8150) / 85403)
=0.30430235 / 0.31562123
=0.9641

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
=(15910 - 2884 - 23647) / 93693
=-0.1134

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

ConocoPhillips has a M-score of -2.22 suggests that the company is unlikely to be a manipulator.


ConocoPhillips Beneish M-Score Related Terms

Thank you for viewing the detailed overview of ConocoPhillips's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


ConocoPhillips Business Description

ConocoPhillips logo
Address
925 North Eldridge Parkway, Houston, TX, USA, 77079
ConocoPhillips is a U.S.-based independent exploration and production firm. At the end of 2020, it produced 727,000 barrels per day of oil and natural gas liquids and 2.4 billion cubic feet per day of natural gas, primarily from Alaska and the Lower 48 in the United States and Norway in Europe and several countries in Asia-Pacific and the Middle East. Proven reserves at year-end 2020 were 4.5 billion barrels of oil equivalent.
Executives
Harper Jack F officer: Executive Vice President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Haynes Welsh Kontessa S officer: Chief Accounting Officer SHIPPING & RECEIVING 16930 PARK ROW DR. HOUSTON TX 77084
Sirdashney Heather G officer: Vice President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Leach Timothy A director, officer: Executive Vice President 7220 MEADOW ROAD DALLAS TX 75230
Mullins Eric D. director HERITAGE PLAZA, 1111 BAGBY STREET SUITE 4600 HOUSTON TX 77002
Olds Nicholas G officer: Senior Vice President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Walker R A director 1201 LAKE ROBBINS DRIVE THE WOODLANDS TX 77380
Seaton David Thomas director 6700 LAS COLINAS BOULEVARD IRVING TX 75039
Macklon Dominic E. officer: President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Bullock William L. Jr. officer: President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Hatfield Michael D. officer: President SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Brooks Catherine A. officer: VP & Controller SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Mcraven William H. director SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Rose Kelly Brunetti officer: SVP & General Counsel SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Joerres Jeffrey A director 5301 NORTH IRONWOOD ROAD MILWAUKEE WI 53217

ConocoPhillips Headlines

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