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Chevron Beneish M-Score

: -2.11 (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 -2.11 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CVX' s Beneish M-Score Range Over the Past 10 Years
Min: -6.48   Med: -2.75   Max: -0.79
Current: -2.11

During the past 13 years, the highest Beneish M-Score of Chevron was -0.79. The lowest was -6.48. And the median was -2.75.


Chevron Beneish M-Score Historical Data

The historical data trend for Chevron'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.

Chevron 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 -2.66 -2.79 -3.00 -3.05 -2.27

Chevron 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 -2.21 -2.40 -2.27 -2.16 -2.11

Competitive Comparison

For the Oil & Gas Integrated subindustry, Chevron'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.

   

Chevron Beneish M-Score Distribution

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

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



Chevron 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 Chevron 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 * 0.9629+0.528 * 0.9094+0.404 * 1.001+0.892 * 1.7762+0.115 * 0.9962
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5228+4.679 * -0.0793-0.327 * 0.8642
=-2.11

* 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 $26,860 Mil.
Revenue was 65372 + 52314 + 45861 + 42552 = $206,099 Mil.
Gross Profit was 21669 + 16011 + 13707 + 14414 = $65,801 Mil.
Total Current Assets was $51,188 Mil.
Total Assets was $257,936 Mil.
Property, Plant and Equipment(Net PPE) was $144,410 Mil.
Depreciation, Depletion and Amortization(DDA) was $16,804 Mil.
Selling, General, & Admin. Expense(SGA) was $3,758 Mil.
Total Current Liabilities was $39,121 Mil.
Long-Term Debt & Capital Lease Obligation was $23,005 Mil.
Net Income was 11622 + 6259 + 5055 + 6111 = $29,047 Mil.
Non Operating Income was 3403 + 1995 + 2182 + 2058 = $9,638 Mil.
Cash Flow from Operations was 13782 + 8055 + 9458 + 8579 = $39,874 Mil.
Total Receivables was $15,705 Mil.
Revenue was 36117 + 31076 + 24843 + 23997 = $116,033 Mil.
Gross Profit was 10966 + 9222 + 6970 + 6532 = $33,690 Mil.
Total Current Assets was $32,973 Mil.
Total Assets was $242,806 Mil.
Property, Plant and Equipment(Net PPE) was $151,208 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,521 Mil.
Selling, General, & Admin. Expense(SGA) was $4,047 Mil.
Total Current Liabilities was $28,147 Mil.
Long-Term Debt & Capital Lease Obligation was $39,521 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)
=(26860 / 206099) / (15705 / 116033)
=0.13032572 / 0.13534943
=0.9629

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)
=(33690 / 116033) / (65801 / 206099)
=0.29034844 / 0.3192689
=0.9094

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 - (51188 + 144410) / 257936) / (1 - (32973 + 151208) / 242806)
=0.24168011 / 0.2414479
=1.001

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
=206099 / 116033
=1.7762

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))
=(17521 / (17521 + 151208)) / (16804 / (16804 + 144410))
=0.10384107 / 0.10423412
=0.9962

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)
=(3758 / 206099) / (4047 / 116033)
=0.01823396 / 0.03487801
=0.5228

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)
=((23005 + 39121) / 257936) / ((39521 + 28147) / 242806)
=0.2408582 / 0.27869163
=0.8642

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
=(29047 - 9638 - 39874) / 257936
=-0.0793

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.

Chevron has a M-score of -2.11 suggests that the company is unlikely to be a manipulator.


Chevron Beneish M-Score Related Terms

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


Chevron Business Description

Chevron logo
Address
6001 Bollinger Canyon Road, San Ramon, CA, USA, 94583-2324
Chevron is an integrated energy company with exploration, production, and refining operations worldwide. It is the second- largest oil company in the United States with production of 3.1 million of barrels of oil equivalent a day, including 7.7 million cubic feet a day of natural gas and 1.8 million of barrels of liquids a day. Production activities take place in North America, South America, Europe, Africa, Asia, and Australia. Its refineries are in the U.S. and Asia for total refining capacity of 1.8 million barrels of oil a day. Proven reserves at year-end 2021 stood at 11.3 billion barrels of oil equivalent, including 6.1 billion barrels of liquids and 30.9 trillion cubic feet of natural gas.
Executives
Bonner Eimear P officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Hewson Marillyn A director C/O CARPENTER TECHNOLOGY CORPORATION PO BOX 14662 READING PA 19612-4662
Inchausti David A officer: Vice Pres. and Comptroller 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Parfitt Colin E officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Morris Rhonda J officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Reed Debra L director 488 8TH AVENUE SAN DIEGO CA 92101
Umpleby Iii Donald J director 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Nelson Mark A officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Frank John director C/O OAKTREE CAPITAL MANAGEMENT 333 SOUTH GRAND 28TH FLOOR LOS ANGELES CA 90071
Austin Wanda M director 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Moyo Dambisa F director 10200 S. DEANZA BOULEVARD CUPERTINO CA 95014
Ourada Jeanette L officer: Vice Pres. and Comptroller 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Thulin Inge G director 1250 5TH AVENUE SOUTH NAPLES FL 34102
Cummings Alexander B Jr director
Huntsman Jon M Jr director 500 HUNTSMAN WAY SALT LAKE CITY UT 84108

Chevron Headlines

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