Marathon Petroleum (WBO:MPC) Beneish M-Score

: -2.92 (As of Today)

View and export this data going back to 2021. Start your Free Trial

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 -2.92 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:MPC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92 Med: -2.64 Max: 0.94
Current: -2.92

During the past 13 years, the highest Beneish M-Score of Marathon Petroleum was 0.94. The lowest was -2.92. And the median was -2.64.

Marathon Petroleum Beneish M-Score Historical Data

The historical data trend for Marathon Petroleum'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.

Marathon Petroleum Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.70

0.94

-1.84

-2.68

-2.92

Marathon Petroleum Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score																-2.68	-3.09	-3.14	-3.04	-2.92

Competitive Comparison

For the Oil & Gas Refining & Marketing subindustry, Marathon Petroleum'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.

Marathon Petroleum Beneish M-Score Distribution

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

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

Marathon Petroleum 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 Marathon Petroleum for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0296

0.528 * 1.1478

0.404 * 1.0291

0.892 * 0.8134

0.115 * 0.9587

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3112

4.679 * -0.074448

0.327 * 1.0399

-2.95

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €10,655 Mil.
Revenue was 33245.835 + 38339.229 + 33544.589 + 32562.976 = €137,693 Mil.
Gross Profit was 2608.865 + 4819.928 + 3458.481 + 4455.18 = €15,342 Mil.
Total Current Assets was €29,464 Mil.
Total Assets was €78,850 Mil.
Property, Plant and Equipment(Net PPE) was €33,328 Mil.
Depreciation, Depletion and Amortization(DDA) was €3,068 Mil.
Selling, General, & Admin. Expense(SGA) was €2,819 Mil.
Total Current Liabilities was €18,478 Mil.
Long-Term Debt & Capital Lease Obligation was €23,927 Mil.
Net Income was 1330.567 + 3073.36 + 2054.598 + 2544.216 = €9,003 Mil.
Non Operating Income was 458.5 + 642.782 + 443.963 + 190.536 = €1,736 Mil.
Cash Flow from Operations was 1029.791 + 4640.961 + 3677.232 + 3789.238 = €13,137 Mil.

Total Receivables was €12,722 Mil.
Revenue was 37583.472 + 46244.87 + 50890.07 + 34556.664 = €169,275 Mil.
Gross Profit was 5136.304 + 6233.72 + 8295.474 + 1983.98 = €21,649 Mil.
Total Current Assets was €33,268 Mil.
Total Assets was €84,869 Mil.
Property, Plant and Equipment(Net PPE) was €34,806 Mil.
Depreciation, Depletion and Amortization(DDA) was €3,060 Mil.
Selling, General, & Admin. Expense(SGA) was €2,643 Mil.
Total Current Liabilities was €18,899 Mil.
Long-Term Debt & Capital Lease Obligation was €24,992 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)
	=	(10654.623 / 137692.629)	/	(12722.288 / 169275.076)
	=	0.07738	/	0.075157
	=	1.0296

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)
	=	(21649.478 / 169275.076)	/	(15342.454 / 137692.629)
	=	0.127895	/	0.111425
	=	1.1478

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 - (29464.127 + 33328.365) / 78850.079)	/	(1 - (33268.448 + 34806.224) / 84869.376)
	=	0.203647	/	0.197889
	=	1.0291

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
	=	137692.629	/	169275.076
	=	0.8134

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))
	=	(3060.022 / (3060.022 + 34806.224))	/	(3068.023 / (3068.023 + 33328.365))
	=	0.080811	/	0.084295
	=	0.9587

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)
	=	(2819.214 / 137692.629)	/	(2643.44 / 169275.076)
	=	0.020475	/	0.015616
	=	1.3112

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)
	=	((23927.281 + 18477.55) / 78850.079)	/	((24992.4 + 18898.88) / 84869.376)
	=	0.537791	/	0.517163
	=	1.0399

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
	=	(9002.741 - 1735.781	-	13137.222)	/	78850.079
	=	-0.074448

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.

Marathon Petroleum has a M-score of -2.95 suggests that the company is unlikely to be a manipulator.

Marathon Petroleum Beneish M-Score Related Terms

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

Marathon Petroleum (WBO:MPC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Marathon Petroleum Corp (WBO:MPC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

MPC:USA MPC:Mexico MPN:Germany M1PC34:Brazil

Address

539 South Main Street, Findlay, OH, USA, 45840-3229

Website

https://www.marathonpetroleum.com

Marathon Petroleum is an independent refiner with 13 refineries in the midcontinent, West Coast, and Gulf Coast of the United States with total throughput capacity of 2.9 million barrels per day. Its Dickinson, North Dakota, facility produces 184 million gallons a year of renewable diesel. Its Martinez, California, facility will have the ability to produce 730 million gallons a year of renewable diesel once converted. The firm also owns and operates midstream assets primarily through its listed master limited partnership, MPLX.