Exxon Beneish M Score

XOM
 Stock
  

USD 88.12  3.38  3.69%   

This module uses fundamental data of Exxon to approximate the value of its Beneish M Score. Exxon M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Exxon Piotroski F Score and Exxon Altman Z Score analysis.
  
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Exxon Long Term Debt to Equity is relatively stable at the moment as compared to the past year. The company's current value of Long Term Debt to Equity is estimated at 0.28. Exxon Receivables Turnover is relatively stable at the moment as compared to the past year. The company's current value of Receivables Turnover is estimated at 12.37. Inventory Turnover is expected to hike to 13.83 this year, although the value of Cash Flow Per Share will most likely fall to 11.04.
At this time, it appears that Exxon Mobil Corp is an unlikely manipulator. The earnings manipulation may begin if Exxon's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Exxon executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Exxon's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.25
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.95Focus
Asset Quality1.7Focus
Expense Coverage0.97Focus
Gross Margin Strengs0.92Focus
Accruals Factor0.97Focus
Depreciation Resistance1.04Focus
Net Sales Growth1.2Focus
Financial Leverage Condition1.02Focus

Exxon Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Exxon's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues341.6 B285.6 B
Fairly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense14.4 B12.4 B
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations47.6 B48.1 B
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion16.2 B20.1 B
Significantly Down
Increasing
Slightly volatile
Total Assets320.8 B338.9 B
Notably Down
Increasing
Stable
Investments28.1 B31.6 B
Fairly Down
Increasing
Stable
Investments Current199.5 M194.3 M
Fairly Up
Decreasing
Slightly volatile
Investments Non Current28.1 B31.6 B
Fairly Down
Increasing
Stable
Property Plant and Equipment Net185 B219.8 B
Fairly Down
Increasing
Stable
Trade and Non Trade Receivables21.8 B19.3 B
Moderately Up
Decreasing
Slightly volatile
Total Liabilities160.2 B170.3 B
Notably Down
Decreasing
Very volatile
Current Assets62.1 B59.2 B
Sufficiently Up
Decreasing
Slightly volatile
Assets Non Current220.8 B260 B
Fairly Down
Increasing
Stable
Current Liabilities65.2 B56.6 B
Fairly Up
Decreasing
Slightly volatile
Liabilities Non Current82.3 B98 B
Fairly Down
Increasing
Slightly volatile
Total Debt41.5 B38.5 B
Significantly Up
Increasing
Slightly volatile
Debt Current13.4 B12.4 B
Significantly Up
Increasing
Slightly volatile
Debt Non Current28.1 B26 B
Significantly Up
Increasing
Slightly volatile
Operating Income37.3 B32.2 B
Fairly Up
Decreasing
Slightly volatile
Gross Margin30.4533.0629
Significantly Down
Increasing
Slightly volatile

Exxon Mobil Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Exxon's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Exxon in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Exxon's degree of accounting gimmicks and manipulations.

About Exxon Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

56.77 Billion

Share
Exxon Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 56.77 Billion

Exxon Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Exxon. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues244.36 B290.21 B264.94 B181.5 B285.64 B341.57 B
Total Assets348.69 B346.2 B362.6 B332.75 B338.92 B320.83 B
Current Assets47.13 B47.97 B50.05 B44.89 B59.15 B62.1 B
Total Liabilities161 B154.4 B170.95 B175.6 B170.35 B160.16 B
Current Liabilities57.77 B57.14 B63.99 B56.36 B56.64 B65.23 B
Operating Income19.27 B31.72 B20.89 B(27.73 B)32.18 B37.32 B
Gross Margin33.5633.5531.8231.4433.0630.45

About Exxon Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Exxon Mobil Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Exxon using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Exxon Mobil Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States and internationally. The company was founded in 1870 and is headquartered in Irving, Texas. Exxon operates under Oil Gas Integrated classification in the United States and is traded on New York Stock Exchange. It employs 63000 people.

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Check out Exxon Piotroski F Score and Exxon Altman Z Score analysis. Note that the Exxon Mobil Corp information on this page should be used as a complementary analysis to other Exxon's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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When running Exxon Mobil Corp price analysis, check to measure Exxon's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Exxon is operating at the current time. Most of Exxon's value examination focuses on studying past and present price action to predict the probability of Exxon's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Exxon's price. Additionally, you may evaluate how the addition of Exxon to your portfolios can decrease your overall portfolio volatility.
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Is Exxon's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Exxon. If investors know Exxon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Exxon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.0
Market Capitalization
375.1 B
Quarterly Revenue Growth YOY
0.53
Return On Assets
0.061
Return On Equity
0.16
The market value of Exxon Mobil Corp is measured differently than its book value, which is the value of Exxon that is recorded on the company's balance sheet. Investors also form their own opinion of Exxon's value that differs from its market value or its book value, called intrinsic value, which is Exxon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Exxon's market value can be influenced by many factors that don't directly affect Exxon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Exxon's value and its price as these two are different measures arrived at by different means. Investors typically determine Exxon value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Exxon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.