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PSX (Phillips 66) Beneish M-Score : -2.62 (As of Oct. 31, 2024)


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What is Phillips 66 Beneish M-Score?

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 -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Phillips 66's Beneish M-Score or its related term are showing as below:

PSX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36   Med: -2.56   Max: -1.29
Current: -2.62

During the past 13 years, the highest Beneish M-Score of Phillips 66 was -1.29. The lowest was -3.36. And the median was -2.56.


Phillips 66 Beneish M-Score Historical Data

The historical data trend for Phillips 66'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.

Phillips 66 Beneish M-Score Chart

Phillips 66 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.31 -2.90 -2.58 -2.54 -2.64

Phillips 66 Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial 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 -3.02 -2.64 -2.30 -2.43 -2.62

Competitive Comparison of Phillips 66's Beneish M-Score

For the Oil & Gas Refining & Marketing subindustry, Phillips 66'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.


Phillips 66's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Phillips 66's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Phillips 66's Beneish M-Score falls into.



Phillips 66 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 Phillips 66 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 * 0.8816+0.528 * 1.4145+0.404 * 1.058+0.892 * 0.9888+0.115 * 0.9552
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1992+4.679 * -0.048109-0.327 * 0.9914
=-2.62

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $10,440 Mil.
Revenue was 35528 + 38129 + 35811 + 38270 = $147,738 Mil.
Gross Profit was 2791 + 3004 + 2921 + 3908 = $12,624 Mil.
Total Current Assets was $19,307 Mil.
Total Assets was $75,080 Mil.
Property, Plant and Equipment(Net PPE) was $35,597 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,062 Mil.
Selling, General, & Admin. Expense(SGA) was $2,961 Mil.
Total Current Liabilities was $15,922 Mil.
Long-Term Debt & Capital Lease Obligation was $18,476 Mil.
Net Income was 346 + 1015 + 748 + 1260 = $3,369 Mil.
Non Operating Income was 605 + 556 + 453 + 184 = $1,798 Mil.
Cash Flow from Operations was 1132 + 2097 + -236 + 2190 = $5,183 Mil.
Total Receivables was $11,976 Mil.
Revenue was 39643 + 35090 + 34396 + 40279 = $149,408 Mil.
Gross Profit was 4825 + 4024 + 4579 + 4631 = $18,059 Mil.
Total Current Assets was $22,496 Mil.
Total Assets was $77,786 Mil.
Property, Plant and Equipment(Net PPE) was $35,533 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,961 Mil.
Selling, General, & Admin. Expense(SGA) was $2,497 Mil.
Total Current Liabilities was $17,416 Mil.
Long-Term Debt & Capital Lease Obligation was $18,531 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)
=(10440 / 147738) / (11976 / 149408)
=0.070666 / 0.080156
=0.8816

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)
=(18059 / 149408) / (12624 / 147738)
=0.12087 / 0.085449
=1.4145

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 - (19307 + 35597) / 75080) / (1 - (22496 + 35533) / 77786)
=0.268727 / 0.253992
=1.058

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
=147738 / 149408
=0.9888

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))
=(1961 / (1961 + 35533)) / (2062 / (2062 + 35597))
=0.052302 / 0.054755
=0.9552

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)
=(2961 / 147738) / (2497 / 149408)
=0.020042 / 0.016713
=1.1992

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)
=((18476 + 15922) / 75080) / ((18531 + 17416) / 77786)
=0.458151 / 0.462127
=0.9914

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
=(3369 - 1798 - 5183) / 75080
=-0.048109

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.

Phillips 66 has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.


Phillips 66 Beneish M-Score Related Terms

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Phillips 66 Business Description

Traded in Other Exchanges
Address
2331 CityWest Boulevard, Houston, TX, USA, 77042
Phillips 66 is an independent refiner with 12 refineries that have a total crude throughput capacity of 1.8 million barrels per day, or mmb/d. In 2023, the Rodeo, California, facility ceased operations and be converted to produce renewable diesel. The midstream segment comprises extensive transportation and NGL processing assets and includes DCP Midstream, which holds 600 mbd of NGL fractionation and 22,000 miles of pipeline. Its CPChem chemical joint venture operates facilities in the United States and the Middle East and primarily produces olefins and polyolefins.
Executives
Kevin J Mitchell officer: Exec. VP, Finance and CFO 3010 BRIARPARK DRIVE, HOUSTON TX 77042
Timothy D. Roberts officer: Executive Vice President C/O PHILLIPS 66 PARTNERS LP, 3010 BRIARPARK DRIVE, HOUSTON TX 77042
Joseph Scott Pruitt officer: Vice President and Controller 2331 CITYWEST BLVD., HOUSTON TX 77042
Richard G Harbison officer: Senior VP, Refining 2331 CITYWEST BLVD., HOUSTON TX 77042
Zhanna Golodryga officer: Executive Vice President PO BOX 10247, BIRMINGHAM AL 35202-0247
Vanessa Allen Sutherland officer: EVP, GC and Secretary 650 W PEACHTREE ST NW, ATLANTA GA 30308
Greg C. Garland officer: Chairman, Pres. and CEO-Desig 2331 CITYWEST BLVD., HOUSTON TX 77042
Brian Mandell officer: Senior Vice President 370 17TH STREET, SUITE 2500, DENVER CO 80202
Gregory Hayes director 870 WINTER STREET, WALTHAM MA 02451
Paula Ann Johnson officer: SVP, Gen Counsel & Sec (Desig) 600 N. DAIRY ASHFORD, HOUSTON TX 77079
Robert A Herman officer: Executive Vice President 3010 BRIARPARK DRIVE, 9TH FLOOR, HOUSTON TX 77042
Douglas T Terreson director 2331 CITYWEST BLVD., HOUSTON TX 77042
Denise R Singleton director 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Mark E Lashier officer: President and COO 2331 CITYWEST BLVD., HOUSTON TX 77042
Charles M Holley director