Chevron Beneish M Score

CVX
 Stock
  

USD 182.49  0.82  0.45%   

This module uses fundamental data of Chevron Corp to approximate the value of its Beneish M Score. Chevron Corp 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. Continue to Chevron Corp Piotroski F Score and Chevron Corp Altman Z Score analysis.
  
Chevron Corp Total Debt is fairly stable at the moment as compared to the past year. Chevron Corp reported Total Debt of 31.37 Billion in 2021. Debt Current is likely to rise to about 262.7 M in 2022, whereas Issuance Repayment of Debt Securities is likely to drop (13.3 B) in 2022. Chevron Corp Revenue to Assets are fairly stable at the moment as compared to the past year. Chevron Corp reported Revenue to Assets of 0.68 in 2021. Quick Ratio is likely to rise to 1.03 in 2022, whereas Long Term Debt to Equity is likely to drop 0.19 in 2022.
At this time, it appears that Chevron Corp is an unlikely manipulator. The earnings manipulation may begin if Chevron Corp'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 Chevron Corp 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 Chevron Corp'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.
-3.63
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.82Focus
Asset Quality-1.35Focus
Expense Coverage0.85Focus
Gross Margin Strengs0.94Focus
Accruals Factor0.85Focus
Depreciation Resistance1.03Focus
Net Sales Growth1.15Focus
Financial Leverage Condition1.03Focus

Chevron Corp 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 Chevron Corp'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
Selling General and Administrative Expense3.9 BB
Fairly Down
Decreasing
Slightly volatile
Revenues187.1 B162.5 B
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables17.9 B19 B
Notably Down
Decreasing
Slightly volatile
Property Plant and Equipment Net171.2 B147 B
Fairly Up
Increasing
Slightly volatile
Operating Income23.8 B22.4 B
Notably Up
Decreasing
Slightly volatile
Net Cash Flow from Operations31.2 B29.2 B
Notably Up
Decreasing
Slightly volatile
Liabilities Non Current80.5 B72.8 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities31 B26.8 B
Fairly Up
Decreasing
Slightly volatile
Total Liabilities95.5 B100.5 B
Notably Down
Increasing
Stable
Investments Non Current39.5 B40.7 B
Sufficiently Down
Increasing
Slightly volatile
Investments Current35.9 M35 M
Fairly Up
Decreasing
Slightly volatile
Investments39.6 B40.7 B
Fairly Down
Increasing
Slightly volatile
Gross Margin42.4544.99
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion20.1 B17.9 B
Moderately Up
Increasing
Slightly volatile
Debt Non Current31.9 B31.1 B
Fairly Up
Increasing
Slightly volatile
Debt Current262.7 M256 M
Fairly Up
Increasing
Very volatile
Total Debt33.9 B31.4 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current229.1 B205.8 B
Moderately Up
Increasing
Slightly volatile
Current Assets40.2 B33.7 B
Fairly Up
Decreasing
Slightly volatile
Total Assets227.7 B239.5 B
Notably Down
Increasing
Slightly volatile

Chevron 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 Chevron Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Chevron Corp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Chevron Corp's degree of accounting gimmicks and manipulations.

About Chevron Corp 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

26.45 Billion

Chevron Corp Operating Expenses is fairly stable at the moment as compared to the past year. Chevron Corp reported Operating Expenses of 23.18 Billion in 2021

Chevron Corp 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 Chevron Corp. 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)
Revenues141.72 B166.34 B146.52 B94.69 B162.47 B187.12 B
Total Assets253.81 B253.86 B237.43 B239.79 B239.53 B227.74 B
Current Assets28.56 B34.02 B28.33 B26.08 B33.74 B40.24 B
Assets Non Current225.25 B219.84 B209.1 B213.71 B205.8 B229.11 B
Total Liabilities105.68 B99.31 B93.22 B108.1 B100.47 B95.49 B
Current Liabilities27.74 B27.17 B26.53 B22.18 B26.79 B31.01 B
Total Debt38.76 B34.46 B26.97 B44.31 B31.37 B33.94 B
Debt Current5.19 B5.73 B3.28 B1.55 B256 M262.74 M
Debt Non Current33.57 B28.73 B23.69 B42.77 B31.11 B31.89 B
Operating Income9.53 B21.32 B6.33 B(6.76 B)22.35 B23.77 B
Investments32.51 B35.6 B38.75 B39.08 B40.73 B39.57 B
Investments Current9 M53 M63 M31 M35 M35.92 M
Gross Margin46.5443.1445.3246.6844.9942.45

Chevron Corp ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Chevron Corp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Chevron Corp's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Chevron Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Chevron Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Chevron Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Chevron 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.
Chevron Corporation, through its subsidiaries, engages in integrated energy and chemicals operations worldwide. Chevron Corporation was founded in 1879 and is based in San Ramon, California. Chevron Corp operates under Oil Gas Integrated classification in the United States and is traded on New York Stock Exchange. It employs 42595 people.

Chevron Corp Investors Sentiment

The influence of Chevron Corp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Chevron. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Chevron Corp's public news can be used to forecast risks associated with investment in Chevron. The trend in average sentiment can be used to explain how an investor holding Chevron can time the market purely based on public headlines and social activities around Chevron Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Chevron Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Chevron Corp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Chevron Corp's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Chevron Corp.

Chevron Corp Implied Volatility

    
  54.02  
Chevron Corp's implied volatility exposes the market's sentiment of Chevron Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Chevron Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Chevron Corp stock will not fluctuate a lot when Chevron Corp's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Chevron Corp in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Chevron Corp's short interest history, or implied volatility extrapolated from Chevron Corp options trading.

Pair Trading with Chevron Corp

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Chevron Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chevron Corp will appreciate offsetting losses from the drop in the long position's value.

Moving together with Chevron Corp

+0.69SMSM Energy Downward RallyPairCorr
+0.93JPMJPMorgan Chase Fiscal Year End 13th of January 2023 PairCorr
The ability to find closely correlated positions to Chevron Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chevron Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Chevron Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Chevron Corp to buy it.
The correlation of Chevron Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Chevron Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chevron Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Chevron Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Chevron Corp Piotroski F Score and Chevron Corp Altman Z Score analysis. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

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When running Chevron Corp price analysis, check to measure Chevron Corp'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 Chevron Corp is operating at the current time. Most of Chevron Corp's value examination focuses on studying past and present price action to predict the probability of Chevron Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Chevron Corp's price. Additionally, you may evaluate how the addition of Chevron Corp to your portfolios can decrease your overall portfolio volatility.
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Is Chevron Corp'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 Chevron Corp. If investors know Chevron 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 Chevron Corp 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
0.81
Market Capitalization
354.5 B
Quarterly Revenue Growth YOY
0.49
Return On Assets
0.0924
Return On Equity
0.23
The market value of Chevron Corp is measured differently than its book value, which is the value of Chevron that is recorded on the company's balance sheet. Investors also form their own opinion of Chevron Corp's value that differs from its market value or its book value, called intrinsic value, which is Chevron Corp'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 Chevron Corp's market value can be influenced by many factors that don't directly affect Chevron Corp'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 Chevron Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Chevron Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chevron Corp'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.