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Energy Company of Minas Gerais (NYSE:CIG)
Beneish M-Score
0.00 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Energy Company of Minas Gerais has a M-score of signals that the company is a manipulator.

CIG' s 10-Year Beneish M-Score Range
Min: -4.14   Max: 0.82
Current: 0

-4.14
0.82

During the past 13 years, the highest Beneish M-Score of Energy Company of Minas Gerais was 0.82. The lowest was -4.14. And the median was -2.43.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Energy Company of Minas Gerais 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1,331 Mil.
Revenue was 2132.00716525 + 1661.35792121 + 1620.65813528 + 1527.08703375 = $6,941 Mil.
Gross Profit was 884.430810569 + 673.093042749 + 415.904936015 + 404.973357016 = $2,378 Mil.
Total Current Assets was $3,042 Mil.
Total Assets was $14,209 Mil.
Property, Plant and Equipment(Net PPE) was $2,582 Mil.
Depreciation, Depletion and Amortization(DDA) was $353 Mil.
Selling, General & Admin. Expense(SGA) was $394 Mil.
Total Current Liabilities was $3,018 Mil.
Long-Term Debt was $3,184 Mil.
Net Income was 559.824899239 + 348.700754401 + 360.603290676 + 273.978685613 = $1,543 Mil.
Non Operating Income was 84.2727272727 + 119.446772842 + 143.053016453 + 99.4671403197 = $446 Mil.
Cash Flow from Operations was 276.757725034 + 360.854987427 + 326.325411335 + 694.937833037 = $1,659 Mil.
Accounts Receivable was $0 Mil.
Revenue was 1837.87806097 + 1878.20512821 + 1809.35960591 + 1705.91133005 = $7,231 Mil.
Gross Profit was 674.860569715 + 677.021696252 + 489.162561576 + 526.600985222 = $2,368 Mil.
Total Current Assets was $0 Mil.
Total Assets was $0 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $360 Mil.
Selling, General & Admin. Expense(SGA) was $381 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(1330.94491715 / 6941.11025549) / (0 / 7231.35412514)
=0.19174813 / 0
=

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)
=(673.093042749 / 7231.35412514) / (884.430810569 / 6941.11025549)
=0.32741389 / 0.34265443
=

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3041.64800717 + 2582.17644425) / 14208.6878639) / (1 - (0 + 0) / 0)
=0.60419818 / 1
=

4. SGI = Sales Growth Index

Ratio of sales 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
=6941.11025549 / 7231.35412514
=

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(360.168584347 / (360.168584347 + 0)) / (353.453903244 / (353.453903244 + 2582.17644425))
=1 / 0.12040137
=

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(394.345700678 / 6941.11025549) / (380.896504833 / 7231.35412514)
=0.05681306 / 0.05267292
=

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((3183.60949395 + 3017.91312136) / 14208.6878639) / ((0 + 0) / 0)
=0.43645991 / 0
=

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
=(1543.10762993 - 446.239656887 - 1658.87595683) / 14208.6878639
=-0.0396

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Energy Company of Minas Gerais has a M-score of signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Energy Company of Minas Gerais Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.77791.64420.99231.17510.69451.22640.87110.87511.7250.5311
GMI 0.97260.86251.03471.09371.08581.67511.12780.95171.16160.9617
AQI 0.96020.88311.05960.86670.9862.2641.16121.04451.01251.0721
SGI 1.34581.16471.21941.31761.11251.15171.20671.07170.79010.8794
DEPI 1.11071.07780.91680.95211.14350.5271.02480.96340.91790.8948
SGAI 0.90470.84415.45960.59210.37510.56320.66561.38890.82551.1638
LVGI 1.02521.22721.04490.97860.96541.19571.06971.04440.9350.8572
TATA 0.01040.0002-0.0718-0.0612-0.0663-0.0144-0.0334-0.040.0177-0.0462
M-score -2.34-1.90-3.38-2.25-2.80-1.38-2.40-2.81-1.79-3.22

Energy Company of Minas Gerais Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.79970.77440.83221.68050.71980.69590.5363
GMI 0.70250.95980.95811.00581.56031.51291.4974
AQI 1.04451.08881.04071.01251.0241.06721.0721
SGI 1.17271.08170.89330.8110.81580.83970.8708
DEPI 0.8890.87441.10410.94860.80620.75450.8576
SGAI 6.56461.14470.98771.16650.29440.32040.2778
LVGI 1.04441.03941.05780.9350.82010.80890.8572
TATA -0.0429-0.0446-0.01190.02160.00070.0034-0.0484
M-score -3.83-2.86-2.80-1.93-2.44-2.44-2.80
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