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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 -3.81 suggests that the company is not a manipulator.

CIG' s 10-Year Beneish M-Score Range
Min: -3.58   Max: -1.69
Current: 0

-3.58
-1.69

During the past 13 years, the highest Beneish M-Score of Energy Company of Minas Gerais was -1.69. The lowest was -3.58. And the median was -2.65.


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+0.528 * 0.8617+0.404 * 0+0.892 * 0.8566+0.115 * 0.1239
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1866+4.679 * -0.327 * 0
=-3.81

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

This Year (Dec14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $0 Mil.
Revenue was 0 + 2118.85420394 + 2047.64387097 + 1688.96463571 = $5,855 Mil.
Gross Profit was 0 + 675.731663685 + 849.433978495 + 439.710268428 = $1,965 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 $579 Mil.
Selling, General & Admin. Expense(SGA) was $385 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $0 Mil.
Net Income was 0 + 331.338998211 + 537.672688172 + 354.495100128 = $1,224 Mil.
Non Operating Income was 0 + -24.7558139535 + 80.9380645161 + 287.175117171 = $343 Mil.
Cash Flow from Operations was 1413.37673644 + 699.910554562 + 265.806451613 + 366.851299531 = $2,746 Mil.
Accounts Receivable was $776 Mil.
Revenue was 1566.25441696 + 1582.60009204 + 1853.62600806 + 1833.01251203 = $6,835 Mil.
Gross Profit was 484.540636042 + 420.020708698 + 680.643145161 + 391.241578441 = $1,976 Mil.
Total Current Assets was $3,402 Mil.
Total Assets was $13,566 Mil.
Property, Plant and Equipment(Net PPE) was $2,597 Mil.
Depreciation, Depletion and Amortization(DDA) was $367 Mil.
Selling, General & Admin. Expense(SGA) was $379 Mil.
Total Current Liabilities was $2,678 Mil.
Long-Term Debt was $3,115 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)
=(0 / 5855.46271061) / (775.618374558 / 6835.4930291)
=0 / 0.11346927
=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)
=(675.731663685 / 6835.4930291) / (0 / 5855.46271061)
=0.28914462 / 0.33556288
=0.8617

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 - (0 + 0) / 0) / (1 - (3401.9434629 + 2597.17314488) / 13566.254417)
= / 0.55779124
=0

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
=5855.46271061 / 6835.4930291
=0.8566

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))
=(367.28137189 / (367.28137189 + 2597.17314488)) / (578.776535472 / (578.776535472 + 0))
=0.12389509 / 1
=0.1239

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)
=(384.784534191 / 5855.46271061) / (378.545265023 / 6835.4930291)
=0.06571377 / 0.05537937
=1.1866

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)
=((0 + 0) / 0) / ((3115.28268551 + 2677.56183746) / 13566.254417)
= / 0.42700397
=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
=(1223.50678651 - 343.357367733 - 2745.94504215) / 0
=

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 -3.81 suggests that the company will not 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.3621.09680.96110.69041.19480.87580.98671.86980.43180.8386
GMI 0.86251.17480.96331.08581.67511.12780.95171.16160.96170.9475
AQI 0.88311.05960.86670.9862.2641.16121.04451.01251.07211.1258
SGI 1.16831.22121.31341.08061.21631.1711.05330.79440.91611.1868
DEPI 1.07780.91680.95211.14350.5271.02480.96340.91790.89480.9829
SGAI 0.84411.44112.24340.37510.56320.66561.38890.82551.16380.6363
LVGI 1.22721.04490.97860.96541.19571.06971.04440.9350.85721.1889
TATA 0.0002-0.0718-0.0612-0.0663-0.0144-0.0334-0.040.0177-0.0593-0.0262
M-score -2.15-2.51-2.81-2.83-1.35-2.43-2.72-1.65-3.34-2.56

Energy Company of Minas Gerais Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Dec14
DSRI 10.97751.79340.7890.72730.45211.2818
GMI 0.87020.91791.03751.71111.71331.55480.95040.8879
AQI 1.07561.04071.01251.0241.06721.07211.11451.0869
SGI 0.93930.90530.82820.81790.83740.87510.95771.0481
DEPI 9.85181.08010.93440.83690.73280.88588.0440.9841
SGAI 1.43611.03461.20710.28160.30720.27511.11661.0227
LVGI 1.04471.05780.9350.82960.80890.85720.84881.0954
TATA -0.0253-0.01220.0209-0.0039-0.0008-0.0645-0.0576-0.0381
M-score -1.76-2.68-1.80-2.31-2.32-2.92-1.93-2.42
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