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Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-3.98 (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.

Consol Energy Inc has a M-score of -3.98 suggests that the company is not a manipulator.

CNX' s Beneish M-Score Range Over the Past 10 Years
Min: -4.61   Max: -1.25
Current: -3.98

-4.61
-1.25

During the past 13 years, the highest Beneish M-Score of Consol Energy Inc was -1.25. The lowest was -4.61. And the median was -2.79.


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 Consol Energy Inc 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 * 0.771+0.528 * 1.0573+0.404 * 1.6311+0.892 * 0.8939+0.115 * 0.8127
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 6.6927+4.679 * -0.1045-0.327 * 0.9653
=-3.98

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $164 Mil.
Revenue was 745.578 + 285.8 + 558.514 + 1087.045 = $2,677 Mil.
Gross Profit was 415.104 + -73.036 + 192.446 + 442.956 = $977 Mil.
Total Current Assets was $515 Mil.
Total Assets was $9,565 Mil.
Property, Plant and Equipment(Net PPE) was $8,415 Mil.
Depreciation, Depletion and Amortization(DDA) was $664 Mil.
Selling, General & Admin. Expense(SGA) was $173 Mil.
Total Current Liabilities was $1,070 Mil.
Long-Term Debt was $2,764 Mil.
Net Income was 25.345 + -469.828 + -97.572 + 30.406 = $-512 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 162.897 + 95.299 + 128.442 + 101.566 = $488 Mil.
Accounts Receivable was $238 Mil.
Revenue was 720.933 + 545.574 + 792.654 + 935.665 = $2,995 Mil.
Gross Profit was 450.925 + 209.086 + 369.796 + 126.426 = $1,156 Mil.
Total Current Assets was $970 Mil.
Total Assets was $11,185 Mil.
Property, Plant and Equipment(Net PPE) was $9,759 Mil.
Depreciation, Depletion and Amortization(DDA) was $617 Mil.
Selling, General & Admin. Expense(SGA) was $29 Mil.
Total Current Liabilities was $1,868 Mil.
Long-Term Debt was $2,777 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)
=(163.955 / 2676.937) / (237.896 / 2994.826)
=0.06124724 / 0.07943567
=0.771

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)
=(1156.233 / 2994.826) / (977.47 / 2676.937)
=0.38607685 / 0.36514494
=1.0573

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 - (514.915 + 8414.619) / 9565.494) / (1 - (970.461 + 9758.98) / 11185.366)
=0.0664848 / 0.04076085
=1.6311

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
=2676.937 / 2994.826
=0.8939

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))
=(617.098 / (617.098 + 9758.98)) / (664.388 / (664.388 + 8414.619))
=0.05947315 / 0.07317849
=0.8127

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)
=(172.985 / 2676.937) / (28.916 / 2994.826)
=0.0646205 / 0.00965532
=6.6927

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)
=((2763.809 + 1070.242) / 9565.494) / ((2776.678 + 1867.703) / 11185.366)
=0.40082101 / 0.4152194
=0.9653

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
=(-511.649 - 0 - 488.204) / 9565.494
=-0.1045

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.

Consol Energy Inc has a M-score of -3.98 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 local exchange's currency.

Consol Energy Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.12550.62050.9761.60861.08711.22341.19890.79510.69470.9195
GMI 1.00491.19140.9170.82561.06460.7970.96061.35830.85310.7871
AQI 1.14460.72090.93371.00810.80641.51750.93870.45520.76961.2204
SGI 0.9750.95971.25831.03021.13290.83590.84020.89731.12940.8357
DEPI 1.01371.11150.97110.95251.25811.21091.09710.79960.89450.8934
SGAI 1.15851.24220.91091.01871.45590.71894.12890.54680.9540.921
LVGI 0.90021.11381.10790.91031.64330.9070.96251.07161.00091.0769
TATA -0.0451-0.1037-0.1071-0.067-0.065-0.0715-0.02610.0001-0.0582-0.0744
M-score -2.53-3.43-2.87-2.27-2.89-2.55-3.12-2.76-3.09-3.10

Consol Energy Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.49540.36410.69470.70460.86110.95780.91020.77910.86530.771
GMI 1.31181.53350.6990.93451.03540.9570.82070.8370.90881.0573
AQI 0.72620.50630.76960.91050.85851.11121.22041.09241.58521.6311
SGI 1.43271.71341.12941.03630.89350.82810.84420.82020.83970.8939
DEPI 0.58930.49990.89450.89780.88370.92040.89340.84170.84130.8127
SGAI 0.2290.18561.16450.98310.60260.15680.66970.85361.41256.6927
LVGI 1.02781.03661.00091.02341.13621.07511.07691.05930.93570.9653
TATA -0.0049-0.0079-0.0582-0.0458-0.01220.01510.0015-0.012-0.0872-0.1045
M-score -2.45-2.31-3.21-3.02-2.79-2.47-2.68-2.96-3.03-3.98
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