Switch to:
Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-3.03 (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 -3.03 suggests that the company is not a manipulator.

CNX' s 10-Year Beneish M-Score Range
Min: -3.81   Max: -1.32
Current: -3.03

-3.81
-1.32

During the past 13 years, the highest Beneish M-Score of Consol Energy Inc was -1.32. The lowest was -3.81. And the median was -2.78.


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 * 0.6859+0.528 * 0.9494+0.404 * 0.9105+0.892 * 1.0646+0.115 * 0.8778
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9278+4.679 * -0.0521-0.327 * 1.0234
=-3.03

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $260 Mil.
Revenue was 889.592 + 935.665 + 884.616 + 937.37 = $3,647 Mil.
Gross Profit was 413.492 + 422.425 + 389.079 + 436.506 = $1,662 Mil.
Total Current Assets was $933 Mil.
Total Assets was $11,781 Mil.
Property, Plant and Equipment(Net PPE) was $10,367 Mil.
Depreciation, Depletion and Amortization(DDA) was $593 Mil.
Selling, General & Admin. Expense(SGA) was $445 Mil.
Total Current Liabilities was $1,908 Mil.
Long-Term Debt was $2,601 Mil.
Net Income was 79.03 + 73.666 + -1.645 + -24.935 = $126 Mil.
Non Operating Income was -67.734 + 0 + -20.99 + 0 = $-89 Mil.
Cash Flow from Operations was 228.37 + 86.609 + 293.024 + 221.045 = $829 Mil.
Accounts Receivable was $356 Mil.
Revenue was 969.153 + 825.23 + 803.345 + 828.167 = $3,426 Mil.
Gross Profit was 479.602 + 320.367 + 326.085 + 355.633 = $1,482 Mil.
Total Current Assets was $1,459 Mil.
Total Assets was $11,584 Mil.
Property, Plant and Equipment(Net PPE) was $9,605 Mil.
Depreciation, Depletion and Amortization(DDA) was $479 Mil.
Selling, General & Admin. Expense(SGA) was $451 Mil.
Total Current Liabilities was $1,170 Mil.
Long-Term Debt was $3,161 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)
=(259.66 / 3647.243) / (355.606 / 3425.895)
=0.0711935 / 0.10379945
=0.6859

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)
=(422.425 / 3425.895) / (413.492 / 3647.243)
=0.43249633 / 0.45555012
=0.9494

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 - (932.714 + 10366.581) / 11781.396) / (1 - (1458.836 + 9604.991) / 11584.475)
=0.04092053 / 0.0449436
=0.9105

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
=3647.243 / 3425.895
=1.0646

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))
=(478.66 / (478.66 + 9604.991)) / (592.669 / (592.669 + 10366.581))
=0.04746892 / 0.05407934
=0.8778

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)
=(445.314 / 3647.243) / (450.818 / 3425.895)
=0.12209606 / 0.13159131
=0.9278

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)
=((2600.535 + 1907.984) / 11781.396) / ((3161.341 + 1170.347) / 11584.475)
=0.38268122 / 0.37392182
=1.0234

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
=(126.116 - -88.724 - 829.048) / 11781.396
=-0.0521

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 -3.03 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.

Consol Energy Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.80431.12550.62050.9761.60861.08710.87541.67550.79510.6917
GMI 0.72881.00491.19140.9170.82561.06460.90441.06040.85530.8943
AQI 0.84481.14460.72090.93371.00810.80641.51750.93870.45520.825
SGI 1.37230.9750.95971.25831.03021.13291.16830.60120.89731.1294
DEPI 1.17421.01371.11150.97110.95251.25810.84951.56370.86390.875
SGAI 0.8071.15851.24220.91091.01871.45590.75590.79296.05920.927
LVGI 0.89690.90021.11381.10790.91031.64330.9070.96251.07161.0006
TATA -0.0518-0.0753-0.0987-0.1022-0.067-0.065-0.0715-0.02610.0001-0.0577
M-score -1.77-2.67-3.40-2.84-2.27-2.89-2.57-2.22-3.97-3.05

Consol Energy Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.67551.85972.24332.78260.79510.73240.49540.36410.69170.6859
GMI 1.08541.08511.06650.81610.99740.76080.76420.91250.76860.9494
AQI 0.93870.71540.67870.99090.45520.61470.72620.50630.8250.9105
SGI 0.60120.50890.4150.3780.89731.10741.43271.71341.12941.0646
DEPI 1.56371.74511.9572.15490.86390.75710.63230.53420.8750.8778
SGAI 0.61661.82063.49735.85065.57552.32371.2940.86790.99490.9278
LVGI 0.96250.98761.03471.03671.07161.0421.02781.03661.00061.0234
TATA -0.0261-0.0379-0.0493-0.05610.00010.0044-0.0049-0.0061-0.064-0.0521
M-score -2.17-2.43-2.51-2.47-3.81-3.16-2.92-2.75-3.15-3.03
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK