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Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-3.08 (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 -3.08 suggests that the company is not a manipulator.

CNX' s 10-Year Beneish M-Score Range
Min: -3.81   Max: -1.77
Current: -3.08

-3.81
-1.77

During the past 13 years, the highest Beneish M-Score of Consol Energy Inc was -1.77. The lowest was -3.81. And the median was -2.85.


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 * 0.6917+0.528 * 0.8821+0.404 * 0.825+0.892 * 1.1294+0.115 * 0.875
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9054+4.679 * -0.064-0.327 * 1.0006
=-3.08

* 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 (Dec13) TTM:
Accounts Receivable was $260 Mil.
Revenue was 935.665 + 884.616 + 937.37 + 969.153 = $3,727 Mil.
Gross Profit was 422.425 + 389.079 + 436.506 + 257.389 = $1,505 Mil.
Total Current Assets was $1,166 Mil.
Total Assets was $11,760 Mil.
Property, Plant and Equipment(Net PPE) was $10,162 Mil.
Depreciation, Depletion and Amortization(DDA) was $571 Mil.
Selling, General & Admin. Expense(SGA) was $464 Mil.
Total Current Liabilities was $1,148 Mil.
Long-Term Debt was $3,276 Mil.
Net Income was 73.666 + -1.645 + -24.935 + 116.003 = $163 Mil.
Non Operating Income was 0 + -20.99 + 0 + 0 = $-21 Mil.
Cash Flow from Operations was 86.609 + 293.024 + 221.045 + 336.102 = $937 Mil.
Accounts Receivable was $333 Mil.
Revenue was 825.23 + 803.345 + 828.167 + 842.943 = $3,300 Mil.
Gross Profit was 320.367 + 326.085 + 355.633 + 173.619 = $1,176 Mil.
Total Current Assets was $1,446 Mil.
Total Assets was $11,394 Mil.
Property, Plant and Equipment(Net PPE) was $9,442 Mil.
Depreciation, Depletion and Amortization(DDA) was $461 Mil.
Selling, General & Admin. Expense(SGA) was $453 Mil.
Total Current Liabilities was $1,120 Mil.
Long-Term Debt was $3,164 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)
=(259.817 / 3726.804) / (332.574 / 3299.685)
=0.06971577 / 0.10078962
=0.6917

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)
=(389.079 / 3299.685) / (422.425 / 3726.804)
=0.35630795 / 0.40393833
=0.8821

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 - (1166.35 + 10162.472) / 11759.53) / (1 - (1445.592 + 9442.262) / 11393.667)
=0.03662629 / 0.04439422
=0.825

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
=3726.804 / 3299.685
=1.1294

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))
=(461.122 / (461.122 + 9442.262)) / (571.191 / (571.191 + 10162.472))
=0.04656206 / 0.05321492
=0.875

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)
=(463.685 / 3726.804) / (453.458 / 3299.685)
=0.12441894 / 0.13742463
=0.9054

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)
=((3275.878 + 1147.961) / 11759.53) / ((3163.559 + 1119.971) / 11393.667)
=0.37619182 / 0.3759571
=1.0006

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
=(163.089 - -20.99 - 936.78) / 11759.53
=-0.064

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 -3.08 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.96531.67551.85972.24332.78260.79510.73240.49540.36410.6917
GMI 1.14481.08541.08511.06650.81610.99740.8950.89091.0570.8821
AQI 0.74730.93870.71540.67870.99090.45520.61470.72620.50630.825
SGI 0.94120.60120.50890.4150.3780.89731.10741.43271.71341.1294
DEPI 1.09371.56371.74511.9572.15490.86390.75710.63230.53420.875
SGAI 0.67640.61661.82063.49735.85065.57552.08731.1710.78950.9054
LVGI 0.97540.96250.98761.03471.03671.07161.0421.02781.03661.0006
TATA -0.0296-0.0261-0.0379-0.0493-0.05610.00010.0044-0.0049-0.0061-0.064
M-score -2.65-2.17-2.43-2.51-2.47-3.81-3.05-2.83-2.66-3.08
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