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Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-2.98 (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 -2.98 suggests that the company is not a manipulator.

CNX' s 10-Year Beneish M-Score Range
Min: -3.65   Max: -2.01
Current: -2.98

-3.65
-2.01

During the past 13 years, the highest Beneish M-Score of Consol Energy Inc was -2.01. The lowest was -3.65. And the median was -2.75.


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 * 0.7462+0.528 * 1.1997+0.404 * 0.4552+0.892 * 0.8973+0.115 * 0.8639
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1116+4.679 * 0.0001-0.327 * 1.0716
=-2.98

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $613 Mil.
Revenue was -438.053 + 1231.418 + 1216.68 + 1289.64 = $3,300 Mil.
Gross Profit was -43.465 + 354.962 + 336.082 + 329.851 = $977 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 $90 Mil.
Total Current Liabilities was $1,120 Mil.
Long-Term Debt was $3,164 Mil.
Net Income was 738.183 + -63.651 + -12.526 + -1.564 = $660 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 69.771 + 195.611 + 125.114 + 268.28 = $659 Mil.
Accounts Receivable was $916 Mil.
Revenue was -363.82 + 1160.089 + 1454.487 + 1426.77 = $3,678 Mil.
Gross Profit was 10.358 + 293.849 + 540.133 + 462.574 = $1,307 Mil.
Total Current Assets was $1,539 Mil.
Total Assets was $12,998 Mil.
Property, Plant and Equipment(Net PPE) was $10,191 Mil.
Depreciation, Depletion and Amortization(DDA) was $427 Mil.
Selling, General & Admin. Expense(SGA) was $91 Mil.
Total Current Liabilities was $1,387 Mil.
Long-Term Debt was $3,173 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)
=(613.113 / 3299.685) / (915.692 / 3677.526)
=0.18580955 / 0.24899674
=0.7462

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)
=(354.962 / 3677.526) / (-43.465 / 3299.685)
=0.35537859 / 0.29621918
=1.1997

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 - (1445.592 + 9442.262) / 11393.667) / (1 - (1539.094 + 10190.967) / 12997.594)
=0.04439422 / 0.09752059
=0.4552

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
=3299.685 / 3677.526
=0.8973

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))
=(427.115 / (427.115 + 10190.967)) / (461.122 / (461.122 + 9442.262))
=0.04022525 / 0.04656206
=0.8639

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)
=(90.408 / 3299.685) / (90.644 / 3677.526)
=0.02739898 / 0.02464809
=1.1116

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)
=((3163.559 + 1119.971) / 11393.667) / ((3173.013 + 1387.099) / 12997.594)
=0.3759571 / 0.35084278
=1.0716

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
=(660.442 - 0 - 658.776) / 11393.667
=0.0001

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 -2.98 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 own currency.

Consol Energy Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.62591.53941.21550.79060.98871.11061.16631.49261.72410.7462
GMI 1.12340.72881.00491.19140.9170.82561.06460.90441.06041.1998
AQI 0.71040.84481.14460.72090.93371.00810.80641.51750.93870.4552
SGI 1.24941.37230.9750.95971.25831.03021.13291.16830.60120.8973
DEPI 0.91481.17421.01371.11150.97110.95251.25810.84951.56370.8639
SGAI 0.30350.8071.15851.24220.91091.01871.45590.75590.79291.1104
LVGI 0.91610.89690.90021.11381.10790.91031.64330.9070.96251.0716
TATA -0.0589-0.0518-0.0753-0.0987-0.1022-0.067-0.065-0.0715-0.02610.0001
M-score -2.79-2.01-2.59-3.25-2.83-2.73-2.82-2.00-2.17-2.98

Consol Energy Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.54421.49261.59921.4081.09221.72411.74821.93271.26990.7462
GMI 0.90330.90391.05121.03511.14481.08541.07661.22641.09511.1997
AQI 1.56981.51751.57991.49820.74730.93870.71540.67870.99090.4552
SGI 1.15941.16831.1131.03220.94120.60120.58240.55550.60430.8973
DEPI 0.78340.84950.88870.94431.09371.56371.54931.52071.44570.8639
SGAI 1.15121.08770.66190.78960.67640.61660.77560.89110.9171.1116
LVGI 0.91160.9070.92150.91150.97540.96250.98761.03471.03671.0716
TATA -0.0792-0.0715-0.0623-0.0387-0.0296-0.0261-0.0379-0.0493-0.05610.0001
M-score -2.05-2.05-1.79-1.98-2.54-2.13-2.31-2.19-2.75-2.98
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