Switch to:
Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-2.88 (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 -2.88 suggests that the company is not a manipulator.

CNX' s 10-Year Beneish M-Score Range
Min: -3.66   Max: -1.74
Current: -2.88

-3.66
-1.74

During the past 13 years, the highest Beneish M-Score of Consol Energy Inc was -1.74. The lowest was -3.66. 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 * 0.7055+0.528 * 1.0832+0.404 * 0.6147+0.892 * 0.963+0.115 * 0.7571
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7806+4.679 * 0.0044-0.327 * 1.042
=-2.88

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $626 Mil.
Revenue was 969.153 + -438.053 + 1231.418 + 1216.68 = $2,979 Mil.
Gross Profit was 257.389 + -43.465 + 354.962 + 336.082 = $905 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 $132 Mil.
Total Current Liabilities was $1,170 Mil.
Long-Term Debt was $3,161 Mil.
Net Income was 116.003 + 738.183 + -63.651 + -12.526 = $778 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 336.102 + 69.771 + 195.611 + 125.113 = $727 Mil.
Accounts Receivable was $921 Mil.
Revenue was 842.943 + -363.82 + 1160.089 + 1454.487 = $3,094 Mil.
Gross Profit was 173.619 + 10.358 + 293.849 + 540.133 = $1,018 Mil.
Total Current Assets was $1,439 Mil.
Total Assets was $12,593 Mil.
Property, Plant and Equipment(Net PPE) was $10,233 Mil.
Depreciation, Depletion and Amortization(DDA) was $381 Mil.
Selling, General & Admin. Expense(SGA) was $175 Mil.
Total Current Liabilities was $1,347 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)
=(625.797 / 2979.198) / (921.174 / 3093.699)
=0.21005553 / 0.29775812
=0.7055

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)
=(-43.465 / 3093.699) / (257.389 / 2979.198)
=0.32904268 / 0.30376229
=1.0832

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 - (1458.836 + 9604.991) / 11584.475) / (1 - (1439.172 + 10233.204) / 12593.194)
=0.0449436 / 0.07312029
=0.6147

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
=2979.198 / 3093.699
=0.963

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))
=(381.46 / (381.46 + 10233.204)) / (478.66 / (478.66 + 9604.991))
=0.03593708 / 0.04746892
=0.7571

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)
=(131.693 / 2979.198) / (175.199 / 3093.699)
=0.04420418 / 0.05663091
=0.7806

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)
=((3161.341 + 1170.347) / 11584.475) / ((3172.539 + 1346.652) / 12593.194)
=0.37392182 / 0.35885979
=1.042

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
=(778.009 - 0 - 726.597) / 11584.475
=0.0044

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 -2.88 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.59921.4081.09221.72412.00062.2351.46370.86310.70550.8468
GMI 1.05121.03511.14481.08541.08511.26411.11971.23461.08320.9886
AQI 1.57991.49820.74730.93870.71540.67870.99090.45520.61470.7262
SGI 1.1131.03220.94120.60120.50890.48040.52430.77580.9630.9454
DEPI 0.88870.94431.09371.56371.74511.52071.44570.86390.75711.0045
SGAI 0.66190.78960.67640.61661.82062.07242.16562.56250.78061.4533
LVGI 0.92150.91150.97540.96250.98761.03471.03671.07161.0421.0278
TATA -0.0623-0.0387-0.0296-0.0261-0.0379-0.0493-0.05610.00010.0044-0.0254
M-score -1.79-1.98-2.54-2.13-2.30-2.16-2.84-3.21-2.88-2.99
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)
Free 7-day Trial
FEEDBACK
Email Hide