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Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-2.32 (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 -2.32 suggests that the company is not a manipulator.

CNX' s 10-Year Beneish M-Score Range
Min: -3.72   Max: -1.32
Current: -2.32

-3.72
-1.32

During the past 13 years, the highest Beneish M-Score of Consol Energy Inc was -1.32. The lowest was -3.72. And the median was -2.68.


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 * 0.3641+0.528 * 1.469+0.404 * 0.5063+0.892 * 1.7134+0.115 * 0.5342
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.1012+4.679 * -0.0061-0.327 * 1.0366
=-2.32

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $300 Mil.
Revenue was 884.616 + 937.37 + 969.153 + 825.23 = $3,616 Mil.
Gross Profit was 389.079 + 436.506 + 257.389 + -73.255 = $1,010 Mil.
Total Current Assets was $1,325 Mil.
Total Assets was $11,719 Mil.
Property, Plant and Equipment(Net PPE) was $9,964 Mil.
Depreciation, Depletion and Amortization(DDA) was $538 Mil.
Selling, General & Admin. Expense(SGA) was $59 Mil.
Total Current Liabilities was $1,247 Mil.
Long-Term Debt was $3,279 Mil.
Net Income was -1.645 + -24.935 + 116.003 + 738.183 = $828 Mil.
Non Operating Income was -20.99 + 0 + 0 + 0 = $-21 Mil.
Cash Flow from Operations was 293.024 + 221.045 + 336.102 + 69.777 = $920 Mil.
Accounts Receivable was $481 Mil.
Revenue was 803.345 + 828.167 + 842.943 + -363.82 = $2,111 Mil.
Gross Profit was 326.085 + 355.633 + 173.619 + 10.358 = $866 Mil.
Total Current Assets was $1,183 Mil.
Total Assets was $12,737 Mil.
Property, Plant and Equipment(Net PPE) was $10,631 Mil.
Depreciation, Depletion and Amortization(DDA) was $299 Mil.
Selling, General & Admin. Expense(SGA) was $342 Mil.
Total Current Liabilities was $1,574 Mil.
Long-Term Debt was $3,172 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)
=(299.939 / 3616.369) / (480.752 / 2110.635)
=0.08293927 / 0.227776
=0.3641

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)
=(436.506 / 2110.635) / (389.079 / 3616.369)
=0.41015855 / 0.27920796
=1.469

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 - (1325.095 + 9963.984) / 11718.935) / (1 - (1183.436 + 10630.857) / 12737.072)
=0.03668047 / 0.07244828
=0.5063

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
=3616.369 / 2110.635
=1.7134

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))
=(299.086 / (299.086 + 10630.857)) / (537.965 / (537.965 + 9963.984))
=0.02736391 / 0.05122525
=0.5342

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)
=(59.243 / 3616.369) / (341.625 / 2110.635)
=0.0163819 / 0.16185887
=0.1012

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)
=((3279.322 + 1246.646) / 11718.935) / ((3171.931 + 1573.597) / 12737.072)
=0.38620984 / 0.37257605
=1.0366

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
=(827.606 - -20.99 - 919.948) / 11718.935
=-0.0061

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 -2.32 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 0.99261.80431.12550.62050.9761.60861.08710.87541.67550.7951
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 -2.45-1.77-2.67-3.40-2.84-2.27-2.89-2.57-2.22-2.93

Consol Energy Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.80190.96531.67551.85972.24332.78260.79510.73240.49540.3641
GMI 1.03511.14481.08541.08511.06650.81611.49941.30191.26131.469
AQI 1.49820.74730.93870.71540.67870.99090.45520.61470.72620.5063
SGI 1.03220.94120.60120.50890.4150.3780.89731.10741.43271.7134
DEPI 0.94431.09371.56371.74511.9572.15490.86390.75710.63230.5342
SGAI 0.78960.67640.61661.82063.49735.85060.62150.01050.0910.1012
LVGI 0.91150.97540.96250.98761.03471.03671.07161.0421.02781.0366
TATA -0.0387-0.0296-0.0261-0.0379-0.0493-0.05610.00010.0044-0.0049-0.0061
M-score -2.54-2.65-2.17-2.43-2.51-2.47-2.69-2.48-2.45-2.32
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