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Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-3.21 (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 -3.21 suggests that the company is not a manipulator.

CNX' s 10-Year Beneish M-Score Range
Min: -3.81   Max: -1.32
Current: -3.21

-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 -2.79.


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 * 0.8098+0.528 * 1.0201+0.404 * 0.8585+0.892 * 0.9501+0.115 * 0.8359
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7787+4.679 * -0.0943-0.327 * 1.1362
=-3.21

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $212 Mil.
Revenue was 648.939 + 889.592 + 935.665 + 884.616 = $3,359 Mil.
Gross Profit was 228.477 + 413.492 + 422.425 + 389.079 = $1,453 Mil.
Total Current Assets was $822 Mil.
Total Assets was $11,002 Mil.
Property, Plant and Equipment(Net PPE) was $9,720 Mil.
Depreciation, Depletion and Amortization(DDA) was $609 Mil.
Selling, General & Admin. Expense(SGA) was $352 Mil.
Total Current Liabilities was $2,096 Mil.
Long-Term Debt was $2,597 Mil.
Net Income was -603.301 + 79.03 + 73.666 + -1.645 = $-452 Mil.
Non Operating Income was 0 + -67.734 + 0 + -20.99 = $-89 Mil.
Cash Flow from Operations was 65.845 + 228.37 + 86.609 + 293.024 = $674 Mil.
Accounts Receivable was $275 Mil.
Revenue was 937.37 + 969.153 + 825.23 + 803.345 = $3,535 Mil.
Gross Profit was 434.385 + 479.602 + 320.367 + 326.085 = $1,560 Mil.
Total Current Assets was $1,226 Mil.
Total Assets was $11,567 Mil.
Property, Plant and Equipment(Net PPE) was $9,777 Mil.
Depreciation, Depletion and Amortization(DDA) was $507 Mil.
Selling, General & Admin. Expense(SGA) was $476 Mil.
Total Current Liabilities was $1,084 Mil.
Long-Term Debt was $3,259 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)
=(211.909 / 3358.812) / (275.431 / 3535.098)
=0.06309046 / 0.07791326
=0.8098

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)
=(413.492 / 3535.098) / (228.477 / 3358.812)
=0.44141322 / 0.43273425
=1.0201

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 - (821.502 + 9720.001) / 11002.101) / (1 - (1225.855 + 9776.758) / 11566.647)
=0.04186455 / 0.04876383
=0.8585

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
=3358.812 / 3535.098
=0.9501

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))
=(507.03 / (507.03 + 9776.758)) / (609.267 / (609.267 + 9720.001))
=0.04930382 / 0.05898453
=0.8359

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)
=(352.141 / 3358.812) / (475.959 / 3535.098)
=0.10484094 / 0.13463813
=0.7787

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)
=((2597.498 + 2096.029) / 11002.101) / ((3259.381 + 1083.666) / 11566.647)
=0.42660279 / 0.37548021
=1.1362

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
=(-452.25 - -88.724 - 673.848) / 11002.101
=-0.0943

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 -3.21 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.85972.24332.78260.79510.73240.49540.36410.69170.68590.8098
GMI 1.08511.06650.81610.99740.76080.76520.91370.76960.95061.0201
AQI 0.71540.67870.99090.45520.61470.72620.50630.8250.91050.8585
SGI 0.50890.4150.3780.89731.10741.43271.71341.12941.06460.9501
DEPI 1.74511.9572.15490.86390.75710.63230.53420.8750.87780.8359
SGAI 1.82063.49735.85065.57552.32371.27590.85640.98170.91380.7787
LVGI 0.98761.03471.03671.07161.0421.02781.03661.00061.02341.1362
TATA -0.0379-0.0493-0.05610.00010.0044-0.0049-0.0061-0.064-0.0521-0.0943
M-score -2.43-2.51-2.47-3.81-3.16-2.91-2.74-3.15-3.02-3.21
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