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Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-3.39 (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 -3.39 suggests that the company is not a manipulator.

CNX' s Beneish M-Score Range Over the Past 10 Years
Min: -4.61   Max: -1.25
Current: -3.39

-4.61
-1.25

During the past 13 years, the highest Beneish M-Score of Consol Energy Inc was -1.25. The lowest was -4.61. And the median was -2.80.


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 * 0.8152+0.528 * 0.7978+0.404 * 1.0924+0.892 * 0.784+0.115 * 0.8417
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2908+4.679 * -0.083-0.327 * 1.0593
=-3.39

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $166 Mil.
Revenue was 558.514 + 761.932 + 813.938 + 648.939 = $2,783 Mil.
Gross Profit was 192.446 + 398.164 + 479.916 + 228.477 = $1,299 Mil.
Total Current Assets was $1,146 Mil.
Total Assets was $10,716 Mil.
Property, Plant and Equipment(Net PPE) was $9,090 Mil.
Depreciation, Depletion and Amortization(DDA) was $660 Mil.
Selling, General & Admin. Expense(SGA) was $183 Mil.
Total Current Liabilities was $1,585 Mil.
Long-Term Debt was $2,759 Mil.
Net Income was -97.572 + 30.406 + 118.98 + -603.301 = $-551 Mil.
Non Operating Income was 0 + -67.751 + 0 + 0 = $-68 Mil.
Cash Flow from Operations was 128.442 + 101.566 + 110.068 + 65.845 = $406 Mil.
Accounts Receivable was $260 Mil.
Revenue was 792.654 + 935.665 + 884.616 + 937.37 = $3,550 Mil.
Gross Profit was 369.796 + 126.426 + 391.345 + 434.385 = $1,322 Mil.
Total Current Assets was $933 Mil.
Total Assets was $11,781 Mil.
Property, Plant and Equipment(Net PPE) was $10,367 Mil.
Depreciation, Depletion and Amortization(DDA) was $626 Mil.
Selling, General & Admin. Expense(SGA) was $181 Mil.
Total Current Liabilities was $1,908 Mil.
Long-Term Debt was $2,601 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)
=(165.941 / 2783.323) / (259.66 / 3550.305)
=0.05961974 / 0.07313738
=0.8152

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)
=(398.164 / 3550.305) / (192.446 / 2783.323)
=0.37234885 / 0.4667094
=0.7978

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 - (1146.443 + 9090.391) / 10715.87) / (1 - (932.714 + 10366.581) / 11781.396)
=0.04470342 / 0.04092053
=1.0924

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
=2783.323 / 3550.305
=0.784

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))
=(626.239 / (626.239 + 10366.581)) / (659.959 / (659.959 + 9090.391))
=0.056968 / 0.06768567
=0.8417

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)
=(183.494 / 2783.323) / (181.33 / 3550.305)
=0.06592623 / 0.05107449
=1.2908

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)
=((2758.961 + 1584.931) / 10715.87) / ((2600.535 + 1907.984) / 11781.396)
=0.40536998 / 0.38268122
=1.0593

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
=(-551.487 - -67.751 - 405.921) / 10715.87
=-0.083

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 -3.39 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.12550.58811.02991.60861.08710.87541.13471.17410.69470.9195
GMI 1.00491.04641.0440.82561.06460.89811.12931.13450.63760.9519
AQI 1.14460.72090.93371.00810.80641.51750.93870.45520.76961.2204
SGI 0.9751.01271.19251.03021.13291.16830.88770.60761.12940.8357
DEPI 1.01371.11150.97110.95251.25810.84951.08451.24560.8750.8453
SGAI 1.15851.17720.96111.01871.01441.08540.87571.00485.05830.4236
LVGI 0.90021.11381.10790.91031.64330.9070.96251.07161.00091.0769
TATA -0.0451-0.067-0.1071-0.0562-0.082-0.0609-0.02610.0001-0.0582-0.0744
M-score -2.53-3.30-2.82-2.22-2.89-2.58-2.49-2.81-3.91-2.93

Consol Energy Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.79510.73240.49540.36410.69470.70460.83380.89880.9490.8152
GMI 1.65761.25231.31181.53350.6990.93451.05070.97880.78520.7978
AQI 0.45520.61470.72620.50630.76960.91050.85851.11121.22041.0924
SGI 0.89731.10741.43271.71341.12941.03630.92270.88240.80970.784
DEPI 0.79960.70270.58930.49990.89450.89780.85170.87910.89340.8417
SGAI 0.4480.30110.2290.18561.16450.98310.50630.0570.99211.2908
LVGI 1.07161.0421.02781.03661.00091.02341.13621.07511.07691.0593
TATA 0.00010.0044-0.0049-0.0079-0.0582-0.0458-0.0875-0.059-0.0682-0.083
M-score -2.58-2.56-2.45-2.31-3.21-3.02-3.12-2.80-3.08-3.39
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