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Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-3.20 (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 -3.20 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: -3.2

-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 -2.79.


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 * 0.9483+0.528 * 0.8424+0.404 * 1.5852+0.892 * 0.7662+0.115 * 0.8413
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.3952+4.679 * -0.0803-0.327 * 0.9357
=-3.20

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $154 Mil.
Revenue was 285.8 + 558.514 + 761.932 + 813.938 = $2,420 Mil.
Gross Profit was -73.036 + 192.446 + 398.164 + 479.916 = $997 Mil.
Total Current Assets was $526 Mil.
Total Assets was $9,785 Mil.
Property, Plant and Equipment(Net PPE) was $8,609 Mil.
Depreciation, Depletion and Amortization(DDA) was $660 Mil.
Selling, General & Admin. Expense(SGA) was $201 Mil.
Total Current Liabilities was $1,151 Mil.
Long-Term Debt was $2,754 Mil.
Net Income was -469.828 + -97.572 + 30.406 + 118.98 = $-418 Mil.
Non Operating Income was 0 + 0 + -67.751 + 0 = $-68 Mil.
Cash Flow from Operations was 95.299 + 128.442 + 101.566 + 110.068 = $435 Mil.
Accounts Receivable was $212 Mil.
Revenue was 545.574 + 792.654 + 935.665 + 884.616 = $3,159 Mil.
Gross Profit was 209.086 + 369.796 + 126.426 + 391.345 = $1,097 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 $619 Mil.
Selling, General & Admin. Expense(SGA) was $109 Mil.
Total Current Liabilities was $2,096 Mil.
Long-Term Debt was $2,597 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)
=(153.977 / 2420.184) / (211.909 / 3158.509)
=0.06362202 / 0.06709147
=0.9483

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)
=(1096.653 / 3158.509) / (997.49 / 2420.184)
=0.34720591 / 0.41215461
=0.8424

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 - (526.24 + 8609.176) / 9784.757) / (1 - (821.502 + 9720.001) / 11002.101)
=0.06636251 / 0.04186455
=1.5852

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
=2420.184 / 3158.509
=0.7662

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))
=(618.919 / (618.919 + 9720.001)) / (659.522 / (659.522 + 8609.176))
=0.05986302 / 0.07115584
=0.8413

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)
=(200.731 / 2420.184) / (109.373 / 3158.509)
=0.08294039 / 0.03462805
=2.3952

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)
=((2754.498 + 1151.379) / 9784.757) / ((2597.498 + 2096.029) / 11002.101)
=0.39917977 / 0.42660279
=0.9357

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
=(-418.014 - -67.751 - 435.375) / 9784.757
=-0.0803

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 -3.20 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 1.12550.62050.9761.60861.08711.22341.19890.79510.69470.9195
GMI 1.00491.19140.9170.82561.06460.7970.96061.35830.85310.7871
AQI 1.14460.72090.93371.00810.80641.51750.93870.45520.76961.2204
SGI 0.9750.95971.25831.03021.13290.83590.84020.89731.12940.8357
DEPI 1.01371.11150.97110.95251.25811.21091.09710.79960.89450.8934
SGAI 1.15851.24220.91091.01871.45590.71894.12890.54680.9540.921
LVGI 0.90021.11381.10790.91031.64330.9070.96251.07161.00091.0769
TATA -0.0451-0.1037-0.1071-0.067-0.065-0.0715-0.02610.0001-0.0582-0.0744
M-score -2.53-3.43-2.87-2.27-2.89-2.55-3.12-2.76-3.09-3.10

Consol Energy Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.73240.49540.36410.69470.70460.86110.92890.98270.84660.9483
GMI 1.25231.31181.53350.6990.93451.03540.96260.76840.77980.8424
AQI 0.61470.72620.50630.76960.91050.85851.11121.22041.09241.5852
SGI 1.10741.43271.71341.12941.03630.89350.85380.78190.75490.7662
DEPI 0.70270.58930.49990.89450.89780.88370.87910.89340.84170.8413
SGAI 0.30110.2290.18561.16450.98310.60260.1351.10521.44632.3952
LVGI 1.0421.02781.03661.00091.02341.13621.07511.07691.05930.9357
TATA 0.0044-0.0049-0.0079-0.0582-0.0458-0.01220.01510.0077-0.0057-0.0803
M-score -2.56-2.45-2.31-3.21-3.02-2.79-2.47-2.74-3.06-3.20
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