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Consol Energy Inc (NYSE:CNX)
Beneish M-Score
-2.91 (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 -2.91 suggests that the company is not a manipulator.

CNX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.81   Max: -1.32
Current: -2.91

-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 * 0.8723+0.528 * 0.9549+0.404 * 1.1112+0.892 * 0.9092+0.115 * 0.8659
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6262+4.679 * -0.059-0.327 * 1.0751
=-2.91

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $238 Mil.
Revenue was 813.938 + 648.939 + 889.592 + 935.665 = $3,288 Mil.
Gross Profit was 479.916 + 228.477 + 413.492 + 426.141 = $1,548 Mil.
Total Current Assets was $970 Mil.
Total Assets was $11,185 Mil.
Property, Plant and Equipment(Net PPE) was $9,759 Mil.
Depreciation, Depletion and Amortization(DDA) was $614 Mil.
Selling, General & Admin. Expense(SGA) was $282 Mil.
Total Current Liabilities was $1,868 Mil.
Long-Term Debt was $2,777 Mil.
Net Income was 118.98 + -603.301 + 79.03 + 73.666 = $-332 Mil.
Non Operating Income was 0 + 0 + -67.734 + -95.267 = $-163 Mil.
Cash Flow from Operations was 110.068 + 65.845 + 228.37 + 86.609 = $491 Mil.
Accounts Receivable was $300 Mil.
Revenue was 884.616 + 937.37 + 969.153 + 825.23 = $3,616 Mil.
Gross Profit was 391.345 + 434.385 + 479.602 + 320.367 = $1,626 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 $495 Mil.
Total Current Liabilities was $1,247 Mil.
Long-Term Debt was $3,279 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)
=(237.896 / 3288.134) / (299.939 / 3616.369)
=0.07234985 / 0.08293927
=0.8723

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)
=(228.477 / 3616.369) / (479.916 / 3288.134)
=0.44953903 / 0.47079164
=0.9549

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 - (970.461 + 9758.98) / 11185.366) / (1 - (1325.095 + 9963.984) / 11718.935)
=0.04076085 / 0.03668047
=1.1112

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
=3288.134 / 3616.369
=0.9092

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))
=(537.965 / (537.965 + 9963.984)) / (613.591 / (613.591 + 9758.98))
=0.05122525 / 0.05915515
=0.8659

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)
=(282.134 / 3288.134) / (495.495 / 3616.369)
=0.08580368 / 0.1370145
=0.6262

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)
=((2776.678 + 1867.703) / 11185.366) / ((3279.322 + 1246.646) / 11718.935)
=0.4152194 / 0.38620984
=1.0751

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
=(-331.625 - -163.001 - 490.892) / 11185.366
=-0.059

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 -2.91 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 1.12550.62050.9761.60861.08711.22341.19890.79510.69170.9235
GMI 1.00491.19140.9170.82561.06460.7970.96061.07140.89430.9017
AQI 1.14460.72090.93371.00810.80641.51750.93870.45520.8251.1385
SGI 0.9750.95971.25831.03021.13290.83590.84020.89731.12940.8357
DEPI 1.01371.11150.97110.95251.25811.21091.09710.86390.8750.8453
SGAI 1.15851.24220.91091.01871.45590.71894.12891.22340.9270.5279
LVGI 0.90021.11381.10790.91031.64330.9070.96251.07161.00061.0772
TATA -0.0753-0.0987-0.1022-0.067-0.065-0.0715-0.02610.0001-0.0577-0.0425
M-score -2.67-3.40-2.84-2.27-2.89-2.55-3.12-3.02-3.05-2.85

Consol Energy Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.91540.79510.73240.49540.36410.69170.68590.80980.87230.9235
GMI 0.65921.24941.00761.06841.26040.76690.94721.01590.95490.9157
AQI 0.99090.45520.61470.72620.50630.8250.91050.85851.11121.1385
SGI 0.54920.89731.10741.43271.71341.12941.06460.95010.90920.8357
DEPI 1.50590.86390.75710.63230.53420.8750.87780.83590.86590.8868
SGAI 13.61711.12480.76250.53660.41291.00850.94230.8090.62620.528
LVGI 1.03671.07161.0421.02781.03661.00061.02341.13621.07511.0772
TATA -0.05610.00010.0044-0.0049-0.0079-0.0577-0.0458-0.0875-0.059-0.0644
M-score -4.61-2.91-2.76-2.63-2.49-3.13-3.00-3.19-2.91-2.94
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