Mexco Energy (FRA:MZB) Beneish M-Score : -3.62 (As of May. 13, 2024)

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What is Mexco Energy Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Mexco Energy's Beneish M-Score or its related term are showing as below:

FRA:MZB' s Beneish M-Score Range Over the Past 10 Years
Min: -13.74 Med: -2.96 Max: 13.27
Current: -3.62

During the past 13 years, the highest Beneish M-Score of Mexco Energy was 13.27. The lowest was -13.74. And the median was -2.96.

Mexco Energy Beneish M-Score Historical Data

The historical data trend for Mexco Energy's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Mexco Energy Beneish M-Score Chart

Mexco Energy Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-3.35

-4.53

-1.36

-1.69

-2.34

Mexco Energy Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.21	-2.34	-3.22	-2.69	-3.62

Competitive Comparison of Mexco Energy's Beneish M-Score

For the Oil & Gas E&P subindustry, Mexco Energy's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Mexco Energy's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Mexco Energy's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Mexco Energy's Beneish M-Score falls into.

Mexco Energy Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Mexco Energy for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.6089

0.528 * 1.2357

0.404 * 1.653

0.892 * 0.7168

0.115 * 0.9354

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5268

4.679 * -0.192344

0.327 * 0.8251

-3.64

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €0.84 Mil.
Revenue was 1.519 + 1.318 + 1.613 + 2.056 = €6.51 Mil.
Gross Profit was 0.784 + 0.592 + 0.843 + 1.125 = €3.34 Mil.
Total Current Assets was €4.17 Mil.
Total Assets was €17.14 Mil.
Property, Plant and Equipment(Net PPE) was €12.13 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.72 Mil.
Selling, General, & Admin. Expense(SGA) was €1.14 Mil.
Total Current Liabilities was €0.23 Mil.
Long-Term Debt & Capital Lease Obligation was €0.00 Mil.
Net Income was 0.317 + 0.252 + 0.43 + 0.848 = €1.85 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.00 Mil.
Cash Flow from Operations was 0.866 + 0.763 + 1.492 + 2.022 = €5.14 Mil.

Total Receivables was €1.93 Mil.
Revenue was 2.436 + 2.348 + 2.318 + 1.975 = €9.08 Mil.
Gross Profit was 1.516 + 1.561 + 1.54 + 1.148 = €5.77 Mil.
Total Current Assets was €2.56 Mil.
Total Assets was €16.01 Mil.
Property, Plant and Equipment(Net PPE) was €12.98 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.71 Mil.
Selling, General, & Admin. Expense(SGA) was €1.04 Mil.
Total Current Liabilities was €0.23 Mil.
Long-Term Debt & Capital Lease Obligation was €0.03 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(0.844 / 6.506)	/	(1.934 / 9.077)
	=	0.129726	/	0.213066
	=	0.6089

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)
	=	(5.765 / 9.077)	/	(3.344 / 6.506)
	=	0.635122	/	0.513987
	=	1.2357

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (4.174 + 12.127) / 17.136)	/	(1 - (2.563 + 12.977) / 16.012)
	=	0.048728	/	0.029478
	=	1.653

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	6.506	/	9.077
	=	0.7168

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(1.707 / (1.707 + 12.977))	/	(1.721 / (1.721 + 12.127))
	=	0.116249	/	0.124278
	=	0.9354

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(1.137 / 6.506)	/	(1.039 / 9.077)
	=	0.174762	/	0.114465
	=	1.5268

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 0.234) / 17.136)	/	((0.032 + 0.233) / 16.012)
	=	0.013655	/	0.01655
	=	0.8251

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
	=	(1.847 - 0	-	5.143)	/	17.136
	=	-0.192344

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Mexco Energy has a M-score of -3.64 suggests that the company is unlikely to be a manipulator.

Mexco Energy Beneish M-Score Related Terms

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Mexco Energy (FRA:MZB) Business Description

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MXC:USA

Address

415 W. Wall Street, Suite 475, Midland, TX, USA, 79701

Website

https://www.mexcoenergy.com

Mexco Energy Corporation is an independent oil and gas company. It is engaged in the exploration, development, and production of natural gas and crude oil properties located in the United States. The company carried out its operation in the Permian Basin of West Texas. It is focusing on two primary areas, the Delaware Basin located in the Western portion of the Permian Basin including Lea and Eddy Counties, New Mexico and Loving County, Texas, and the Midland Basin located in the Eastern portion of the Permian Basin including Reagan, Upton, Midland, Martin, Howard, and Glasscock Counties, Texas. The company generates revenue from Oil sales, Natural gas sales, oil and gas royalty interests.

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