Switch to:
Mid-Con Energy Partners LP (NAS:MCEP)
Beneish M-Score
-3.08 (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.

Mid-Con Energy Partners LP has a M-score of -3.08 suggests that the company is not a manipulator.

MCEP' s 10-Year Beneish M-Score Range
Min: -3.4   Max: -3.03
Current: -3.08

-3.4
-3.03

During the past 4 years, the highest Beneish M-Score of Mid-Con Energy Partners LP was -3.03. The lowest was -3.40. And the median was -3.20.


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 Mid-Con Energy Partners LP 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 * 1.0611+0.528 * 1.143+0.404 * 0.4068+0.892 * 1.1181+0.115 * 1.1062
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8562+4.679 * -0.1347-0.327 * 1.0175
=-3.08

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $8.28 Mil.
Revenue was 19.444 + 19.759 + 22.038 + 16.188 = $77.43 Mil.
Gross Profit was 11.355 + 13.712 + 16.384 + 10.413 = $51.86 Mil.
Total Current Assets was $10.51 Mil.
Total Assets was $248.79 Mil.
Property, Plant and Equipment(Net PPE) was $237.44 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.39 Mil.
Selling, General & Admin. Expense(SGA) was $13.56 Mil.
Total Current Liabilities was $14.23 Mil.
Long-Term Debt was $139.00 Mil.
Net Income was 3.847 + 1.561 + 9.335 + 4.257 = $19.00 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 13.609 + 11.85 + 14.149 + 12.902 = $52.51 Mil.
Accounts Receivable was $6.98 Mil.
Revenue was 22.779 + 19.056 + 17.258 + 10.156 = $69.25 Mil.
Gross Profit was 18.161 + 14.92 + 13.002 + 6.937 = $53.02 Mil.
Total Current Assets was $11.03 Mil.
Total Assets was $192.56 Mil.
Property, Plant and Equipment(Net PPE) was $179.93 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.99 Mil.
Selling, General & Admin. Expense(SGA) was $14.17 Mil.
Total Current Liabilities was $5.56 Mil.
Long-Term Debt was $111.00 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)
=(8.278 / 77.429) / (6.977 / 69.249)
=0.10691085 / 0.10075236
=1.0611

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)
=(13.712 / 69.249) / (11.355 / 77.429)
=0.76564283 / 0.66982655
=1.143

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 - (10.51 + 237.443) / 248.794) / (1 - (11.028 + 179.931) / 192.559)
=0.00338031 / 0.00830914
=0.4068

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
=77.429 / 69.249
=1.1181

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))
=(12.986 / (12.986 + 179.931)) / (15.385 / (15.385 + 237.443))
=0.06731392 / 0.06085165
=1.1062

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)
=(13.563 / 77.429) / (14.168 / 69.249)
=0.17516693 / 0.20459501
=0.8562

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)
=((139 + 14.229) / 248.794) / ((111 + 5.555) / 192.559)
=0.61588704 / 0.605295
=1.0175

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
=(19 - 0 - 52.51) / 248.794
=-0.1347

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.

Mid-Con Energy Partners LP has a M-score of -3.08 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.

Mid-Con Energy Partners LP Annual Data

Dec10Dec11Dec12Dec13
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score

Mid-Con Energy Partners LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.88450.82421.04891.0611
GMI 0.89531.08041.11431.143
AQI 0.13680.4930.54270.4068
SGI 1.37661.19011.06651.1181
DEPI 1.18750.89681.17031.1062
SGAI 0.88170.93530.87190.8562
LVGI 1.14371.1911.04581.0175
TATA -0.1411-0.1496-0.1182-0.1347
M-score -3.32-3.40-3.03-3.08
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK