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Mid-Con Energy Partners LP (NAS:MCEP)
Beneish M-Score
-4.59 (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 -4.59 suggests that the company is not a manipulator.

MCEP' s Beneish M-Score Range Over the Past 10 Years
Min: -5.36   Max: -1.03
Current: -4.59

-5.36
-1.03

During the past 6 years, the highest Beneish M-Score of Mid-Con Energy Partners LP was -1.03. The lowest was -5.36. And the median was -3.06.


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 * 1.5831+0.528 * 1.3611+0.404 * 0.7678+0.892 * 0.4806+0.115 * 0.9881
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5072+4.679 * -0.4721-0.327 * 0.9425
=-4.59

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $4.71 Mil.
Revenue was 13.966 + 4.689 + 13.837 + 26.061 = $58.55 Mil.
Gross Profit was 7.504 + -1.82 + 7.18 + 16.91 = $29.77 Mil.
Total Current Assets was $9.64 Mil.
Total Assets was $280.62 Mil.
Property, Plant and Equipment(Net PPE) was $268.11 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.03 Mil.
Selling, General & Admin. Expense(SGA) was $7.16 Mil.
Total Current Liabilities was $5.01 Mil.
Long-Term Debt was $127.90 Mil.
Net Income was -2.861 + -15.769 + -3.313 + -57.961 = $-79.90 Mil.
Non Operating Income was -0.164 + 0 + 0 + 0.012 = $-0.15 Mil.
Cash Flow from Operations was 10.729 + 12.795 + 12.104 + 17.091 = $52.72 Mil.
Accounts Receivable was $6.19 Mil.
Revenue was 38.264 + 12.74 + 19.215 + 51.616 = $121.84 Mil.
Gross Profit was 29.297 + 3.804 + 9.191 + 42.03 = $84.32 Mil.
Total Current Assets was $37.30 Mil.
Total Assets was $393.92 Mil.
Property, Plant and Equipment(Net PPE) was $351.35 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.67 Mil.
Selling, General & Admin. Expense(SGA) was $9.89 Mil.
Total Current Liabilities was $3.95 Mil.
Long-Term Debt was $194.00 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)
=(4.711 / 58.553) / (6.192 / 121.835)
=0.08045702 / 0.05082283
=1.5831

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)
=(84.322 / 121.835) / (29.774 / 58.553)
=0.69209997 / 0.50849658
=1.3611

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 - (9.635 + 268.108) / 280.624) / (1 - (37.302 + 351.353) / 393.922)
=0.01026641 / 0.01337067
=0.7678

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
=58.553 / 121.835
=0.4806

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))
=(33.669 / (33.669 + 351.353)) / (26.032 / (26.032 + 268.108))
=0.08744695 / 0.08850207
=0.9881

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)
=(7.161 / 58.553) / (9.886 / 121.835)
=0.12229946 / 0.08114253
=1.5072

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)
=((127.9 + 5.011) / 280.624) / ((194 + 3.951) / 393.922)
=0.47362663 / 0.50251319
=0.9425

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
=(-79.904 - -0.152 - 52.719) / 280.624
=-0.4721

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 -4.59 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 local exchange's currency.

Mid-Con Energy Partners LP Annual Data

Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.74680.88810.75310.7414
GMI 0.88581.08041.00621.2088
AQI 0.45010.4932.40541.3452
SGI 1.71141.19011.57720.7625
DEPI 1.16030.89681.45110.4789
SGAI 1.70630.93530.74120.8623
LVGI 0.9911.1910.7471.2
TATA -0.1126-0.1496-0.0615-0.4399
M-score -2.99-3.34-1.73-4.84

Mid-Con Energy Partners LP Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.08250.94270.75310.50220.55670.57850.74140.93031.07091.5831
GMI 1.1431.06391.00621.02240.97481.01921.20881.12941.1041.3611
AQI 0.40681.24642.40544.90674.15923.48681.34520.75810.77830.7678
SGI 1.11811.28441.57721.55671.53721.260.76250.7230.69610.4806
DEPI 1.10621.38311.45111.0050.8820.59450.47890.58830.65020.9881
SGAI 0.85620.93650.74120.50520.49090.53980.86231.05281.08061.5072
LVGI 1.01750.85510.7470.82650.77280.94211.21.17741.21430.9425
TATA -0.1347-0.0661-0.0615-0.0678-0.0902-0.2021-0.4399-0.4706-0.5366-0.4721
M-score -3.06-2.35-1.73-1.03-1.42-2.52-4.84-5.14-5.36-4.59
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