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Mid-Con Energy Partners LP (NAS:MCEP)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

MCEP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37   Max: -1.01
Current: -2.46

-3.37
-1.01

During the past 5 years, the highest Beneish M-Score of Mid-Con Energy Partners LP was -1.01. The lowest was -3.37. And the median was -2.94.


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 * 0.5785+0.528 * 1.1167+0.404 * 3.4868+0.892 * 1.26+0.115 * 0.5945
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5398+4.679 * -0.2021-0.327 * 0.9421
=-2.46

* 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 $6.2 Mil.
Revenue was 38.264 + 12.74 + 19.215 + 51.616 = $121.8 Mil.
Gross Profit was 29.503 + 5.123 + 10.3 + 37.336 = $82.3 Mil.
Total Current Assets was $37.3 Mil.
Total Assets was $393.9 Mil.
Property, Plant and Equipment(Net PPE) was $351.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.7 Mil.
Selling, General & Admin. Expense(SGA) was $9.9 Mil.
Total Current Liabilities was $4.0 Mil.
Long-Term Debt was $194.0 Mil.
Net Income was -25.478 + -7.944 + -4.112 + 0.082 = $-37.5 Mil.
Non Operating Income was -0.054 + 0 + 0 + 0 = $-0.1 Mil.
Cash Flow from Operations was 12.556 + 10.495 + 8.283 + 10.884 = $42.2 Mil.
Accounts Receivable was $8.5 Mil.
Revenue was 35.453 + 19.444 + 19.759 + 22.038 = $96.7 Mil.
Gross Profit was 28.604 + 12.848 + 15.068 + 16.384 = $72.9 Mil.
Total Current Assets was $14.8 Mil.
Total Assets was $332.8 Mil.
Property, Plant and Equipment(Net PPE) was $316.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.4 Mil.
Selling, General & Admin. Expense(SGA) was $14.5 Mil.
Total Current Liabilities was $9.5 Mil.
Long-Term Debt was $168.0 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)
=(6.192 / 121.835) / (8.495 / 96.694)
=0.05082283 / 0.08785447
=0.5785

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)
=(5.123 / 96.694) / (29.503 / 121.835)
=0.75396612 / 0.67519186
=1.1167

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 - (37.302 + 351.353) / 393.922) / (1 - (14.834 + 316.644) / 332.754)
=0.01337067 / 0.00383466
=3.4868

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
=121.835 / 96.694
=1.26

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))
=(17.364 / (17.364 + 316.644)) / (33.669 / (33.669 + 351.353))
=0.05198678 / 0.08744695
=0.5945

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)
=(9.886 / 121.835) / (14.535 / 96.694)
=0.08114253 / 0.15031956
=0.5398

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)
=((194 + 3.951) / 393.922) / ((168 + 9.487) / 332.754)
=0.50251319 / 0.53338803
=0.9421

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
=(-37.452 - -0.054 - 42.218) / 393.922
=-0.2021

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 -2.46 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

Dec10Dec11Dec12Dec13Dec14
DSRI 0.74680.88810.7531
GMI 0.88581.08041.0062
AQI 0.45010.4932.4054
SGI 1.71141.19011.5772
DEPI 1.16030.89681.4511
SGAI 1.70630.93530.7412
LVGI 0.9911.1910.747
TATA -0.1126-0.1496-0.0615
M-score -2.99-3.34-1.73

Mid-Con Energy Partners LP Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.270.93360.88811.09781.08250.94270.75310.50220.55670.5785
GMI 1.06331.04031.08041.08911.08350.99541.00621.04891.03371.1167
AQI 0.17890.13680.4930.54270.40681.24642.40544.90674.15923.4868
SGI 1.10671.37661.19011.06651.11811.28441.57721.55671.53721.26
DEPI 1.24351.18750.89681.17031.10621.38311.45111.0050.8820.5945
SGAI 1.58010.88170.93530.87190.85620.93650.74120.50520.49090.5398
LVGI 1.22181.14371.1911.04581.01750.85510.7470.82650.77280.9421
TATA -0.169-0.1411-0.1496-0.1182-0.1347-0.0661-0.0615-0.0678-0.0902-0.2021
M-score -3.37-3.20-3.34-2.99-3.09-2.39-1.73-1.01-1.39-2.46
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