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Mid-Con Energy Partners LP (NAS:MCEP)
Beneish M-Score
-2.35 (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 -2.35 suggests that the company is not a manipulator.

MCEP' s 10-Year Beneish M-Score Range
Min: -3.34   Max: -2.35
Current: -2.35

-3.34
-2.35

During the past 4 years, the highest Beneish M-Score of Mid-Con Energy Partners LP was -2.35. The lowest was -3.34. 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 * 0.9427+0.528 * 1.0639+0.404 * 1.2464+0.892 * 1.2844+0.115 * 1.3831
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9365+4.679 * -0.0661-0.327 * 0.8551
=-2.35

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $8.50 Mil.
Revenue was 35.453 + 19.444 + 19.759 + 22.038 = $96.69 Mil.
Gross Profit was 26.759 + 11.355 + 13.712 + 16.384 = $68.21 Mil.
Total Current Assets was $14.83 Mil.
Total Assets was $332.75 Mil.
Property, Plant and Equipment(Net PPE) was $316.64 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.36 Mil.
Selling, General & Admin. Expense(SGA) was $14.54 Mil.
Total Current Liabilities was $9.49 Mil.
Long-Term Debt was $168.00 Mil.
Net Income was 17.002 + 3.847 + 1.561 + 9.335 = $31.75 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 14.121 + 13.609 + 11.85 + 14.149 = $53.73 Mil.
Accounts Receivable was $7.02 Mil.
Revenue was 16.188 + 22.779 + 19.056 + 17.258 = $75.28 Mil.
Gross Profit was 10.413 + 18.161 + 14.92 + 13.002 = $56.50 Mil.
Total Current Assets was $8.06 Mil.
Total Assets was $188.85 Mil.
Property, Plant and Equipment(Net PPE) was $180.21 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.96 Mil.
Selling, General & Admin. Expense(SGA) was $12.08 Mil.
Total Current Liabilities was $5.80 Mil.
Long-Term Debt was $112.00 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)
=(8.495 / 96.694) / (7.016 / 75.281)
=0.08785447 / 0.09319749
=0.9427

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)
=(11.355 / 75.281) / (26.759 / 96.694)
=0.75046825 / 0.70542123
=1.0639

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 - (14.834 + 316.644) / 332.754) / (1 - (8.058 + 180.208) / 188.847)
=0.00383466 / 0.00307656
=1.2464

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
=96.694 / 75.281
=1.2844

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))
=(13.961 / (13.961 + 180.208)) / (17.364 / (17.364 + 316.644))
=0.07190128 / 0.05198678
=1.3831

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)
=(14.535 / 96.694) / (12.084 / 75.281)
=0.15031956 / 0.16051859
=0.9365

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)
=((168 + 9.487) / 332.754) / ((112 + 5.798) / 188.847)
=0.53338803 / 0.6237748
=0.8551

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
=(31.745 - 0 - 53.729) / 332.754
=-0.0661

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 -2.35 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.93360.88811.09781.08250.9427
GMI 0.89531.08041.11431.1431.0639
AQI 0.13680.4930.54270.40681.2464
SGI 1.37661.19011.06651.11811.2844
DEPI 1.18750.89681.17031.10621.3831
SGAI 0.88170.93530.87190.85620.9365
LVGI 1.14371.1911.04581.01750.8551
TATA -0.1411-0.1496-0.1182-0.1347-0.0661
M-score -3.27-3.34-2.98-3.06-2.35
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