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Mid-Con Energy Partners LP (NAS:MCEP)
Beneish M-Score
-1.42 (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 -1.42 signals that the company is a manipulator.

MCEP' s 10-Year Beneish M-Score Range
Min: -3.6   Max: -1.03
Current: -1.42

-3.6
-1.03

During the past 5 years, the highest Beneish M-Score of Mid-Con Energy Partners LP was -1.03. The lowest was -3.60. And the median was -2.73.


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 * 0.5567+0.528 * 0.9748+0.404 * 4.1592+0.892 * 1.5372+0.115 * 0.882
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4909+4.679 * -0.0902-0.327 * 0.7728
=-1.42

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $7.0 Mil.
Revenue was 12.74 + 19.215 + 51.616 + 35.453 = $119.0 Mil.
Gross Profit was 3.804 + 9.191 + 42.03 + 26.759 = $81.8 Mil.
Total Current Assets was $24.3 Mil.
Total Assets was $429.5 Mil.
Property, Plant and Equipment(Net PPE) was $399.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.6 Mil.
Selling, General & Admin. Expense(SGA) was $10.2 Mil.
Total Current Liabilities was $4.4 Mil.
Long-Term Debt was $200.0 Mil.
Net Income was -7.944 + -4.112 + 0.082 + 17.002 = $5.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 10.495 + 8.283 + 10.884 + 14.121 = $43.8 Mil.
Accounts Receivable was $8.2 Mil.
Revenue was 19.444 + 19.759 + 22.038 + 16.188 = $77.4 Mil.
Gross Profit was 11.355 + 13.712 + 16.384 + 10.413 = $51.9 Mil.
Total Current Assets was $10.5 Mil.
Total Assets was $248.8 Mil.
Property, Plant and Equipment(Net PPE) was $237.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.4 Mil.
Selling, General & Admin. Expense(SGA) was $13.6 Mil.
Total Current Liabilities was $14.2 Mil.
Long-Term Debt was $139.0 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)
=(7.02 / 119.024) / (8.203 / 77.429)
=0.0589797 / 0.10594222
=0.5567

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)
=(9.191 / 77.429) / (3.804 / 119.024)
=0.66982655 / 0.68712192
=0.9748

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 - (24.276 + 399.153) / 429.467) / (1 - (10.51 + 237.443) / 248.794)
=0.01405929 / 0.00338031
=4.1592

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
=119.024 / 77.429
=1.5372

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))
=(15.385 / (15.385 + 237.443)) / (29.579 / (29.579 + 399.153))
=0.06085165 / 0.06899182
=0.882

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)
=(10.235 / 119.024) / (13.563 / 77.429)
=0.08599106 / 0.17516693
=0.4909

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)
=((200 + 4.409) / 429.467) / ((139 + 14.229) / 248.794)
=0.47595974 / 0.61588704
=0.7728

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
=(5.028 - 0 - 43.783) / 429.467
=-0.0902

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 -1.42 signals that the company is likely to 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 0.7531
GMI 1.0062
AQI 2.4054
SGI 1.5772
DEPI 1.4511
SGAI 0.7412
LVGI 0.747
TATA -0.0615
M-score -1.73

Mid-Con Energy Partners LP Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.93360.88811.09781.08250.94270.75310.50220.5567
GMI 1.15771.02521.02841.04120.92531.00621.02240.9748
AQI 0.13680.4930.54270.40681.24642.40544.90674.1592
SGI 1.37661.19011.06651.11811.28441.57721.55671.5372
DEPI 1.18750.89681.17031.10621.38311.45111.0050.882
SGAI 0.88180.93530.87190.85620.93650.74120.50520.4909
LVGI 1.14371.1911.04581.01750.85510.7470.82650.7728
TATA -0.2412-0.1283-0.1182-0.1347-0.0661-0.0615-0.0678-0.0902
M-score -3.60-3.27-3.03-3.12-2.43-1.73-1.03-1.42
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