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Mid-Con Energy Partners LP (NAS:MCEP)
Beneish M-Score
-3.03 (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 -3.03 suggests that the company is not a manipulator.

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

-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 -3.32.


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 * 1.0489+0.528 * 1.1143+0.404 * 0.5427+0.892 * 1.0665+0.115 * 1.1703
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8719+4.679 * -0.1182-0.327 * 1.0458
=-3.03

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $7.86 Mil.
Revenue was 19.759 + 22.038 + 16.188 + 22.779 = $80.76 Mil.
Gross Profit was 13.712 + 16.384 + 10.413 + 18.161 = $58.67 Mil.
Total Current Assets was $8.75 Mil.
Total Assets was $235.43 Mil.
Property, Plant and Equipment(Net PPE) was $225.70 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.62 Mil.
Selling, General & Admin. Expense(SGA) was $13.13 Mil.
Total Current Liabilities was $10.09 Mil.
Long-Term Debt was $123.00 Mil.
Net Income was 1.561 + 9.335 + 4.257 + 10.538 = $25.69 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 11.85 + 14.149 + 12.902 + 14.612 = $53.51 Mil.
Accounts Receivable was $7.03 Mil.
Revenue was 19.056 + 17.258 + 10.156 + 29.261 = $75.73 Mil.
Gross Profit was 14.92 + 13.002 + 6.937 + 26.441 = $61.30 Mil.
Total Current Assets was $10.40 Mil.
Total Assets was $161.32 Mil.
Property, Plant and Equipment(Net PPE) was $149.69 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.48 Mil.
Selling, General & Admin. Expense(SGA) was $14.12 Mil.
Total Current Liabilities was $7.20 Mil.
Long-Term Debt was $80.00 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)
=(7.864 / 80.764) / (7.03 / 75.731)
=0.09737012 / 0.09282856
=1.0489

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)
=(16.384 / 75.731) / (13.712 / 80.764)
=0.80944395 / 0.72643752
=1.1143

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 - (8.752 + 225.695) / 235.429) / (1 - (10.397 + 149.686) / 161.323)
=0.00417111 / 0.00768644
=0.5427

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
=80.764 / 75.731
=1.0665

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))
=(11.475 / (11.475 + 149.686)) / (14.621 / (14.621 + 225.695))
=0.07120209 / 0.06084073
=1.1703

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)
=(13.127 / 80.764) / (14.118 / 75.731)
=0.16253529 / 0.186423
=0.8719

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)
=((123 + 10.086) / 235.429) / ((80 + 7.198) / 161.323)
=0.56529145 / 0.54051809
=1.0458

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
=(25.691 - 0 - 53.513) / 235.429
=-0.1182

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 -3.03 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.88450.82421.0489
GMI 0.89531.08041.1143
AQI 0.13680.4930.5427
SGI 1.37661.19011.0665
DEPI 1.18750.89681.1703
SGAI 0.88170.93530.8719
LVGI 1.14371.1911.0458
TATA -0.1411-0.1496-0.1182
M-score -3.32-3.40-3.03
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