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Mid-Con Energy Partners LP (NAS:MCEP)
Beneish M-Score
-4.84 (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 -4.84 suggests that the company is not a manipulator.

MCEP' s Beneish M-Score Range Over the Past 10 Years
Min: -4.84   Max: -1.73
Current: -4.84

-4.84
-1.73

During the past 6 years, the highest Beneish M-Score of Mid-Con Energy Partners LP was -1.73. The lowest was -4.84. And the median was -3.14.


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 * 0.7414+0.528 * 1.2088+0.404 * 1.3452+0.892 * 0.7625+0.115 * 0.4789
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8623+4.679 * -0.4399-0.327 * 1.2
=-4.84

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $4.55 Mil.
Revenue was 26.061 + 38.264 + 12.74 + 19.215 = $96.28 Mil.
Gross Profit was 16.91 + 29.297 + 3.804 + 9.191 = $59.20 Mil.
Total Current Assets was $35.22 Mil.
Total Assets was $327.09 Mil.
Property, Plant and Equipment(Net PPE) was $286.91 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.17 Mil.
Selling, General & Admin. Expense(SGA) was $9.41 Mil.
Total Current Liabilities was $33.91 Mil.
Long-Term Debt was $150.00 Mil.
Net Income was -57.961 + -25.478 + -7.944 + -4.112 = $-95.50 Mil.
Non Operating Income was 0.012 + -0.054 + 0 + 0 = $-0.04 Mil.
Cash Flow from Operations was 17.091 + 12.556 + 10.495 + 8.283 = $48.43 Mil.
Accounts Receivable was $8.05 Mil.
Revenue was 51.616 + 35.453 + 19.444 + 19.759 = $126.27 Mil.
Gross Profit was 42.03 + 26.759 + 11.355 + 13.712 = $93.86 Mil.
Total Current Assets was $42.21 Mil.
Total Assets was $454.63 Mil.
Property, Plant and Equipment(Net PPE) was $407.30 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.88 Mil.
Selling, General & Admin. Expense(SGA) was $14.31 Mil.
Total Current Liabilities was $8.02 Mil.
Long-Term Debt was $205.00 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)
=(4.551 / 96.28) / (8.051 / 126.272)
=0.04726838 / 0.06375919
=0.7414

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)
=(29.297 / 126.272) / (16.91 / 96.28)
=0.74328434 / 0.61489406
=1.2088

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 - (35.217 + 286.908) / 327.086) / (1 - (42.207 + 407.295) / 454.628)
=0.01516726 / 0.01127515
=1.3452

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
=96.28 / 126.272
=0.7625

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))
=(21.877 / (21.877 + 407.295)) / (34.174 / (34.174 + 286.908))
=0.0509749 / 0.10643387
=0.4789

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)
=(9.411 / 96.28) / (14.313 / 126.272)
=0.09774616 / 0.11335054
=0.8623

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)
=((150 + 33.909) / 327.086) / ((205 + 8.016) / 454.628)
=0.56226497 / 0.46855011
=1.2

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
=(-95.495 - -0.042 - 48.425) / 327.086
=-0.4399

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 -4.84 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

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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.93360.88811.09781.08250.94270.75310.50220.55670.57850.7414
GMI 1.04031.08041.11431.1431.06391.00621.02240.97481.01921.2088
AQI 0.13680.4930.54270.40681.24642.40544.90674.15923.48681.3452
SGI 1.37661.19011.06651.11811.28441.57721.55671.53721.260.7625
DEPI 1.18750.89681.17031.10621.38311.45111.0050.8820.59450.4789
SGAI 0.88170.93530.87190.85620.93650.74120.50520.49090.53980.8623
LVGI 1.14371.1911.04581.01750.85510.7470.82650.77280.94211.2
TATA -0.1411-0.1496-0.1182-0.1347-0.0661-0.0615-0.0678-0.0902-0.2021-0.4399
M-score -3.20-3.34-2.98-3.06-2.35-1.73-1.03-1.42-2.52-4.84
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