Energy Company of Minas Gerais (Energy Company of Minas Gerais) Beneish M-Score : -2.74 (As of May. 12, 2024)

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What is Energy Company of Minas Gerais Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.74 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Energy Company of Minas Gerais's Beneish M-Score or its related term are showing as below:

CEMCF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.26 Med: -2.61 Max: -2.11
Current: -2.74

During the past 13 years, the highest Beneish M-Score of Energy Company of Minas Gerais was -2.11. The lowest was -3.26. And the median was -2.61.

Energy Company of Minas Gerais Beneish M-Score Historical Data

The historical data trend for Energy Company of Minas Gerais's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Energy Company of Minas Gerais Beneish M-Score Chart

Energy Company of Minas Gerais Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.16

-2.73

-2.27

-3.26

-2.74

Energy Company of Minas Gerais Quarterly Data
	Dec18	Mar19	Jun19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-3.26	-	-3.35	-3.12	-2.74

Competitive Comparison of Energy Company of Minas Gerais's Beneish M-Score

For the Utilities - Diversified subindustry, Energy Company of Minas Gerais's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Energy Company of Minas Gerais's Beneish M-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Energy Company of Minas Gerais's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Energy Company of Minas Gerais's Beneish M-Score falls into.

Energy Company of Minas Gerais Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Energy Company of Minas Gerais for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.8578

0.528 * 0.8394

0.404 * 1.0282

0.892 * 1.1051

0.115 * 1.5442

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9389

4.679 * -0.037765

0.327 * 0.9538

-2.68

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $1,506 Mil.
Revenue was 2032.107 + 1908.727 + 1817.071 + 1660.139 = $7,418 Mil.
Gross Profit was 330.009 + 539.174 + 416.048 + 343.47 = $1,629 Mil.
Total Current Assets was $2,422 Mil.
Total Assets was $11,225 Mil.
Property, Plant and Equipment(Net PPE) was $746 Mil.
Depreciation, Depletion and Amortization(DDA) was $255 Mil.
Selling, General, & Admin. Expense(SGA) was $218 Mil.
Total Current Liabilities was $2,672 Mil.
Long-Term Debt & Capital Lease Obligation was $1,542 Mil.
Net Income was 384.602 + 250.533 + 256.44 + 268.402 = $1,160 Mil.
Non Operating Income was 105.373 + 39.83 + 48.376 + 49.725 = $243 Mil.
Cash Flow from Operations was -174.862 + 965.234 + 366.481 + 183.735 = $1,341 Mil.

Total Receivables was $1,589 Mil.
Revenue was 1749.888 + 1758.965 + 1627.153 + 1576.843 = $6,713 Mil.
Gross Profit was 459.876 + 409.603 + 70.474 + 297.203 = $1,237 Mil.
Total Current Assets was $2,567 Mil.
Total Assets was $10,232 Mil.
Property, Plant and Equipment(Net PPE) was $522 Mil.
Depreciation, Depletion and Amortization(DDA) was $340 Mil.
Selling, General, & Admin. Expense(SGA) was $210 Mil.
Total Current Liabilities was $2,136 Mil.
Long-Term Debt & Capital Lease Obligation was $1,892 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(1506.184 / 7418.044)	/	(1589.011 / 6712.849)
	=	0.203043	/	0.236712
	=	0.8578

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)
	=	(1237.156 / 6712.849)	/	(1628.701 / 7418.044)
	=	0.184297	/	0.219559
	=	0.8394

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (2422.344 + 745.745) / 11224.948)	/	(1 - (2567.011 + 522.172) / 10232.013)
	=	0.717764	/	0.698086
	=	1.0282

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	7418.044	/	6712.849
	=	1.1051

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(339.506 / (339.506 + 522.172))	/	(255.451 / (255.451 + 745.745))
	=	0.394006	/	0.255146
	=	1.5442

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(217.745 / 7418.044)	/	(209.856 / 6712.849)
	=	0.029353	/	0.031262
	=	0.9389

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((1541.9 + 2672.15) / 11224.948)	/	((1891.753 + 2135.776) / 10232.013)
	=	0.375418	/	0.39362
	=	0.9538

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
	=	(1159.977 - 243.304	-	1340.588)	/	11224.948
	=	-0.037765

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Energy Company of Minas Gerais has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.

Energy Company of Minas Gerais Beneish M-Score Related Terms

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Energy Company of Minas Gerais (Energy Company of Minas Gerais) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Energy Company of Minas Gerais (OTCPK:CEMCF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CIG.C:USA CIG:USA CIGN:Mexico XCMIG:Spain CIDS:Germany CIDA:Germany CID:Germany CIDA:Germany CID:Germany CMIG4:Brazil CMIG3:Brazil

Address

Avenida Barbacena, 1200, Belo Horizonte, MG, BRA, 30190-131

Website

https://www.cemig.com.br

Cia Energetica DE Minas Gerais - Cemig Formerly Energy Company of Minas Gerais is a Brazilian power company that generates, transmits, and distributes electricity. As one of the largest power companies in Brazil, the firm operates across most Brazilian states and Chile. The company has various subsidiaries and operates chiefly through its generation, transmission, distribution, and gas segments. The majority of the company's revenue is derived from electricity sales to consumers. The company generates power primarily through hydroelectric resources and secondarily through thermal and wind resources.