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Cimarex Energy Co (NYSE:XEC)
Beneish M-Score
-2.91 (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.

Cimarex Energy Co has a M-score of -2.91 suggests that the company is not a manipulator.

XEC' s 10-Year Beneish M-Score Range
Min: -6.02   Max: -0.12
Current: -2.91

-6.02
-0.12

During the past 12 years, the highest Beneish M-Score of Cimarex Energy Co was -0.12. The lowest was -6.02. And the median was -2.91.


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 Cimarex Energy Co 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 * 0.8998+0.528 * 1.0065+0.404 * 0.8143+0.892 * 1.3088+0.115 * 0.9942
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8077+4.679 * -0.1087-0.327 * 1.1907
=-2.91

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $449 Mil.
Revenue was 636.669 + 599.216 + 516.602 + 561.336 = $2,314 Mil.
Gross Profit was 494.065 + 471.043 + 410.193 + 452.362 = $1,828 Mil.
Total Current Assets was $686 Mil.
Total Assets was $8,399 Mil.
Property, Plant and Equipment(Net PPE) was $7,032 Mil.
Depreciation, Depletion and Amortization(DDA) was $701 Mil.
Selling, General & Admin. Expense(SGA) was $91 Mil.
Total Current Liabilities was $801 Mil.
Long-Term Debt was $1,500 Mil.
Net Income was 148.64 + 138.457 + 206.827 + 138.37 = $632 Mil.
Non Operating Income was 4.129 + 6.955 + 7.881 + 2.263 = $21 Mil.
Cash Flow from Operations was 421.745 + 348.024 + 383.6 + 370.962 = $1,524 Mil.
Accounts Receivable was $382 Mil.
Revenue was 493.757 + 426.356 + 440.868 + 406.912 = $1,768 Mil.
Gross Profit was 397.118 + 332.18 + 352.051 + 324.236 = $1,406 Mil.
Total Current Assets was $487 Mil.
Total Assets was $6,796 Mil.
Property, Plant and Equipment(Net PPE) was $5,634 Mil.
Depreciation, Depletion and Amortization(DDA) was $558 Mil.
Selling, General & Admin. Expense(SGA) was $86 Mil.
Total Current Liabilities was $672 Mil.
Long-Term Debt was $892 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)
=(449.456 / 2313.823) / (381.634 / 1767.893)
=0.19424822 / 0.2158694
=0.8998

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)
=(471.043 / 1767.893) / (494.065 / 2313.823)
=0.79506226 / 0.78988885
=1.0065

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 - (686.352 + 7032.124) / 8399.007) / (1 - (486.541 + 5633.609) / 6796.37)
=0.08102517 / 0.09949723
=0.8143

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
=2313.823 / 1767.893
=1.3088

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))
=(558.086 / (558.086 + 5633.609)) / (701.125 / (701.125 + 7032.124))
=0.09013461 / 0.0906637
=0.9942

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)
=(90.775 / 2313.823) / (85.873 / 1767.893)
=0.03923161 / 0.04857364
=0.8077

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)
=((1500 + 801.19) / 8399.007) / ((892 + 671.816) / 6796.37)
=0.27398358 / 0.23009577
=1.1907

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
=(632.294 - 21.228 - 1524.331) / 8399.007
=-0.1087

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.

Cimarex Energy Co has a M-score of -2.91 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.

Cimarex Energy Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.93550.9110.59681.71640.85391.0610.91250.9865
GMI 1.05191.0032-1.1205-0.95010.92171.0261.02780.994
AQI 0.80940.91.26311.21460.78210.81260.80330.8613
SGI 1.13281.12941.37670.51251.5981.08940.92381.2304
DEPI 0.83820.95340.64811.52811.14621.06740.92970.99
SGAI 1.161.16820.59481.82210.74850.96661.28720.9767
LVGI 0.92141.02861.49810.89080.8720.95091.17671.0009
TATA -0.1191-0.1228-0.5498-0.2818-0.1297-0.1422-0.1336-0.1077
M-score -3.05-3.10-6.23-4.56-2.72-3.04-3.43-2.85

Cimarex Energy Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.06180.87821.050.91230.99441.40770.980.98670.90640.8998
GMI 1.01731.03091.03361.0281.02691.00050.99250.99380.98721.0065
AQI 0.79880.82490.82760.80330.80970.81340.81530.86130.85540.8143
SGI 1.10220.97630.92970.9240.92771.07761.19131.23021.33391.3088
DEPI 1.02420.99230.98740.92970.95910.95350.96050.990.96480.9942
SGAI 0.89021.03131.24281.2871.30631.21670.95910.97690.94630.8077
LVGI 1.03841.16161.29511.17671.14111.02020.96991.00090.9981.1907
TATA -0.1351-0.1352-0.1252-0.1336-0.1297-0.1182-0.1212-0.1077-0.11-0.1087
M-score -3.03-3.36-3.27-3.43-3.32-2.71-2.96-2.85-2.84-2.91
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