Switch to:
Cimarex Energy Co (NYSE:XEC)
Beneish M-Score
-3.87 (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 -3.87 suggests that the company is not a manipulator.

XEC' s 10-Year Beneish M-Score Range
Min: -6.72   Max: 3.59
Current: -3.87

-6.72
3.59

During the past 13 years, the highest Beneish M-Score of Cimarex Energy Co was 3.59. The lowest was -6.72. And the median was -3.02.


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 * 0.9566+0.528 * 1.1016+0.404 * 1.1032+0.892 * 0.853+0.115 * 0.6759
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1849+4.679 * -0.2696-0.327 * 0.9639
=-3.87

* 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 $78 Mil.
Revenue was 424.283 + 361.002 + 538.551 + 649.74 = $1,974 Mil.
Gross Profit was 298.664 + 230.285 + 388.742 + 497.495 = $1,415 Mil.
Total Current Assets was $1,267 Mil.
Total Assets was $7,569 Mil.
Property, Plant and Equipment(Net PPE) was $5,625 Mil.
Depreciation, Depletion and Amortization(DDA) was $871 Mil.
Selling, General & Admin. Expense(SGA) was $92 Mil.
Total Current Liabilities was $499 Mil.
Long-Term Debt was $1,500 Mil.
Net Income was -600.215 + -414.941 + 75.792 + 144.315 = $-795 Mil.
Non Operating Income was 3.854 + 3.585 + 6.7 + 11.123 = $25 Mil.
Cash Flow from Operations was 257.372 + 113.173 + 347.395 + 502.201 = $1,220 Mil.
Accounts Receivable was $95 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.



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)
=(77.68 / 1973.576) / (95.201 / 2313.823)
=0.03936002 / 0.04114446
=0.9566

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)
=(230.285 / 2313.823) / (298.664 / 1973.576)
=0.78988885 / 0.71706689
=1.1016

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 - (1267.449 + 5624.508) / 7568.504) / (1 - (686.352 + 7032.124) / 8399.007)
=0.08938979 / 0.08102517
=1.1032

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
=1973.576 / 2313.823
=0.853

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))
=(701.125 / (701.125 + 7032.124)) / (871.33 / (871.33 + 5624.508))
=0.0906637 / 0.13413666
=0.6759

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)
=(91.741 / 1973.576) / (90.775 / 2313.823)
=0.04648466 / 0.03923161
=1.1849

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 + 498.884) / 7568.504) / ((1500 + 801.19) / 8399.007)
=0.26410556 / 0.27398358
=0.9639

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
=(-795.049 - 25.262 - 1220.141) / 7568.504
=-0.2696

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 -3.87 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.93550.9110.59681.71640.85391.0610.91250.98650.9236
GMI 1.05191.00320.9671.10090.92171.0261.02780.9941.0432
AQI 0.80940.91.26311.21460.78210.74270.8790.86130.8403
SGI 1.13281.12941.37670.51251.5981.08940.92381.23041.2133
DEPI 0.83820.95340.64811.52811.14621.06740.92970.990.8995
SGAI 1.161.16820.59481.82210.74850.96661.28720.97670.8639
LVGI 0.92141.02861.49310.89390.8720.96351.16131.00091.1774
TATA -0.1191-0.1228-0.5482-0.2818-0.1297-0.1441-0.1336-0.1077-0.1308
M-score -3.05-3.10-5.12-3.48-2.72-3.08-3.40-2.85-3.06

Cimarex Energy Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.99441.40770.21820.98670.17190.19060.87530.92361.62160.9566
GMI 1.02691.00050.99250.99380.98721.00651.02341.04321.0821.1016
AQI 0.80970.81340.81530.86130.85540.81430.8220.84030.9821.1032
SGI 0.92771.07761.19131.23021.33391.30881.24971.21331.00690.853
DEPI 0.95910.95350.96050.990.96480.99420.89950.89950.81110.6759
SGAI 1.30631.21670.95910.97690.94630.80770.86680.86390.95031.1849
LVGI 1.14111.02020.96991.00090.9981.19071.17681.17741.13460.9639
TATA -0.1297-0.1182-0.1212-0.1077-0.11-0.1087-0.1212-0.1308-0.1853-0.2696
M-score -3.32-2.71-3.66-2.85-3.52-3.56-3.05-3.06-2.79-3.87
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK