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Cimarex Energy Co (NYSE:XEC)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

XEC' s 10-Year Beneish M-Score Range
Min: -6.72   Max: 3.59
Current: -2.79

-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 -3.00.


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 * 1.6216+0.528 * 1.082+0.404 * 0.982+0.892 * 1.0069+0.115 * 0.8111
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9503+4.679 * -0.1853-0.327 * 1.1346
=-2.79

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $125 Mil.
Revenue was 361.002 + 538.551 + 649.74 + 636.669 = $2,186 Mil.
Gross Profit was 230.285 + 388.742 + 497.495 + 494.065 = $1,611 Mil.
Total Current Assets was $561 Mil.
Total Assets was $7,860 Mil.
Property, Plant and Equipment(Net PPE) was $6,621 Mil.
Depreciation, Depletion and Amortization(DDA) was $849 Mil.
Selling, General & Admin. Expense(SGA) was $93 Mil.
Total Current Liabilities was $553 Mil.
Long-Term Debt was $1,500 Mil.
Net Income was -414.941 + 75.792 + 144.315 + 148.64 = $-46 Mil.
Non Operating Income was 3.585 + 6.7 + 11.123 + 4.129 = $26 Mil.
Cash Flow from Operations was 113.173 + 347.395 + 502.201 + 421.745 = $1,385 Mil.
Accounts Receivable was $76 Mil.
Revenue was 599.216 + 516.602 + 561.336 + 493.757 = $2,171 Mil.
Gross Profit was 471.043 + 410.193 + 452.362 + 397.118 = $1,731 Mil.
Total Current Assets was $515 Mil.
Total Assets was $7,619 Mil.
Property, Plant and Equipment(Net PPE) was $6,434 Mil.
Depreciation, Depletion and Amortization(DDA) was $653 Mil.
Selling, General & Admin. Expense(SGA) was $97 Mil.
Total Current Liabilities was $729 Mil.
Long-Term Debt was $1,025 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)
=(124.862 / 2185.962) / (76.471 / 2170.911)
=0.05711993 / 0.0352253
=1.6216

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)
=(388.742 / 2170.911) / (230.285 / 2185.962)
=0.79723029 / 0.73678637
=1.082

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 - (561.185 + 6620.57) / 7860.051) / (1 - (514.678 + 6434.438) / 7618.635)
=0.08629664 / 0.08787913
=0.982

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
=2185.962 / 2170.911
=1.0069

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))
=(653.367 / (653.367 + 6434.438)) / (848.868 / (848.868 + 6620.57))
=0.09218185 / 0.1136455
=0.8111

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)
=(92.818 / 2185.962) / (96.999 / 2170.911)
=0.04246094 / 0.04468124
=0.9503

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 + 553.195) / 7860.051) / ((1025 + 728.986) / 7618.635)
=0.26121904 / 0.23022313
=1.1346

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
=(-46.194 - 25.537 - 1384.514) / 7860.051
=-0.1853

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 -2.79 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.91230.99441.40770.21820.98670.17190.19060.87530.92361.6216
GMI 1.0281.02691.00050.99250.99380.98721.00651.02341.04321.082
AQI 0.8790.80970.81340.81530.86130.85540.81430.8220.84030.982
SGI 0.9240.92771.07761.19131.23021.33391.30881.24971.21331.0069
DEPI 0.92970.95910.95350.96050.990.96480.99420.89950.89950.8111
SGAI 1.2871.30631.21670.95910.97690.94630.80770.86680.86390.9503
LVGI 1.16131.14111.02020.96991.00090.9981.19071.17681.17741.1346
TATA -0.1336-0.1297-0.1182-0.1212-0.1077-0.11-0.1087-0.1212-0.1308-0.1853
M-score -3.40-3.32-2.71-3.66-2.85-3.52-3.56-3.05-3.06-2.79
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