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Cimarex Energy Co (NYSE:XEC)
Beneish M-Score
-5.69 (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 -5.69 suggests that the company is not a manipulator.

XEC' s Beneish M-Score Range Over the Past 10 Years
Min: -6.72   Max: 3.52
Current: -5.69

-6.72
3.52

During the past 13 years, the highest Beneish M-Score of Cimarex Energy Co was 3.52. The lowest was -6.72. And the median was -3.04.


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 * 0.8094+0.528 * 1.2002+0.404 * 1.5514+0.892 * 0.6094+0.115 * 0.6593
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6366+4.679 * -0.5825-0.327 * 1.4397
=-5.69

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $62 Mil.
Revenue was 240.6 + 311.279 + 356.055 + 424.283 = $1,332 Mil.
Gross Profit was 115.375 + 171.794 + 232.002 + 298.664 = $818 Mil.
Total Current Assets was $931 Mil.
Total Assets was $4,901 Mil.
Property, Plant and Equipment(Net PPE) was $3,314 Mil.
Depreciation, Depletion and Amortization(DDA) was $690 Mil.
Selling, General & Admin. Expense(SGA) was $93 Mil.
Total Current Liabilities was $357 Mil.
Long-Term Debt was $1,486 Mil.
Net Income was -186.131 + -630.508 + -763.284 + -600.215 = $-2,180 Mil.
Non Operating Income was 1.65 + 3.762 + 2.375 + 3.854 = $12 Mil.
Cash Flow from Operations was 85.06 + 114.954 + 206.001 + 257.372 = $663 Mil.
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.



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)
=(61.591 / 1332.217) / (124.862 / 2185.962)
=0.04623196 / 0.05711993
=0.8094

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)
=(1610.587 / 2185.962) / (817.835 / 1332.217)
=0.73678637 / 0.61389023
=1.2002

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 - (931.09 + 3313.969) / 4901.261) / (1 - (561.185 + 6620.57) / 7860.051)
=0.13388432 / 0.08629664
=1.5514

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
=1332.217 / 2185.962
=0.6094

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))
=(848.868 / (848.868 + 6620.57)) / (690.244 / (690.244 + 3313.969))
=0.1136455 / 0.17237944
=0.6593

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)
=(92.579 / 1332.217) / (92.818 / 2185.962)
=0.06949243 / 0.04246094
=1.6366

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)
=((1486.211 + 357.092) / 4901.261) / ((1500 + 553.195) / 7860.051)
=0.3760875 / 0.26121904
=1.4397

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
=(-2180.138 - 11.641 - 663.387) / 4901.261
=-0.5825

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 -5.69 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.93550.9110.59681.71640.85391.0610.91250.98650.92260.9136
GMI 1.05191.00320.9671.10090.92171.0261.02780.9941.04321.1894
AQI 0.80940.91.26311.21460.78210.74270.8790.86130.82111.6541
SGI 1.13281.12941.37670.51251.5981.08940.92381.23041.21330.5992
DEPI 0.83820.95340.64811.52811.14621.06740.92970.990.89950.5598
SGAI 1.161.16820.59481.82210.74850.96661.28720.97670.86391.6356
LVGI 0.92141.02861.49310.89390.8720.96351.16131.00091.17091.3935
TATA -0.1205-0.1248-0.5498-0.2818-0.1297-0.1441-0.1336-0.1077-0.131-0.5939
M-score -3.05-3.11-5.13-3.48-2.72-3.08-3.40-2.85-3.07-5.62

Cimarex Energy Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.98670.17190.19060.87530.92261.62160.95663.70030.91360.8094
GMI 0.99380.98721.00651.02341.04321.0821.10161.13911.18941.2002
AQI 0.86130.85540.81430.8220.82110.9821.10321.35541.65411.5514
SGI 1.23021.33391.30881.24971.21331.00690.8530.69930.59920.6094
DEPI 0.990.96480.99420.89950.89950.81110.67590.62780.55980.6593
SGAI 0.97690.94630.80770.86680.86390.95031.18491.44211.63561.6366
LVGI 1.00090.9981.19071.17681.17091.13460.96391.16711.39351.4397
TATA -0.1077-0.11-0.1087-0.1212-0.131-0.1853-0.2696-0.4171-0.5939-0.5825
M-score -2.85-3.52-3.56-3.05-3.07-2.79-3.87-2.17-5.62-5.69
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