Switch to:
Cimarex Energy Co (NYSE:XEC)
Beneish M-Score
-5.16 (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 -5.16 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: -5.16

-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 * 1.1408+0.528 * 1.2207+0.404 * 1.6179+0.892 * 0.6115+0.115 * 0.7993
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8263+4.679 * -0.5284-0.327 * 1.5792
=-5.16

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $54 Mil.
Revenue was 298.873 + 240.6 + 311.279 + 356.055 = $1,207 Mil.
Gross Profit was 189.732 + 115.375 + 171.794 + 232.002 = $709 Mil.
Total Current Assets was $918 Mil.
Total Assets was $4,532 Mil.
Property, Plant and Equipment(Net PPE) was $2,959 Mil.
Depreciation, Depletion and Amortization(DDA) was $597 Mil.
Selling, General & Admin. Expense(SGA) was $102 Mil.
Total Current Liabilities was $403 Mil.
Long-Term Debt was $1,487 Mil.
Net Income was -270.29 + -186.131 + -630.508 + -763.284 = $-1,850 Mil.
Non Operating Income was 2.011 + 1.65 + 3.762 + 2.375 = $10 Mil.
Cash Flow from Operations was 128.644 + 85.06 + 114.954 + 206.001 = $535 Mil.
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.



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)
=(54.188 / 1206.807) / (77.68 / 1973.576)
=0.04490196 / 0.03936002
=1.1408

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)
=(1415.186 / 1973.576) / (708.903 / 1206.807)
=0.71706689 / 0.58742036
=1.2207

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 - (917.607 + 2958.814) / 4531.823) / (1 - (1267.449 + 5624.508) / 7568.504)
=0.14462215 / 0.08938979
=1.6179

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
=1206.807 / 1973.576
=0.6115

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))
=(871.33 / (871.33 + 5624.508)) / (596.67 / (596.67 + 2958.814))
=0.13413666 / 0.16781681
=0.7993

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)
=(102.451 / 1206.807) / (91.741 / 1973.576)
=0.08489427 / 0.04648466
=1.8263

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)
=((1486.795 + 403.326) / 4531.823) / ((1500 + 498.884) / 7568.504)
=0.41707741 / 0.26410556
=1.5792

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
=(-1850.213 - 9.798 - 534.659) / 4531.823
=-0.5284

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 -5.16 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 -0.1205-0.1248-0.5482-0.2818-0.1297-0.1441-0.1336-0.1077-0.131-0.5939
M-score -3.05-3.11-5.12-3.48-2.72-3.08-3.40-2.85-3.07-5.62

Cimarex Energy Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.17190.19060.87530.92261.62160.95663.70030.91360.80941.1408
GMI 0.98721.00651.02341.04321.0821.10161.13911.18941.20021.2207
AQI 0.85540.81430.8220.82110.9821.10321.35541.65411.55141.6179
SGI 1.33391.30881.24971.21331.00690.8530.69930.59920.60940.6115
DEPI 0.96480.99420.89950.89950.81110.67590.62780.55980.65930.7993
SGAI 0.94630.80770.86680.86390.95031.18491.44211.63561.63661.8263
LVGI 0.9981.19071.17681.17091.13460.96391.16711.39351.43971.5792
TATA -0.11-0.1087-0.1212-0.131-0.1853-0.2696-0.4171-0.5939-0.5825-0.5284
M-score -3.52-3.56-3.05-3.07-2.79-3.87-2.17-5.62-5.69-5.16
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)
FEEDBACK