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Cimarex Energy Co (NYSE:XEC)
Beneish M-Score
-5.62 (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 -5.62 suggests that the company is not a manipulator.

XEC' s Beneish M-Score Range Over the Past 10 Years
Min: -5.62   Max: 3.52
Current: -5.62

-5.62
3.52

During the past 13 years, the highest Beneish M-Score of Cimarex Energy Co was 3.52. The lowest was -5.62. And the median was -3.10.


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 * 0.9136+0.528 * 1.1894+0.404 * 1.6541+0.892 * 0.5992+0.115 * 0.5598
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6356+4.679 * -0.5939-0.327 * 1.3935
=-5.62

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $225 Mil.
Revenue was 311.279 + 356.055 + 424.283 + 361.002 = $1,453 Mil.
Gross Profit was 171.794 + 232.002 + 298.664 + 230.285 = $933 Mil.
Total Current Assets was $1,078 Mil.
Total Assets was $5,243 Mil.
Property, Plant and Equipment(Net PPE) was $3,506 Mil.
Depreciation, Depletion and Amortization(DDA) was $779 Mil.
Selling, General & Admin. Expense(SGA) was $94 Mil.
Total Current Liabilities was $410 Mil.
Long-Term Debt was $1,486 Mil.
Net Income was -630.508 + -763.284 + -600.215 + -414.941 = $-2,409 Mil.
Non Operating Income was 3.762 + 2.375 + 3.854 + 3.585 = $14 Mil.
Cash Flow from Operations was 114.954 + 206.001 + 257.372 + 113.173 = $692 Mil.
Accounts Receivable was $412 Mil.
Revenue was 538.551 + 649.74 + 636.669 + 599.216 = $2,424 Mil.
Gross Profit was 388.742 + 497.495 + 494.065 + 471.043 = $1,851 Mil.
Total Current Assets was $932 Mil.
Total Assets was $8,708 Mil.
Property, Plant and Equipment(Net PPE) was $7,115 Mil.
Depreciation, Depletion and Amortization(DDA) was $806 Mil.
Selling, General & Admin. Expense(SGA) was $96 Mil.
Total Current Liabilities was $776 Mil.
Long-Term Debt was $1,483 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)
=(225.36 / 1452.619) / (411.672 / 2424.176)
=0.15514047 / 0.16981935
=0.9136

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)
=(232.002 / 2424.176) / (171.794 / 1452.619)
=0.76370074 / 0.64211263
=1.1894

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 - (1077.93 + 3506.155) / 5243.286) / (1 - (931.804 + 7114.742) / 8708.469)
=0.12572288 / 0.07600911
=1.6541

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
=1452.619 / 2424.176
=0.5992

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))
=(806.021 / (806.021 + 7114.742)) / (778.923 / (778.923 + 3506.155))
=0.10176052 / 0.18177569
=0.5598

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)
=(94.247 / 1452.619) / (96.161 / 2424.176)
=0.06488074 / 0.0396675
=1.6356

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)
=((1485.62 + 410.067) / 5243.286) / ((1483.176 + 776.327) / 8708.469)
=0.3615456 / 0.25946042
=1.3935

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
=(-2408.948 - 13.576 - 691.5) / 5243.286
=-0.5939

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 -5.62 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.21820.98670.17190.19060.87530.92261.62160.95663.70030.9136
GMI 0.99250.99380.98721.00651.02341.04321.0821.10161.13911.1894
AQI 0.81530.86130.85540.81430.8220.82110.9821.10321.35541.6541
SGI 1.19131.23021.33391.30881.24971.21331.00690.8530.69930.5992
DEPI 0.96050.990.96480.99420.89950.89950.81110.67590.62780.5598
SGAI 0.95910.97690.94630.80770.86680.86390.95031.18491.44211.6356
LVGI 0.96991.00090.9981.19071.17681.17091.13460.96391.16711.3935
TATA -0.1212-0.1077-0.11-0.1087-0.1212-0.131-0.1853-0.2696-0.4171-0.5939
M-score -3.66-2.85-3.52-3.56-3.05-3.07-2.79-3.87-2.17-5.62
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