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Xcel Energy Inc (NYSE:XEL)
Beneish M-Score
-2.72 (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.

Xcel Energy Inc has a M-score of -2.72 suggests that the company is not a manipulator.

XEL' s 10-Year Beneish M-Score Range
Min: -15.19   Max: -1.12
Current: -2.72

-15.19
-1.12

During the past 13 years, the highest Beneish M-Score of Xcel Energy Inc was -1.12. The lowest was -15.19. And the median was -2.73.


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 Xcel Energy Inc 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 * 0.9346+0.528 * 1.0457+0.404 * 0.9071+0.892 * 1.0755+0.115 * 1.0584
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0074+4.679 * -0.05-0.327 * 1.0188
=-2.72

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $1,352 Mil.
Revenue was 2685.096 + 3202.604 + 2730.822 + 2822.338 = $11,441 Mil.
Gross Profit was 1425.231 + 1502.326 + 1356.926 + 1642.007 = $5,926 Mil.
Total Current Assets was $3,124 Mil.
Total Assets was $34,718 Mil.
Property, Plant and Equipment(Net PPE) was $27,070 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,015 Mil.
Selling, General & Admin. Expense(SGA) was $285 Mil.
Total Current Liabilities was $3,060 Mil.
Long-Term Debt was $11,753 Mil.
Net Income was 195.164 + 261.221 + 150.055 + 364.752 = $971 Mil.
Non Operating Income was 40.322 + 22.998 + 65.276 + 30.206 = $159 Mil.
Cash Flow from Operations was 446.862 + 592.649 + 581.128 + 928.683 = $2,549 Mil.
Accounts Receivable was $1,345 Mil.
Revenue was 2578.913 + 2782.849 + 2551.135 + 2724.341 = $10,637 Mil.
Gross Profit was 1371.223 + 1410.02 + 1320.32 + 1660.521 = $5,762 Mil.
Total Current Assets was $2,818 Mil.
Total Assets was $32,266 Mil.
Property, Plant and Equipment(Net PPE) was $24,813 Mil.
Depreciation, Depletion and Amortization(DDA) was $987 Mil.
Selling, General & Admin. Expense(SGA) was $263 Mil.
Total Current Liabilities was $2,697 Mil.
Long-Term Debt was $10,816 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)
=(1352.403 / 11440.86) / (1345.363 / 10637.238)
=0.11820816 / 0.12647672
=0.9346

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)
=(1502.326 / 10637.238) / (1425.231 / 11440.86)
=0.54168986 / 0.51801088
=1.0457

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 - (3123.82 + 27070.377) / 34717.644) / (1 - (2818.2 + 24813.411) / 32266.262)
=0.13029245 / 0.14363768
=0.9071

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
=11440.86 / 10637.238
=1.0755

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))
=(986.963 / (986.963 + 24813.411)) / (1015.08 / (1015.08 + 27070.377))
=0.03825383 / 0.03614255
=1.0584

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)
=(284.629 / 11440.86) / (262.682 / 10637.238)
=0.02487829 / 0.02469457
=1.0074

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)
=((11752.778 + 3059.929) / 34717.644) / ((10816.477 + 2696.81) / 32266.262)
=0.42666222 / 0.41880547
=1.0188

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
=(971.192 - 158.802 - 2549.322) / 34717.644
=-0.05

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.

Xcel Energy Inc has a M-score of -2.72 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.

Xcel Energy Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.98650.93730.97771.00790.9615
GMI 0.8090.98030.96520.92921.043
AQI 0.88580.96530.96791.07130.8913
SGI 0.86091.06911.03330.95061.0777
DEPI 1.03531.04361.04521.13361.0322
SGAI 1.79711.23181.13540.9740.9286
LVGI 1.00460.99310.97860.99631.0226
TATA -0.0524-0.0444-0.0548-0.0393-0.0527
M-score -3.14-2.74-2.77-2.69-2.71

Xcel Energy Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.91050.95880.98691.00791.14681.08511.050.96150.96790.9346
GMI 0.96960.95050.93530.92920.94150.98491.02131.0431.06761.0457
AQI 0.97720.98620.99761.07131.02621.0171.02030.89130.89670.9071
SGI 1.00930.98110.95230.95060.9921.03751.05811.07771.09691.0755
DEPI 1.06191.06411.18861.13361.14871.10461.03231.03221.02731.0584
SGAI 1.03971.00350.98610.9740.97470.9630.94880.92860.95841.0074
LVGI 0.97680.98921.00720.99630.99770.99610.97191.02261.02921.0188
TATA -0.0496-0.0452-0.0386-2.7117-2.677-2.6224-2.5621-0.0529-0.0503-0.05
M-score -2.80-2.77-2.73-15.19-14.88-14.62-14.33-2.71-2.66-2.72
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