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Cheniere Energy Beneish M-Score

: 2.76 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 2.76 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Cheniere Energy's Beneish M-Score or its related term are showing as below:

LNG' s Beneish M-Score Range Over the Past 10 Years
Min: -2510.69   Med: -1.68   Max: 10000000
Current: 2.76

During the past 13 years, the highest Beneish M-Score of Cheniere Energy was 10000000.00. The lowest was -2510.69. And the median was -1.68.


Cheniere Energy Beneish M-Score Historical Data

The historical data trend for Cheniere Energy's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cheniere Energy Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.34 -2.27 -2.32 -2.30 1.09

Cheniere Energy Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.54 2.10 1.09 -11.15 2.76

Competitive Comparison

For the Oil & Gas Midstream subindustry, Cheniere Energy's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Cheniere Energy Beneish M-Score Distribution

For the Oil & Gas industry and Energy sector, Cheniere Energy's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Cheniere Energy's Beneish M-Score falls into.



Cheniere Energy Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Cheniere Energy 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 * 1.2597+0.528 * 9.0984+0.404 * 1.7881+0.892 * 2.4385+0.115 * 0.9305
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4771+4.679 * -0.2097-0.327 * 0.9168
=2.76

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $1,883 Mil.
Revenue was 8007 + 7484 + 6557 + 3200 = $25,248 Mil.
Gross Profit was 1979 + -123 + 934 + -1927 = $863 Mil.
Total Current Assets was $6,186 Mil.
Total Assets was $41,313 Mil.
Property, Plant and Equipment(Net PPE) was $32,914 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,064 Mil.
Selling, General, & Admin. Expense(SGA) was $356 Mil.
Total Current Liabilities was $7,556 Mil.
Long-Term Debt & Capital Lease Obligation was $27,734 Mil.
Net Income was 741 + -865 + -1323 + -1084 = $-2,531 Mil.
Non Operating Income was -29 + -10 + -32 + -63 = $-134 Mil.
Cash Flow from Operations was 2517 + 2655 + 412 + 684 = $6,268 Mil.
Total Receivables was $613 Mil.
Revenue was 3017 + 3090 + 2787 + 1460 = $10,354 Mil.
Gross Profit was 605 + 1468 + 688 + 459 = $3,220 Mil.
Total Current Assets was $3,665 Mil.
Total Assets was $36,752 Mil.
Property, Plant and Equipment(Net PPE) was $31,986 Mil.
Depreciation, Depletion and Amortization(DDA) was $960 Mil.
Selling, General, & Admin. Expense(SGA) was $306 Mil.
Total Current Liabilities was $3,526 Mil.
Long-Term Debt & Capital Lease Obligation was $30,716 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(1883 / 25248) / (613 / 10354)
=0.07458016 / 0.05920417
=1.2597

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)
=(3220 / 10354) / (863 / 25248)
=0.31099092 / 0.03418093
=9.0984

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (6186 + 32914) / 41313) / (1 - (3665 + 31986) / 36752)
=0.05356667 / 0.02995755
=1.7881

4. SGI = Sales Growth Index

Ratio of Revenue 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
=25248 / 10354
=2.4385

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(960 / (960 + 31986)) / (1064 / (1064 + 32914))
=0.02913859 / 0.03131438
=0.9305

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(356 / 25248) / (306 / 10354)
=0.01410013 / 0.0295538
=0.4771

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((27734 + 7556) / 41313) / ((30716 + 3526) / 36752)
=0.85421054 / 0.9317044
=0.9168

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
=(-2531 - -134 - 6268) / 41313
=-0.2097

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Cheniere Energy has a M-score of 2.76 signals that the company is likely to be a manipulator.


Cheniere Energy Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Cheniere Energy's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Cheniere Energy Business Description

Cheniere Energy logo
Traded in Other Exchanges
Address
700 Milam Street, Suite 1900, Houston, TX, USA, 77002
Cheniere Energy owns and operates the Sabine Pass liquefied natural gas terminal via its stake in Cheniere Partners. It also owns the under-development Corpus Christi LNG terminals as well as Cheniere Marketing, which markets LNG using Cheniere's gas volumes.
Executives
Peak Scott Bennett director 1200 SMITH STREET HOUSTON TX 77002
Slack David L officer: VP & Chief Accounting Officer 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Collawn Patricia K director 414 SILVER AVE SW MS 1275 ALBUQUERQUE NM 87102-3289
Mitchelmore Lorraine director 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Teno Andrew director C/O FIR TREE INC. 55 WEST 46TH STREET, 29TH FLOOR NEW YORK NY 10036
Klimczak Sean director C/O THE BLACKSTONE GROUP 345 PARK AVE. NEW YORK NY 10154
Davis Zach officer: SVP & CFO 700 MILAM STREET SUITE 1900 HOUSTON TX 77008
Stephenson Aaron D. officer: SVP, Operations 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Evans Michele A director LOCKHEED MARTIN CORPORATION 6801 ROCKLEDGE DRIVE BETHESDA MD 20817
Mather Courtney director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Lipinski John J director C/O CVR ENERGY, INC. 2277 PLAZA DRIVE, SUITE 500 SUGAR LAND TX 77479
Langham Andrew director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Lehotsky Ed officer: SVP, Engineer and Construction 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Shanda Doug officer: SVP, Operations 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Markowitz Sean N officer: Interim GC & Corp Sec 700 MILAM STREET SUITE 1900 HOUSTON TX 77002

Cheniere Energy Headlines

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