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Chesapeake Energy Beneish M-Score

: -7.00 (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.

Good Sign:

Beneish M-Score -7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CHK' s Beneish M-Score Range Over the Past 10 Years
Min: -7.12   Med: -2.49   Max: 27.91
Current: -7

During the past 13 years, the highest Beneish M-Score of Chesapeake Energy was 27.91. The lowest was -7.12. And the median was -2.49.


Chesapeake Energy Beneish M-Score Historical Data

The historical data trend for Chesapeake 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.

Chesapeake 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 -3.62 -2.90 -2.54 -3.22 -0.70

Chesapeake 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 -2.39 -2.15 -0.70 -2.94 -7.00

Competitive Comparison

For the Oil & Gas E&P subindustry, Chesapeake 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.

   

Chesapeake Energy Beneish M-Score Distribution

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

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



Chesapeake 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 Chesapeake 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 * 1.523+0.528 * -8.214+0.404 * 0.5884+0.892 * 1.7574+0.115 * 0.8389
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4592+4.679 * -0.1412-0.327 * 1.1735
=-7.00

* 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 $1,804 Mil.
Revenue was 3499 + 656 + 0 + 887 = $5,042 Mil.
Gross Profit was 1371 + -1019 + 0 + -306 = $46 Mil.
Total Current Assets was $2,010 Mil.
Total Assets was $13,899 Mil.
Property, Plant and Equipment(Net PPE) was $11,778 Mil.
Depreciation, Depletion and Amortization(DDA) was $860 Mil.
Selling, General, & Admin. Expense(SGA) was $92 Mil.
Total Current Liabilities was $4,241 Mil.
Long-Term Debt & Capital Lease Obligation was $3,046 Mil.
Net Income was 1237 + -764 + 0 + -345 = $128 Mil.
Non Operating Income was 30 + 295 + 0 + 3 = $328 Mil.
Cash Flow from Operations was 909 + 853 + 0 + 0 = $1,762 Mil.
Total Receivables was $674 Mil.
Revenue was 691 + 0 + 1219 + 959 = $2,869 Mil.
Gross Profit was -399 + 0 + 222 + -38 = $-215 Mil.
Total Current Assets was $1,354 Mil.
Total Assets was $6,999 Mil.
Property, Plant and Equipment(Net PPE) was $5,550 Mil.
Depreciation, Depletion and Amortization(DDA) was $336 Mil.
Selling, General, & Admin. Expense(SGA) was $114 Mil.
Total Current Liabilities was $1,866 Mil.
Long-Term Debt & Capital Lease Obligation was $1,261 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)
=(1804 / 5042) / (674 / 2869)
=0.35779453 / 0.23492506
=1.523

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)
=(-215 / 2869) / (46 / 5042)
=-0.074939 / 0.00912336
=-8.214

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 - (2010 + 11778) / 13899) / (1 - (1354 + 5550) / 6999)
=0.00798619 / 0.01357337
=0.5884

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
=5042 / 2869
=1.7574

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))
=(336 / (336 + 5550)) / (860 / (860 + 11778))
=0.05708461 / 0.06804874
=0.8389

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)
=(92 / 5042) / (114 / 2869)
=0.01824673 / 0.0397351
=0.4592

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)
=((3046 + 4241) / 13899) / ((1261 + 1866) / 6999)
=0.52428232 / 0.44677811
=1.1735

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
=(128 - 328 - 1762) / 13899
=-0.1412

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.

Chesapeake Energy has a M-score of -7.00 suggests that the company is unlikely to be a manipulator.


Chesapeake Energy Beneish M-Score Related Terms

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


Chesapeake Energy Business Description

Chesapeake Energy logo
Address
6100 North Western Avenue, Oklahoma City, OK, USA, 73118
Chesapeake Energy Corp is a US-based exploration and production company. It is engaged in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs. Geographically, the company focuses its exploration, development, acquisition, and production efforts in the operating areas of Marcellus, Northern Appalachian Basin in Pennsylvania; Haynesville, Northwestern Louisiana (Gulf Coast); Eagle Ford, South Texas; Powder River Basin, Stacked pay in Wyoming; and Brazos Valley - Southeast Texas.
Executives
Bx Vine Ml Holdco Gp L.l.c. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Bx Vine Ml Holdco L.p. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Bx Vine Intermediate Holdco L.p. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Brookfield Us Inc. 10 percent owner BROOKFIELD PLACE 250 VESEY STREET, 15TH FLOOR NEW YORK NY 10281-1023
Bam Partners Trust 10 percent owner 181 BAY STREET SUITE 300 TORONTO A6 M5J 2T3
Ocm Xi Chk Holdings, Llc 10 percent owner 333 S. GRAND AVE. 28TH FLOOR LOS ANGELES CA 90071
Ocm Xb Chk Holdings, Llc 10 percent owner 333 S. GRAND AVE. 28TH FLOOR LOS ANGELES CA 90071
Brookfield Public Securities Group Holdings Llc 10 percent owner 250 VESEY STREET 15TH FLOOR NEW YORK NY 10281
Larson Gregory M. officer: VP-Accounting & Controller 6100 N. WESTERN AVENUE OKLAHOMA CITY OK 73118
Viets Joshua J. officer: EVP & COO 6100 N. WESTERN AVENUE OKLAHOMA CITY OK 73118
Singh Mohit officer: EVP & CFO 6100 N. WESTERN AVENUE OKLAHOMA CITY OK 73118
Schwarzman Stephen A 10 percent owner C/O BLACKSTONE INC. 345 PARK AVE NEW YORK NY 10154
Blackstone Group Inc 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Blackstone Group Management L.l.c. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Blackstone Holdings Iii L.p. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154

Chesapeake Energy Headlines

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