SRV (NXG Cushing Midstream Energy Fund) Beneish M-Score : 5.83 (As of Dec. 14, 2024)

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What is NXG Cushing Midstream Energy Fund Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 5.83 higher than -1.78, which implies that the company might have manipulated its financial results.

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

SRV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.94 Med: -1.16 Max: 5.83
Current: 5.83

During the past 7 years, the highest Beneish M-Score of NXG Cushing Midstream Energy Fund was 5.83. The lowest was -3.94. And the median was -1.16.

NXG Cushing Midstream Energy Fund 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 NXG Cushing Midstream Energy Fund for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 12.0876

0.528 * 1

0.404 * 1

0.892 * 0.2047

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 4.9499

4.679 * 0.034348

0.327 * 3.0322

5.83

* 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 (Nov23) TTM:

Last Year (Nov22) TTM:

Total Receivables was $0.48 Mil.
Revenue was $3.76 Mil.
Gross Profit was $3.76 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $106.91 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.62 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $19.32 Mil.
Net Income was $3.38 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $-0.29 Mil.

Total Receivables was $0.19 Mil.
Revenue was $18.39 Mil.
Gross Profit was $18.39 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $122.77 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.61 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $7.32 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)
	=	(0.48 / 3.764)	/	(0.194 / 18.389)
	=	0.127524	/	0.01055
	=	12.0876

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)
	=	(18.389 / 18.389)	/	(3.764 / 3.764)
	=	1	/	1
	=	1

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 - (0 + 0) / 106.906)	/	(1 - (0 + 0) / 122.765)
	=	1	/	1
	=	1

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
	=	3.764	/	18.389
	=	0.2047

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))
	=	(0 / (0 + 0))	/	(0 / (0 + 0))
	=		/
	=	1

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)
	=	(0.615 / 3.764)	/	(0.607 / 18.389)
	=	0.16339	/	0.033009
	=	4.9499

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)
	=	((19.315 + 0) / 106.906)	/	((7.315 + 0) / 122.765)
	=	0.180673	/	0.059585
	=	3.0322

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
	=	(3.379 - 0	-	-0.293)	/	106.906
	=	0.034348

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.

NXG Cushing Midstream Energy Fund has a M-score of 5.83 signals that the company is likely to be a manipulator.

NXG Cushing Midstream Energy Fund Beneish M-Score Related Terms

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NXG Cushing Midstream Energy Fund Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » NXG Cushing Midstream Energy Fund (NYSE:SRV) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

600 N. Pearl Street, Suite 1205, Dallas, TX, USA, 75201

Website

http://www.cushingcef.com

NXG Cushing Midstream Energy Fund is a non-diversified, closed-end management investment company with an investment objective of seeking a high after-tax total return from a combination of capital appreciation and current income. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in midstream energy investments.

Executives

Todd Sunderland	other: Adviser COO	300 CRESCENT COURT, SUITE 1700, DALLAS TX 75201
John M. Musgrave	other: Portfolio Manager	8117 PRESTON ROAD, SUITE 440, DALLAS TX 75225
Andrea Mullins	director	3060 PEACHTREE ROAD NW, SUITE 500, ATLANTA GA 30305
John Alban	officer: CFO/Treasurer and Interim CCO	THE CUSHING MLP TOTAL RETURN FUND, 3300 OAK LAWN AVENUE, SUITE 650, DALLAS TX 75219
Jeffrey A Engelsman	officer: Chief Compliance Officer	865 SOUTH FIGUEROA STREET, SUITE 1800, LOS ANGELES CA 90017
Saba Capital Management, L.p.	10 percent owner	405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
Mark Rhodes	officer: President	300 CRESCENT COURT, SUITE 1700, DALLAS TX 75201
Blake Nelson	officer: Chief Financial Officer	8117 PRESTON ROAD, SUITE 440, DALLAS TX 75225
Brian R Bruce	director	5945 GLENDOWER LANE, PLANO TX 75093
Boaz Weinstein	10 percent owner	405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174
Mathew Calabro	officer: Chief Compliance Officer	8117 PRESTON ROAD, SUITE 440, DALLAS TX 75225
Saket Kumar	other: Adviser Managing Partner	300 CRESCENT COURT, SUITE 1700, DALLAS TX 75201
Brenda A Cline	other: Trustee	5101 TENNYSON PARKWAY, PLANO TX 75024
Jerry V Swank	officer: President and CEO	3300 OAK LAWN AVENUE, SUITE 650, DALLAS TX 75219
Daniel L Spears	other: Partner	C/O EMERALD OIL, INC., 200 COLUMBINE, SUITE 500, DENVER CO 80206