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Canacol Energy (TSX:CNE) Beneish M-Score : -2.82 (As of Dec. 14, 2024)


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What is Canacol Energy Beneish M-Score?

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 -2.82 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:CNE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.74   Med: -2.8   Max: 0.68
Current: -2.82

During the past 13 years, the highest Beneish M-Score of Canacol Energy was 0.68. The lowest was -3.74. And the median was -2.80.


Canacol Energy Beneish M-Score Historical Data

The historical data trend for Canacol 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.

Canacol Energy Beneish M-Score Chart

Canacol Energy Annual Data
Trend Jun14 Jun15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.75 -3.71 -2.33 -0.01 -1.89

Canacol Energy Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial 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 0.68 -1.89 -2.51 -3.07 -2.82

Competitive Comparison of Canacol Energy's Beneish M-Score

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


Canacol Energy's Beneish M-Score Distribution in the Oil & Gas Industry

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

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



Canacol 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 Canacol 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 * 1.0626+0.528 * 0.967+0.404 * 0.803+0.892 * 1.1402+0.115 * 1.0309
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.808+4.679 * -0.098726-0.327 * 1.0096
=-2.82

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was C$133.9 Mil.
Revenue was 128.065 + 129.61 + 112.893 + 111.093 = C$481.7 Mil.
Gross Profit was 100.629 + 102.977 + 87.139 + 84.145 = C$374.9 Mil.
Total Current Assets was C$232.6 Mil.
Total Assets was C$1,668.0 Mil.
Property, Plant and Equipment(Net PPE) was C$1,131.3 Mil.
Depreciation, Depletion and Amortization(DDA) was C$106.8 Mil.
Selling, General, & Admin. Expense(SGA) was C$47.2 Mil.
Total Current Liabilities was C$154.6 Mil.
Long-Term Debt & Capital Lease Obligation was C$977.9 Mil.
Net Income was 14.015 + -29.189 + 4.946 + 40.11 = C$29.9 Mil.
Non Operating Income was 14.608 + -4.868 + -7.045 + -9.305 = C$-6.6 Mil.
Cash Flow from Operations was 29.384 + 67.431 + 74.068 + 30.281 = C$201.2 Mil.
Total Receivables was C$110.5 Mil.
Revenue was 107.014 + 103.203 + 104.307 + 107.925 = C$422.4 Mil.
Gross Profit was 83.174 + 77.629 + 78.349 + 78.803 = C$318.0 Mil.
Total Current Assets was C$186.4 Mil.
Total Assets was C$1,532.7 Mil.
Property, Plant and Equipment(Net PPE) was C$998.2 Mil.
Depreciation, Depletion and Amortization(DDA) was C$97.4 Mil.
Selling, General, & Admin. Expense(SGA) was C$51.2 Mil.
Total Current Liabilities was C$196.2 Mil.
Long-Term Debt & Capital Lease Obligation was C$834.4 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)
=(133.895 / 481.661) / (110.521 / 422.449)
=0.277986 / 0.26162
=1.0626

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)
=(317.955 / 422.449) / (374.89 / 481.661)
=0.752647 / 0.778327
=0.967

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 - (232.571 + 1131.254) / 1667.966) / (1 - (186.385 + 998.24) / 1532.669)
=0.182342 / 0.227084
=0.803

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
=481.661 / 422.449
=1.1402

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))
=(97.415 / (97.415 + 998.24)) / (106.77 / (106.77 + 1131.254))
=0.08891 / 0.086242
=1.0309

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)
=(47.177 / 481.661) / (51.209 / 422.449)
=0.097946 / 0.121219
=0.808

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)
=((977.926 + 154.554) / 1667.966) / ((834.443 + 196.236) / 1532.669)
=0.678959 / 0.672473
=1.0096

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
=(29.882 - -6.61 - 201.164) / 1667.966
=-0.098726

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.

Canacol Energy has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.


Canacol Energy Beneish M-Score Related Terms

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Canacol Energy Business Description

Traded in Other Exchanges
Address
215 - 9 Avenue SW, Suite 2000, Calgary, AB, CAN, T2P 1K3
Canacol Energy Ltd is a natural gas and oil exploration and production company. The company operates in the Lower and Middle Magdalena Basins of Colombia.
Executives
David A Winter Director
Tracy Lynn Whitmore Senior Officer
Lp Fourth Sail Capital 10% Security Holder
Michael John Hibberd Director
Francisco Diaz Salazar Director
Jason Michael Bednar Senior Officer
Kevin James Flick Senior Officer

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