Cia Energetica DE Minas Gerais - Cemig (Cia Energetica DE Minas Gerais - Cemig) Beneish M-Score : -3.08 (As of Apr. 25, 2024)

View and export this data going back to 1995. Start your Free Trial

What is Cia Energetica DE Minas Gerais - Cemig 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 -3.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Cia Energetica DE Minas Gerais - Cemig's Beneish M-Score or its related term are showing as below:

CIG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28 Med: -2.4 Max: -1.81
Current: -3.08

During the past 13 years, the highest Beneish M-Score of Cia Energetica DE Minas Gerais - Cemig was -1.81. The lowest was -3.28. And the median was -2.40.

Cia Energetica DE Minas Gerais - Cemig Beneish M-Score Historical Data

The historical data trend for Cia Energetica DE Minas Gerais - Cemig'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.

Cia Energetica DE Minas Gerais - Cemig Beneish M-Score Chart

Cia Energetica DE Minas Gerais - Cemig Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

Get a 7-Day Free Trial

-2.43

-2.16

-2.73

-2.31

-3.17

Cia Energetica DE Minas Gerais - Cemig Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-3.08	-3.17	-	-3.28	-3.08

Competitive Comparison of Cia Energetica DE Minas Gerais - Cemig's Beneish M-Score

For the Utilities - Diversified subindustry, Cia Energetica DE Minas Gerais - Cemig'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.

Cia Energetica DE Minas Gerais - Cemig's Beneish M-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Cia Energetica DE Minas Gerais - Cemig's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Cia Energetica DE Minas Gerais - Cemig's Beneish M-Score falls into.

Cia Energetica DE Minas Gerais - Cemig 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 Cia Energetica DE Minas Gerais - Cemig 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 * 0.9493

0.528 * 0.6681

0.404 * 1.0158

0.892 * 1.0697

0.115 * 1.1284

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3519

4.679 * -0.076393

0.327 * 0.9718

-3.03

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was $1,494 Mil.
Revenue was 1908.727 + 1817.071 + 1660.139 + 1749.888 = $7,136 Mil.
Gross Profit was 539.174 + 416.048 + 343.47 + 459.876 = $1,759 Mil.
Total Current Assets was $2,818 Mil.
Total Assets was $11,372 Mil.
Property, Plant and Equipment(Net PPE) was $675 Mil.
Depreciation, Depletion and Amortization(DDA) was $367 Mil.
Selling, General, & Admin. Expense(SGA) was $240 Mil.
Total Current Liabilities was $2,170 Mil.
Long-Term Debt & Capital Lease Obligation was $2,283 Mil.
Net Income was 250.533 + 256.44 + 268.402 + 267.842 = $1,043 Mil.
Non Operating Income was 39.83 + 48.376 + 49.725 + 60.138 = $198 Mil.
Cash Flow from Operations was 965.234 + 366.481 + 183.735 + 198.46 = $1,714 Mil.

Total Receivables was $1,472 Mil.
Revenue was 1758.965 + 1627.153 + 1576.843 + 1707.654 = $6,671 Mil.
Gross Profit was 409.603 + 70.474 + 297.203 + 321.063 = $1,098 Mil.
Total Current Assets was $2,805 Mil.
Total Assets was $10,396 Mil.
Property, Plant and Equipment(Net PPE) was $501 Mil.
Depreciation, Depletion and Amortization(DDA) was $331 Mil.
Selling, General, & Admin. Expense(SGA) was $166 Mil.
Total Current Liabilities was $2,207 Mil.
Long-Term Debt & Capital Lease Obligation was $1,982 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)
	=	(1494.32 / 7135.825)	/	(1471.508 / 6670.615)
	=	0.209411	/	0.220596
	=	0.9493

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)
	=	(1098.343 / 6670.615)	/	(1758.568 / 7135.825)
	=	0.164654	/	0.246442
	=	0.6681

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 - (2818.353 + 675.076) / 11372.223)	/	(1 - (2804.562 + 500.801) / 10396.293)
	=	0.69281	/	0.682063
	=	1.0158

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
	=	7135.825	/	6670.615
	=	1.0697

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))
	=	(330.601 / (330.601 + 500.801))	/	(367.321 / (367.321 + 675.076))
	=	0.397643	/	0.352381
	=	1.1284

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)
	=	(239.617 / 7135.825)	/	(165.682 / 6670.615)
	=	0.033579	/	0.024838
	=	1.3519

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)
	=	((2283.394 + 2169.802) / 11372.223)	/	((1982.417 + 2206.881) / 10396.293)
	=	0.391585	/	0.402961
	=	0.9718

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
	=	(1043.217 - 198.069	-	1713.91)	/	11372.223
	=	-0.076393

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.

Cia Energetica DE Minas Gerais - Cemig has a M-score of -3.03 suggests that the company is unlikely to be a manipulator.

Cia Energetica DE Minas Gerais - Cemig Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Cia Energetica DE Minas Gerais - Cemig's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Cia Energetica DE Minas Gerais - Cemig (Cia Energetica DE Minas Gerais - Cemig) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Cia Energetica DE Minas Gerais - Cemig (NYSE:CIG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CIG.C:USA CIGN:Mexico XCMIG:Spain CIDS:Germany CIDA:Germany CID:Germany CIDA:Germany CID:Germany CMIG4:Brazil CMIG3:Brazil

Address

Avenida Barbacena, 1200, Belo Horizonte, MG, BRA, 30190-131

Website

https://www.cemig.com.br

Cia Energetica DE Minas Gerais - Cemig Formerly Energy Company of Minas Gerais is a Brazilian power company that generates, transmits, and distributes electricity. As one of the largest power companies in Brazil, the firm operates across most Brazilian states and Chile. The company has various subsidiaries and operates chiefly through its generation, transmission, distribution, and gas segments. The majority of the company's revenue is derived from electricity sales to consumers. The company generates power primarily through hydroelectric resources and secondarily through thermal and wind resources.