CBB has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
During the past 13 years, the highest Beneish M-Score of Cincinnati Bell Inc was 3.33. The lowest was -11.56. And the median was -2.85.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Cincinnati Bell Inc 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 * 1.0129||+||0.528 * 1.0063||+||0.404 * 0.5963||+||0.892 * 1.0019||+||0.115 * 1.428|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0241||+||4.679 * -0.1718||-||0.327 * 0.8879|
|This Year (Jun16) TTM:||Last Year (Jun15) TTM:|
|Accounts Receivable was $158 Mil.|
Revenue was 299.2 + 288.9 + 289.3 + 299.8 = $1,177 Mil.
Gross Profit was 128.4 + 126.2 + 122.7 + 124.2 = $502 Mil.
Total Current Assets was $209 Mil.
Total Assets was $1,423 Mil.
Property, Plant and Equipment(Net PPE) was $1,022 Mil.
Depreciation, Depletion and Amortization(DDA) was $163 Mil.
Selling, General & Admin. Expense(SGA) was $221 Mil.
Total Current Liabilities was $257 Mil.
Long-Term Debt was $1,126 Mil.
Net Income was 77.6 + 7 + 32.6 + 80.3 = $198 Mil.
Non Operating Income was 114.5 + 2.4 + 40.1 + 108.7 = $266 Mil.
Cash Flow from Operations was 32.1 + 66 + 16.2 + 62 = $176 Mil.
|Accounts Receivable was $155 Mil.
Revenue was 285.8 + 292.9 + 294.9 + 301.4 = $1,175 Mil.
Gross Profit was 123.6 + 126.7 + 121.5 + 131.9 = $504 Mil.
Total Current Assets was $273 Mil.
Total Assets was $1,510 Mil.
Property, Plant and Equipment(Net PPE) was $895 Mil.
Depreciation, Depletion and Amortization(DDA) was $219 Mil.
Selling, General & Admin. Expense(SGA) was $215 Mil.
Total Current Liabilities was $273 Mil.
Long-Term Debt was $1,379 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(157.5 / 1177.2)||/||(155.2 / 1175)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(503.7 / 1175)||/||(501.5 / 1177.2)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (208.9 + 1021.7) / 1423.2)||/||(1 - (272.5 + 894.5) / 1509.6)|
4. SGI = Sales Growth Index
Ratio of sales 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.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation 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))|
|=||(219 / (219 + 894.5))||/||(163.2 / (163.2 + 1021.7))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses 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)|
|=||(220.7 / 1177.2)||/||(215.1 / 1175)|
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$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((1125.7 + 256.9) / 1423.2)||/||((1379 + 272.7) / 1509.6)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(197.5 - 265.7||-||176.3)||/||1423.2|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
Cincinnati Bell Inc has a M-score of -3.35 suggests that the company will not be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
Cincinnati Bell Inc Annual Data
Cincinnati Bell Inc Quarterly Data