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Cambrex Corporation (NYSE:CBM)
Beneish M-Score
-1.89 (As of Today)

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.

Cambrex Corporation has a M-score of -1.89 signals that the company is a manipulator.

CBM' s 10-Year Beneish M-Score Range
Min: -4.72   Max: -0.04
Current: -1.89

-4.72
-0.04

During the past 13 years, the highest Beneish M-Score of Cambrex Corporation was -0.04. The lowest was -4.72. And the median was -2.67.


Definition

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 Cambrex Corporation 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 * 1.6225+0.528 * 1.0119+0.404 * 0.7819+0.892 * 1.1507+0.115 * 1.0853
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9136+4.679 * -0.0116-0.327 * 1.0148
=-1.89

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $84.2 Mil.
Revenue was 103.036 + 77.452 + 62.803 + 74.885 = $318.2 Mil.
Gross Profit was 33.938 + 24.966 + 19.251 + 24.749 = $102.9 Mil.
Total Current Assets was $202.6 Mil.
Total Assets was $458.0 Mil.
Property, Plant and Equipment(Net PPE) was $172.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.5 Mil.
Selling, General & Admin. Expense(SGA) was $47.6 Mil.
Total Current Liabilities was $97.3 Mil.
Long-Term Debt was $79.3 Mil.
Net Income was 8.899 + 3.574 + 2.274 + 11.168 = $25.9 Mil.
Non Operating Income was -5.392 + -0.513 + 0.706 + -0.449 = $-5.6 Mil.
Cash Flow from Operations was 38.589 + -4.273 + -11.09 + 13.648 = $36.9 Mil.
Accounts Receivable was $45.1 Mil.
Revenue was 69.93 + 59.21 + 77.133 + 70.228 = $276.5 Mil.
Gross Profit was 21.083 + 18.531 + 28.445 + 22.428 = $90.5 Mil.
Total Current Assets was $144.0 Mil.
Total Assets was $385.7 Mil.
Property, Plant and Equipment(Net PPE) was $151.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.8 Mil.
Selling, General & Admin. Expense(SGA) was $45.2 Mil.
Total Current Liabilities was $82.5 Mil.
Long-Term Debt was $64.0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(84.219 / 318.176) / (45.109 / 276.501)
=0.26469313 / 0.16314227
=1.6225

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)
=(24.966 / 276.501) / (33.938 / 318.176)
=0.32725741 / 0.32341849
=1.0119

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (202.56 + 171.966) / 458.037) / (1 - (143.97 + 151.815) / 385.731)
=0.1823237 / 0.23318323
=0.7819

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.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=318.176 / 276.501
=1.1507

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))
=(21.775 / (21.775 + 151.815)) / (22.473 / (22.473 + 171.966))
=0.12543925 / 0.11557866
=1.0853

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)
=(47.568 / 318.176) / (45.248 / 276.501)
=0.14950216 / 0.16364498
=0.9136

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)
=((79.25 + 97.271) / 458.037) / ((64 + 82.483) / 385.731)
=0.3853859 / 0.37975428
=1.0148

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
=(25.915 - -5.648 - 36.874) / 458.037
=-0.0116

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.

Cambrex Corporation has a M-score of -1.89 signals that the company is likely to be a manipulator.


Related Terms

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Cambrex Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.20011.81290.53071.08670.82590.92761.25920.83071.5703
GMI 0.96681.05531.08660.98731.22110.98751.01721.01650.896
AQI 0.83240.98921.33680.28961.03470.98321.61391.03310.7288
SGI 0.97680.5591.04841.07420.9870.94110.96781.12631.2446
DEPI 0.9250.78590.89031.69440.92891.02180.89110.89170
SGAI 1.05231.02670.99071.27770.53250.90270.98451.02370.9743
LVGI 1.02851.12820.96851.20671.04560.90480.95970.95461.034
TATA -0.0338-0.2493-0.43360.56050.0108-0.0701-0.0413-0.0754-0.0187
M-score -2.59-3.34-4.72-0.04-2.41-2.89-2.20-2.86-2.11

Cambrex Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.8920.83070.88971.00261.03231.14240.98821.00451.461.6225
GMI 0.94051.01651.01230.90980.90740.88550.90281.02991.02961.0119
AQI 1.35621.03310.99390.98460.94051.20041.32581.33751.25250.7819
SGI 1.15041.12631.14611.13411.08331.08151.05980.97371.041.1507
DEPI 0.88630.89170.89870.91211.02451.13251.14651.20331.15961.0853
SGAI 0.96361.02141.01741.06781.11161.06651.09171.07950.94690.9136
LVGI 0.93670.95460.90860.92690.91960.82850.85570.91220.96521.0148
TATA -0.0586-0.0754-0.0678-0.0569-0.0910.05150.03730.0670.1286-0.0116
M-score -2.59-2.86-2.75-2.68-2.86-1.95-2.13-2.00-1.26-1.89
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