Switch to:
Cambrex Corp (NYSE:CBM)
Beneish M-Score
-2.48 (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 Corp has a M-score of -2.48 suggests that the company is not a manipulator.

CBM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.74   Max: 0.82
Current: -2.48

-4.74
0.82

During the past 13 years, the highest Beneish M-Score of Cambrex Corp was 0.82. The lowest was -4.74. And the median was -2.71.


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 Corp 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 * 1.2347+0.528 * 0.9207+0.404 * 0.5791+0.892 * 1.1717+0.115 * 1.1634
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9097+4.679 * -0.0779-0.327 * 0.4564
=-2.48

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $67.7 Mil.
Revenue was 118.638 + 94.741 + 156.187 + 92.979 = $462.5 Mil.
Gross Profit was 48.557 + 38.899 + 66.261 + 35.68 = $189.4 Mil.
Total Current Assets was $279.9 Mil.
Total Assets was $536.9 Mil.
Property, Plant and Equipment(Net PPE) was $204.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.7 Mil.
Selling, General & Admin. Expense(SGA) was $57.7 Mil.
Total Current Liabilities was $80.7 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 20.494 + 14.582 + 17.814 + 11.747 = $64.6 Mil.
Non Operating Income was -0.272 + 0.076 + -0.059 + -1.33 = $-1.6 Mil.
Cash Flow from Operations was -25.15 + 89.771 + 3.561 + 39.841 = $108.0 Mil.
Accounts Receivable was $46.8 Mil.
Revenue was 106.635 + 77.525 + 129.315 + 81.3 = $394.8 Mil.
Gross Profit was 45.945 + 29.079 + 45.399 + 28.406 = $148.8 Mil.
Total Current Assets was $253.4 Mil.
Total Assets was $512.9 Mil.
Property, Plant and Equipment(Net PPE) was $172.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.7 Mil.
Selling, General & Admin. Expense(SGA) was $54.1 Mil.
Total Current Liabilities was $108.9 Mil.
Long-Term Debt was $60.0 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)
=(67.692 / 462.545) / (46.793 / 394.775)
=0.14634684 / 0.11853081
=1.2347

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)
=(148.829 / 394.775) / (189.397 / 462.545)
=0.37699702 / 0.40946719
=0.9207

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 - (279.907 + 204.178) / 536.875) / (1 - (253.359 + 172.417) / 512.856)
=0.09832829 / 0.16979425
=0.5791

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
=462.545 / 394.775
=1.1717

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))
=(22.662 / (22.662 + 172.417)) / (22.65 / (22.65 + 204.178))
=0.11616832 / 0.0998554
=1.1634

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)
=(57.69 / 462.545) / (54.125 / 394.775)
=0.124723 / 0.13710341
=0.9097

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)
=((0 + 80.714) / 536.875) / ((60 + 108.945) / 512.856)
=0.1503404 / 0.32941995
=0.4564

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
=(64.637 - -1.585 - 108.023) / 536.875
=-0.0779

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 Corp has a M-score of -2.48 suggests that the company will not 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 Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.53071.08670.82590.92761.25920.83071.09131.43730.9191.0191
GMI 1.08660.98731.22110.98751.01721.01650.88551.01190.97870.8092
AQI 1.33680.28961.03470.98321.61391.03311.20040.78191.11880.5796
SGI 1.04841.07420.9870.94110.96781.12631.08151.15071.17741.1567
DEPI 0.89031.69440.92891.02180.89110.89171.13251.08530.9091.2019
SGAI 0.99071.27770.53250.90270.98451.02371.06650.91360.93720.9531
LVGI 0.96851.20671.04560.90480.95970.95460.82851.01480.84570.7878
TATA -0.43850.56440.0108-0.0437-0.0363-0.07540.0662-0.00890.0027-0.046
M-score -4.74-0.02-2.41-2.77-2.18-2.86-1.93-2.05-2.30-2.71

Cambrex Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.92211.26940.69180.9190.79760.58540.72891.01910.97751.2347
GMI 1.07810.99130.97950.97870.86720.83850.83970.80920.85170.9207
AQI 0.86520.82810.91311.11880.88540.86990.82630.57960.56460.5791
SGI 1.10041.2911.22191.17741.24771.1461.16691.15671.16711.1717
DEPI 1.020.98220.92150.9090.93721.04211.16521.20191.28981.1634
SGAI 0.94210.89460.9880.93720.910.90770.89110.95310.91260.9097
LVGI 0.93350.92480.83420.84571.01130.91110.89520.78780.55610.4564
TATA -0.05690.0008-0.0540.0027-0.0059-0.0475-0.0632-0.046-0.1326-0.0779
M-score -2.71-2.00-2.82-2.30-2.58-3.04-2.96-2.71-3.03-2.48
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK