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Cambrex Corp (NYSE:CBM)
Beneish M-Score
-2.89 (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 Corp has a M-score of -2.89 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: -2.89

-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 -2.70.


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 * 0.8483+0.528 * 0.9414+0.404 * 0.6281+0.892 * 1.1538+0.115 * 1.0871
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9147+4.679 * -0.0904-0.327 * 0.4727
=-2.89

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $38.0 Mil.
Revenue was 99.399 + 118.638 + 94.741 + 156.187 = $469.0 Mil.
Gross Profit was 37.602 + 48.557 + 38.899 + 66.261 = $191.3 Mil.
Total Current Assets was $289.0 Mil.
Total Assets was $555.1 Mil.
Property, Plant and Equipment(Net PPE) was $209.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.5 Mil.
Selling, General & Admin. Expense(SGA) was $58.7 Mil.
Total Current Liabilities was $78.9 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 9.218 + 20.494 + 14.582 + 17.814 = $62.1 Mil.
Non Operating Income was 0.071 + -0.272 + 0.076 + -2.993 = $-3.1 Mil.
Cash Flow from Operations was 47.214 + -25.15 + 89.771 + 3.561 = $115.4 Mil.
Accounts Receivable was $38.8 Mil.
Revenue was 92.979 + 106.635 + 77.525 + 129.315 = $406.5 Mil.
Gross Profit was 35.68 + 45.945 + 29.079 + 45.399 = $156.1 Mil.
Total Current Assets was $246.0 Mil.
Total Assets was $509.7 Mil.
Property, Plant and Equipment(Net PPE) was $180.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.2 Mil.
Selling, General & Admin. Expense(SGA) was $55.6 Mil.
Total Current Liabilities was $123.3 Mil.
Long-Term Debt was $30.0 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)
=(37.995 / 468.965) / (38.82 / 406.454)
=0.08101884 / 0.09550896
=0.8483

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)
=(156.103 / 406.454) / (191.319 / 468.965)
=0.38406068 / 0.40796008
=0.9414

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 - (289.02 + 209.213) / 555.06) / (1 - (246.002 + 180.598) / 509.683)
=0.10237992 / 0.16300916
=0.6281

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
=468.965 / 406.454
=1.1538

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))
=(22.231 / (22.231 + 180.598)) / (23.458 / (23.458 + 209.213))
=0.10960464 / 0.10082047
=1.0871

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)
=(58.651 / 468.965) / (55.573 / 406.454)
=0.12506477 / 0.13672642
=0.9147

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 + 78.921) / 555.06) / ((30 + 123.305) / 509.683)
=0.14218463 / 0.300785
=0.4727

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
=(62.108 - -3.118 - 115.396) / 555.06
=-0.0904

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 -2.89 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.26940.69180.9190.79760.58540.72891.01910.97751.23470.8483
GMI 0.99130.97950.97870.86720.83850.83970.80920.85170.92070.9414
AQI 0.82810.91311.08030.88540.86990.82630.60030.56460.57910.6281
SGI 1.2911.22191.17741.24771.1461.16691.15671.16711.17171.1538
DEPI 0.98220.92150.9090.93721.04211.16521.20191.28981.16341.0871
SGAI 0.89460.9880.93720.910.90770.89110.95310.91260.90970.9147
LVGI 0.92480.83420.84591.01130.91110.89520.78760.55610.45640.4727
TATA -0.0046-0.06620.0004-0.0082-0.0475-0.0653-0.0423-0.1291-0.0743-0.0904
M-score -2.03-2.87-2.32-2.60-3.04-2.97-2.68-3.02-2.46-2.89
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