Switch to:
Cambrex Corp (NYSE:CBM)
Beneish M-Score
-3.00 (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 -3.00 suggests that the company is not a manipulator.

CBM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.72   Max: 0.84
Current: -3

-4.72
0.84

During the past 13 years, the highest Beneish M-Score of Cambrex Corp was 0.84. The lowest was -4.72. 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 * 0.7289+0.528 * 0.8397+0.404 * 0.8263+0.892 * 1.1669+0.115 * 1.1652
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8911+4.679 * -0.0715-0.327 * 0.8952
=-3.00

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 11.747 + 19.663 + 7.993 + 27.885 = $67.3 Mil.
Non Operating Income was 0.296 + -0.232 + 0.062 + -0.016 = $0.1 Mil.
Cash Flow from Operations was 39.841 + 4.832 + 35.372 + 23.597 = $103.6 Mil.
Accounts Receivable was $45.6 Mil.
Revenue was 81.3 + 97.893 + 66.105 + 103.036 = $348.3 Mil.
Gross Profit was 28.406 + 33.415 + 16.578 + 33.938 = $112.3 Mil.
Total Current Assets was $194.4 Mil.
Total Assets was $444.3 Mil.
Property, Plant and Equipment(Net PPE) was $162.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.8 Mil.
Selling, General & Admin. Expense(SGA) was $53.4 Mil.
Total Current Liabilities was $89.3 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)
=(38.82 / 406.454) / (45.642 / 348.334)
=0.09550896 / 0.13102941
=0.7289

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)
=(45.945 / 348.334) / (35.68 / 406.454)
=0.32249795 / 0.38406068
=0.8397

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 - (246.002 + 180.598) / 509.683) / (1 - (194.402 + 162.269) / 444.332)
=0.16300916 / 0.19728716
=0.8263

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
=406.454 / 348.334
=1.1669

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))
=(23.757 / (23.757 + 162.269)) / (22.231 / (22.231 + 180.598))
=0.12770795 / 0.10960464
=1.1652

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)
=(55.573 / 406.454) / (53.448 / 348.334)
=0.13672642 / 0.15343894
=0.8911

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)
=((30 + 123.305) / 509.683) / ((60 + 89.301) / 444.332)
=0.300785 / 0.33601226
=0.8952

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
=(67.288 - 0.11 - 103.642) / 509.683
=-0.0715

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 -3.00 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.81290.53071.08670.82590.92761.25920.83071.09131.43730.919
GMI 1.05531.08660.98731.22110.98751.01721.01650.88551.01190.9787
AQI 0.98921.33680.28961.03470.98321.61391.03311.20040.78191.0803
SGI 0.5591.04841.07420.9870.94110.96781.12631.08151.15071.1774
DEPI 0.78590.89031.69440.92891.02180.89110.89171.13251.08530.909
SGAI 1.02670.99071.27770.53250.90270.98451.02371.06650.91360.9372
LVGI 1.12820.96851.20671.04560.90480.95970.95460.82851.01480.8459
TATA -0.2493-0.43360.56050.0108-0.0701-0.0413-0.07540.0535-0.0291-0.0252
M-score -3.34-4.72-0.04-2.41-2.89-2.20-2.86-1.99-2.14-2.44

Cambrex Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.00451.461.43730.92211.26940.69180.9190.79760.58540.7289
GMI 1.02991.02961.01191.07810.99130.97950.97870.86720.83850.8397
AQI 1.33751.25250.78190.86520.82810.91311.08030.88540.86990.8263
SGI 0.97371.041.15071.10041.2911.22191.17741.24771.1461.1669
DEPI 1.20331.15961.08531.020.98220.92150.9090.93721.04211.1652
SGAI 1.07950.94690.91360.94210.89460.9880.93720.910.90770.8911
LVGI 0.91220.96521.01480.93350.92480.83420.84591.01130.91110.8952
TATA 0.05990.1107-0.026-0.0719-0.0335-0.0881-0.0252-0.0328-0.055-0.0715
M-score -2.03-1.35-2.13-2.78-2.16-2.98-2.44-2.71-3.08-3.00
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)

GuruFocus Premium Plus Membership

FEEDBACK