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Cambrex Corp (NYSE:CBM)
Beneish M-Score
-2.84 (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 -2.84 suggests that the company is not a manipulator.

CBM' s 10-Year Beneish M-Score Range
Min: -4.72   Max: 0.84
Current: -2.84

-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 -2.70.


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 * 0.6918+0.528 * 0.9795+0.404 * 0.9131+0.892 * 1.2219+0.115 * 0.9215
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.988+4.679 * -0.0581-0.327 * 0.8342
=-2.84

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was 8.769 + 19.667 + 0.982 + 8.899 = $38.3 Mil.
Non Operating Income was 0.037 + -4.269 + 0.328 + -4.048 = $-8.0 Mil.
Cash Flow from Operations was 28.841 + -12.052 + 24.582 + 30.735 = $72.1 Mil.
Accounts Receivable was $54.0 Mil.
Revenue was 77.452 + 62.803 + 74.885 + 69.93 = $285.1 Mil.
Gross Profit was 24.966 + 19.251 + 24.749 + 21.083 = $90.0 Mil.
Total Current Assets was $198.7 Mil.
Total Assets was $466.4 Mil.
Property, Plant and Equipment(Net PPE) was $167.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.3 Mil.
Selling, General & Admin. Expense(SGA) was $44.3 Mil.
Total Current Liabilities was $86.8 Mil.
Long-Term Debt was $101.1 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)
=(45.642 / 348.334) / (53.996 / 285.07)
=0.13102941 / 0.18941313
=0.6918

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)
=(33.415 / 285.07) / (28.406 / 348.334)
=0.31588382 / 0.32249795
=0.9795

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 - (194.402 + 162.269) / 444.332) / (1 - (198.674 + 166.99) / 466.445)
=0.19728716 / 0.21606192
=0.9131

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
=348.334 / 285.07
=1.2219

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))
=(22.272 / (22.272 + 166.99)) / (23.757 / (23.757 + 162.269))
=0.11767814 / 0.12770795
=0.9215

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)
=(53.448 / 348.334) / (44.273 / 285.07)
=0.15343894 / 0.15530571
=0.988

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)
=((60 + 89.301) / 444.332) / ((101.05 + 86.842) / 466.445)
=0.33601226 / 0.40281705
=0.8342

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
=(38.317 - -7.952 - 72.106) / 444.332
=-0.0581

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 -2.84 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.20011.81290.53071.08670.82590.92761.25920.83071.09131.4373
GMI 0.96681.05531.08660.98731.22110.98751.01721.01650.88551.0119
AQI 0.83240.98921.33680.28961.03470.98321.61391.03311.20040.7819
SGI 0.97680.5591.04841.07420.9870.94110.96781.12631.08151.1507
DEPI 0.9250.78590.89031.69440.92891.02180.89110.89171.13251.0853
SGAI 1.05231.02670.99071.27770.53250.90270.98451.02371.06650.9136
LVGI 1.02851.12820.96851.20671.04560.90480.95970.95460.82851.0148
TATA -0.0338-0.2493-0.43360.56050.0108-0.0701-0.0413-0.07540.0535-0.0187
M-score -2.59-3.34-4.72-0.04-2.41-2.89-2.20-2.86-1.99-2.09

Cambrex Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.00261.03231.09130.98821.00451.461.43730.92211.26940.6918
GMI 0.90980.90740.88550.90281.02991.02961.01191.07810.99130.9795
AQI 0.98460.94051.20041.32581.33751.25250.78190.86520.82810.9131
SGI 1.13411.08331.08151.05980.97371.041.15071.10041.2911.2219
DEPI 0.91211.02451.13251.14651.20331.15961.08531.020.98220.9215
SGAI 1.06781.11161.06651.09171.07950.94690.91360.94210.89460.988
LVGI 0.92690.91960.82850.85570.91220.96521.01480.93350.92480.8342
TATA -0.0569-0.0910.05150.03290.05990.1107-0.0156-0.0612-0.0055-0.0581
M-score -2.68-2.86-2.00-2.16-2.03-1.35-2.08-2.73-2.03-2.84
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