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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: -0.02
Current: -2.48

-4.74
-0.02

During the past 13 years, the highest Beneish M-Score of Cambrex Corp was -0.02. The lowest was -4.74. And the median was -2.66.


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 * 1.0746+0.528 * 0.9811+0.404 * 0.9969+0.892 * 1.1323+0.115 * 1.0369
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9222+4.679 * -0.0679-0.327 * 0.6076
=-2.48

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $110.6 Mil.
Revenue was 177.866 + 99.399 + 118.638 + 94.741 = $490.6 Mil.
Gross Profit was 79.167 + 37.602 + 48.557 + 38.899 = $204.2 Mil.
Total Current Assets was $322.7 Mil.
Total Assets was $611.9 Mil.
Property, Plant and Equipment(Net PPE) was $217.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.7 Mil.
Selling, General & Admin. Expense(SGA) was $60.4 Mil.
Total Current Liabilities was $95.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 37.384 + 9.218 + 20.494 + 14.582 = $81.7 Mil.
Non Operating Income was 0.046 + 0.071 + -0.272 + 0.076 = $-0.1 Mil.
Cash Flow from Operations was 11.443 + 47.214 + -25.15 + 89.771 = $123.3 Mil.
Accounts Receivable was $90.9 Mil.
Revenue was 156.187 + 92.979 + 106.635 + 77.525 = $433.3 Mil.
Gross Profit was 66.261 + 35.68 + 45.945 + 29.079 = $177.0 Mil.
Total Current Assets was $259.3 Mil.
Total Assets was $505.5 Mil.
Property, Plant and Equipment(Net PPE) was $186.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.1 Mil.
Selling, General & Admin. Expense(SGA) was $57.9 Mil.
Total Current Liabilities was $129.8 Mil.
Long-Term Debt was $0.0 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)
=(110.622 / 490.644) / (90.92 / 433.326)
=0.22546286 / 0.20981894
=1.0746

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)
=(176.965 / 433.326) / (204.225 / 490.644)
=0.40838768 / 0.41623866
=0.9811

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 - (322.655 + 217.092) / 611.865) / (1 - (259.279 + 186.487) / 505.539)
=0.11786587 / 0.11823618
=0.9969

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
=490.644 / 433.326
=1.1323

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))
=(22.061 / (22.061 + 186.487)) / (24.665 / (24.665 + 217.092))
=0.1057838 / 0.10202393
=1.0369

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)
=(60.422 / 490.644) / (57.867 / 433.326)
=0.12314835 / 0.13354149
=0.9222

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 + 95.462) / 611.865) / ((0 + 129.802) / 505.539)
=0.15601808 / 0.25675962
=0.6076

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
=(81.678 - -0.079 - 123.278) / 611.865
=-0.0679

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 local exchange's currency.

Cambrex Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.08670.82590.92761.25920.83071.09131.43730.9191.01911.0746
GMI 0.98731.22110.98751.01721.01650.88551.01190.97870.80920.9811
AQI 0.28961.03470.98321.61391.03311.20040.78191.11880.57960.9969
SGI 1.07420.9870.94110.96781.12631.08151.15071.17741.15671.1323
DEPI 1.69440.92891.02180.89110.89171.13251.08530.9091.20191.0369
SGAI 1.27770.53250.90270.98451.02371.06650.91360.93720.95310.9222
LVGI 1.20671.04560.90480.95970.95460.82851.01480.84570.78780.6076
TATA 0.56440.0108-0.0437-0.0363-0.07540.0662-0.0089-0.0063-0.0528-0.0678
M-score -0.02-2.41-2.77-2.18-2.86-1.93-2.05-2.34-2.74-2.48

Cambrex Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.69180.9190.79760.58540.72891.01910.97751.23470.84831.0746
GMI 0.97950.97870.86720.83850.83970.80920.85170.92070.94140.9811
AQI 0.91311.11880.88540.86990.82630.57960.56460.57910.62810.9969
SGI 1.22191.17741.24771.1461.16691.15671.16711.17171.15381.1323
DEPI 0.92150.9090.93721.04211.16521.20191.28981.16341.08711.0369
SGAI 0.9880.93720.910.90770.89110.95310.91260.90970.91470.9222
LVGI 0.83420.84571.01130.91110.89520.78780.55610.45640.47270.6076
TATA -0.054-0.0063-0.0149-0.056-0.0738-0.049-0.1354-0.0807-0.0965-0.0679
M-score -2.82-2.34-2.63-3.08-3.01-2.72-3.05-2.49-2.92-2.48
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