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Cambrex Corp (NYSE:CBM)
Beneish M-Score
-1.81 (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 -1.81 signals that the company is a manipulator.

CBM' s 10-Year Beneish M-Score Range
Min: -3.45   Max: -0.45
Current: -1.81

-3.45
-0.45

During the past 13 years, the highest Beneish M-Score of Cambrex Corp was -0.45. The lowest was -3.45. And the median was -2.68.


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 * 1.4797+0.528 * 0.9913+0.404 * 0.8281+0.892 * 1.291+0.115 * 0.9822
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8946+4.679 * -0.0005-0.327 * 0.9248
=-1.81

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $81.3 Mil.
Revenue was 97.893 + 66.105 + 103.036 + 77.452 = $344.5 Mil.
Gross Profit was 33.415 + 16.578 + 33.938 + 24.966 = $108.9 Mil.
Total Current Assets was $213.0 Mil.
Total Assets was $476.1 Mil.
Property, Plant and Equipment(Net PPE) was $170.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.4 Mil.
Selling, General & Admin. Expense(SGA) was $52.0 Mil.
Total Current Liabilities was $98.1 Mil.
Long-Term Debt was $74.0 Mil.
Net Income was 19.667 + 0.982 + 8.899 + 3.574 = $33.1 Mil.
Non Operating Income was -4.269 + 0.328 + -5.392 + -0.513 = $-9.8 Mil.
Cash Flow from Operations was -12.052 + 24.582 + 38.589 + -7.894 = $43.2 Mil.
Accounts Receivable was $42.6 Mil.
Revenue was 62.803 + 74.885 + 69.93 + 59.21 = $266.8 Mil.
Gross Profit was 19.251 + 24.749 + 21.083 + 18.531 = $83.6 Mil.
Total Current Assets was $171.0 Mil.
Total Assets was $435.5 Mil.
Property, Plant and Equipment(Net PPE) was $161.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.9 Mil.
Selling, General & Admin. Expense(SGA) was $45.1 Mil.
Total Current Liabilities was $83.3 Mil.
Long-Term Debt was $87.0 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)
=(81.302 / 344.486) / (42.56 / 266.828)
=0.23600959 / 0.1595035
=1.4797

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)
=(16.578 / 266.828) / (33.415 / 344.486)
=0.31336292 / 0.31611444
=0.9913

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 - (212.982 + 170.164) / 476.07) / (1 - (170.957 + 161.927) / 435.543)
=0.19518978 / 0.23570348
=0.8281

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
=344.486 / 266.828
=1.291

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))
=(21.851 / (21.851 + 161.927)) / (23.436 / (23.436 + 170.164))
=0.11889889 / 0.12105372
=0.9822

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)
=(52.035 / 344.486) / (45.055 / 266.828)
=0.15105113 / 0.16885409
=0.8946

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)
=((74 + 98.122) / 476.07) / ((87 + 83.279) / 435.543)
=0.36154767 / 0.39095795
=0.9248

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
=(33.122 - -9.846 - 43.225) / 476.07
=-0.0005

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 -1.81 signals that the company is likely to 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 1.0851.06120.99361.09680.82590.92761.25920.83071.14241.6225
GMI 1.02771.08560.94231.04121.22110.98751.01721.01650.88551.0119
AQI 0.83240.83831.01710.44921.03470.98321.61390.94261.31560.7819
SGI 1.08041.02581.00080.55440.9870.94110.96781.12631.08151.1507
DEPI 0.9250.87621.1911.13620.92891.02180.89110.89171.13251.0853
SGAI 0.96181.02081.08931.22990.53250.90270.98451.02371.06650.9136
LVGI 1.03071.13320.97581.18981.04560.90480.95970.97480.81141.0148
TATA -0.0339-0.0746-0.10450.56050.0064-0.0701-0.0363-0.0860.0535-0.0187
M-score -2.55-2.83-2.98-0.45-2.43-2.89-2.18-2.95-1.89-1.92

Cambrex Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.88971.00261.03231.14240.98821.00451.461.62251.18331.4797
GMI 1.01230.90980.90740.88550.90281.02991.02961.01191.07810.9913
AQI 0.99390.98460.94051.31561.32581.33751.25250.78190.86520.8281
SGI 1.14611.13411.08331.08151.05980.97371.041.15071.10041.291
DEPI 0.89870.91211.02451.13251.14651.20331.15961.08531.020.9822
SGAI 1.01741.06781.11161.06651.09171.07950.94690.91360.94210.8946
LVGI 0.90860.92690.91960.81140.85570.91220.96521.01480.93350.9248
TATA -0.0768-0.066-0.09980.05150.03290.05990.1297-0.0105-0.0559-0.0005
M-score -2.79-2.72-2.91-1.90-2.16-2.03-1.26-1.88-2.46-1.81
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