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Cambrex Corp (NYSE:CBM)
Beneish M-Score
-2.36 (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 -2.36 suggests that the company is not a manipulator.

CBM' s 10-Year Beneish M-Score Range
Min: -4.72   Max: -0.04
Current: -2.36

-4.72
-0.04

During the past 13 years, the highest Beneish M-Score of Cambrex Corp was -0.04. The lowest was -4.72. And the median was -2.60.


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 * 0.919+0.528 * 0.9787+0.404 * 1.0803+0.892 * 1.1774+0.115 * 0.909
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9372+4.679 * -0.0077-0.327 * 0.8459
=-2.36

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $77.1 Mil.
Revenue was 129.315 + 81.3 + 97.893 + 66.105 = $374.6 Mil.
Gross Profit was 45.399 + 28.406 + 33.415 + 16.578 = $123.8 Mil.
Total Current Assets was $227.6 Mil.
Total Assets was $487.1 Mil.
Property, Plant and Equipment(Net PPE) was $163.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.8 Mil.
Selling, General & Admin. Expense(SGA) was $52.5 Mil.
Total Current Liabilities was $98.8 Mil.
Long-Term Debt was $60.0 Mil.
Net Income was 27.885 + 8.769 + 19.667 + 0.982 = $57.3 Mil.
Non Operating Income was -0.016 + 0.037 + -4.269 + 0.328 = $-3.9 Mil.
Cash Flow from Operations was 23.597 + 28.841 + -12.052 + 24.582 = $65.0 Mil.
Accounts Receivable was $71.3 Mil.
Revenue was 103.036 + 77.452 + 62.803 + 74.885 = $318.2 Mil.
Gross Profit was 33.938 + 24.966 + 19.251 + 24.749 = $102.9 Mil.
Total Current Assets was $202.6 Mil.
Total Assets was $458.0 Mil.
Property, Plant and Equipment(Net PPE) was $172.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.5 Mil.
Selling, General & Admin. Expense(SGA) was $47.6 Mil.
Total Current Liabilities was $97.3 Mil.
Long-Term Debt was $79.3 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)
=(77.124 / 374.613) / (71.276 / 318.176)
=0.20587646 / 0.22401438
=0.919

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)
=(28.406 / 318.176) / (45.399 / 374.613)
=0.32341849 / 0.33046904
=0.9787

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 - (227.57 + 163.567) / 487.072) / (1 - (202.56 + 171.966) / 458.037)
=0.19696267 / 0.1823237
=1.0803

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
=374.613 / 318.176
=1.1774

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))
=(22.473 / (22.473 + 171.966)) / (23.826 / (23.826 + 163.567))
=0.11557866 / 0.12714456
=0.909

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)
=(52.489 / 374.613) / (47.568 / 318.176)
=0.14011527 / 0.14950216
=0.9372

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 + 98.779) / 487.072) / ((79.25 + 97.271) / 458.037)
=0.32598671 / 0.3853859
=0.8459

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
=(57.303 - -3.92 - 64.968) / 487.072
=-0.0077

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 -2.36 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.03231.09130.98821.00451.461.43730.92211.26940.69180.919
GMI 0.90740.88550.90281.02991.02961.01191.07810.99130.97950.9787
AQI 0.94051.20041.32581.33751.25250.78190.86520.82810.91311.0803
SGI 1.08331.08151.05980.97371.041.15071.10041.2911.22191.1774
DEPI 1.02451.13251.14651.20331.15961.08531.020.98220.92150.909
SGAI 1.11161.06651.09171.07950.94690.91360.94210.89460.9880.9372
LVGI 0.91960.82850.85570.91220.96521.01480.93350.92480.83420.8459
TATA -0.0910.05150.03290.05990.1107-0.026-0.0719-0.0155-0.0689-0.0077
M-score -2.86-2.00-2.16-2.03-1.35-2.13-2.78-2.08-2.89-2.36
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