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CBS Corp (NYSE:CBS)
Beneish M-Score
-2.49 (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.

CBS Corp has a M-score of -2.49 suggests that the company is not a manipulator.

CBS' s Beneish M-Score Range Over the Past 10 Years
Min: -5.04   Max: -1.41
Current: -2.49

-5.04
-1.41

During the past 13 years, the highest Beneish M-Score of CBS Corp was -1.41. The lowest was -5.04. And the median was -2.54.


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 CBS 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 * 0.9992+0.528 * 0.9919+0.404 * 1.0006+0.892 * 1.0389+0.115 * 1.0391
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9742+4.679 * -0.0072-0.327 * 1.037
=-2.49

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $3,243 Mil.
Revenue was 3287 + 3849 + 3910 + 3257 = $14,303 Mil.
Gross Profit was 1426 + 1493 + 1477 + 1415 = $5,811 Mil.
Total Current Assets was $5,096 Mil.
Total Assets was $23,138 Mil.
Property, Plant and Equipment(Net PPE) was $1,356 Mil.
Depreciation, Depletion and Amortization(DDA) was $257 Mil.
Selling, General & Admin. Expense(SGA) was $2,509 Mil.
Total Current Liabilities was $3,087 Mil.
Long-Term Debt was $8,223 Mil.
Net Income was 423 + 473 + 261 + 426 = $1,583 Mil.
Non Operating Income was -4 + -3 + -22 + -4 = $-33 Mil.
Cash Flow from Operations was 223 + 1028 + 771 + -240 = $1,782 Mil.
Accounts Receivable was $3,124 Mil.
Revenue was 3219 + 3500 + 3681 + 3367 = $13,767 Mil.
Gross Profit was 1312 + 1358 + 1447 + 1431 = $5,548 Mil.
Total Current Assets was $5,232 Mil.
Total Assets was $23,662 Mil.
Property, Plant and Equipment(Net PPE) was $1,376 Mil.
Depreciation, Depletion and Amortization(DDA) was $273 Mil.
Selling, General & Admin. Expense(SGA) was $2,479 Mil.
Total Current Liabilities was $3,467 Mil.
Long-Term Debt was $7,686 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)
=(3243 / 14303) / (3124 / 13767)
=0.22673565 / 0.22691945
=0.9992

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)
=(5548 / 13767) / (5811 / 14303)
=0.40299266 / 0.4062784
=0.9919

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 - (5096 + 1356) / 23138) / (1 - (5232 + 1376) / 23662)
=0.72115135 / 0.72073367
=1.0006

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
=14303 / 13767
=1.0389

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))
=(273 / (273 + 1376)) / (257 / (257 + 1356))
=0.16555488 / 0.15933044
=1.0391

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)
=(2509 / 14303) / (2479 / 13767)
=0.17541774 / 0.18006828
=0.9742

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)
=((8223 + 3087) / 23138) / ((7686 + 3467) / 23662)
=0.48880629 / 0.47134646
=1.037

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
=(1583 - -33 - 1782) / 23138
=-0.0072

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.

CBS Corp has a M-score of -2.49 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.

CBS Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.02090.9651.03591.13051.08240.93821.08130.94371.0851.0428
GMI 0.9871.00871.07431.14580.90120.87170.97381.03211.01411.0338
AQI 0.9611.04070.89430.98361.01161.00721.00021.06170.95930.9832
SGI 1.01470.98270.99130.93291.03471.01270.94011.09240.98581.0058
DEPI 1.03151.01180.89850.88741.08110.90661.4540.7171.01021.0364
SGAI 1.0240.97440.98711.02250.95781.04030.99990.95440.98090.9914
LVGI 0.90181.08051.53230.96380.91260.98670.98571.03381.14181.1295
TATA -0.0048-0.0224-0.5136-0.0252-0.0359-0.0165-0.0082-00.08630.0019
M-score -2.46-2.63-5.04-2.47-2.54-2.68-2.45-2.44-2.06-2.45

CBS Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.99750.96261.00621.10641.02781.03041.00851.04281.05190.9992
GMI 1.02071.00161.00711.01331.03871.05381.03091.03381.02340.9919
AQI 1.01181.01840.9780.95930.99970.97271.00560.98320.97791.0006
SGI 1.05731.04021.04230.96670.99451.010.99721.00581.03631.0389
DEPI 1.19060.52770.42271.01020.60791.00731.02751.03641.04621.0391
SGAI 0.97440.98920.95860.98450.98120.98811.01320.99140.97320.9742
LVGI 1.11380.91571.12771.14181.02791.35311.16331.12951.08951.037
TATA 0.00390.01520.10780.08630.08850.0708-0.00010.0027-0.0208-0.0072
M-score -2.41-2.42-2.04-2.06-2.08-2.21-2.51-2.45-2.51-2.49
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