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CBS Corp (NYSE:CBS)
Beneish M-Score
-2.43 (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 -2.43 suggests that the company is not a manipulator.

CBS' s 10-Year Beneish M-Score Range
Min: -5.04   Max: -1.16
Current: -2.43

-5.04
-1.16

During the past 13 years, the highest Beneish M-Score of CBS Corp was -1.16. 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 * 1.0011+0.528 * 1.0148+0.404 * 1.0118+0.892 * 1.0535+0.115 * 1.0206
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9797+4.679 * 0.004-0.327 * 1.1138
=-2.43

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $3,301 Mil.
Revenue was 3856 + 3911 + 3634 + 3699 = $15,100 Mil.
Gross Profit was 1572 + 1608 + 1662 + 1635 = $6,477 Mil.
Total Current Assets was $5,077 Mil.
Total Assets was $26,115 Mil.
Property, Plant and Equipment(Net PPE) was $2,179 Mil.
Depreciation, Depletion and Amortization(DDA) was $453 Mil.
Selling, General & Admin. Expense(SGA) was $2,727 Mil.
Total Current Liabilities was $4,072 Mil.
Long-Term Debt was $7,448 Mil.
Net Income was 468 + 470 + 494 + 472 = $1,904 Mil.
Non Operating Income was 5 + 8 + 7 + -7 = $13 Mil.
Cash Flow from Operations was 501 + 553 + 269 + 464 = $1,787 Mil.
Accounts Receivable was $3,130 Mil.
Revenue was 4040 + 3698 + 3266 + 3329 = $14,333 Mil.
Gross Profit was 1566 + 1548 + 1549 + 1576 = $6,239 Mil.
Total Current Assets was $5,259 Mil.
Total Assets was $26,111 Mil.
Property, Plant and Equipment(Net PPE) was $2,215 Mil.
Depreciation, Depletion and Amortization(DDA) was $472 Mil.
Selling, General & Admin. Expense(SGA) was $2,642 Mil.
Total Current Liabilities was $4,440 Mil.
Long-Term Debt was $5,901 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)
=(3301 / 15100) / (3130 / 14333)
=0.21860927 / 0.21837717
=1.0011

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)
=(1608 / 14333) / (1572 / 15100)
=0.43528919 / 0.4289404
=1.0148

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 - (5077 + 2179) / 26115) / (1 - (5259 + 2215) / 26111)
=0.72215202 / 0.71376048
=1.0118

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
=15100 / 14333
=1.0535

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))
=(472 / (472 + 2215)) / (453 / (453 + 2179))
=0.17566059 / 0.17211246
=1.0206

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)
=(2727 / 15100) / (2642 / 14333)
=0.18059603 / 0.18432987
=0.9797

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)
=((7448 + 4072) / 26115) / ((5901 + 4440) / 26111)
=0.44112579 / 0.39603998
=1.1138

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
=(1904 - 13 - 1787) / 26115
=0.004

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 -2.43 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 11.25241.02090.9651.03591.13051.08240.93820.98391.0035
GMI 10.96280.9871.00871.07431.14580.90120.87170.97121.0263
AQI 10.91490.9611.04070.89430.98361.01161.00721.00021.0196
SGI 10.60771.01470.98270.99130.93291.03471.01271.03311.0848
DEPI 12.32661.03151.01180.89850.88741.08110.90660.99811.0193
SGAI 10.99781.0240.97440.98711.02250.95781.04030.98130.9572
LVGI 11.43850.90181.08051.53230.96380.91260.98670.98571.0338
TATA -0.0336-0.0266-0.001-0.0224-0.5136-0.0252-0.0359-0.0165-0.00810
M-score -2.64-2.77-2.44-2.63-5.04-2.47-2.54-2.68-2.51-2.38

CBS Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.93821.02280.98561.04350.98390.91250.93730.90551.00351.0011
GMI 0.87170.90560.91970.93810.97120.98511.02331.03691.02631.0148
AQI 1.00721.00250.9830.99541.00021.03781.08231.05111.01961.0118
SGI 1.01271.03560.99750.98541.03311.02941.07591.11091.08481.0535
DEPI 0.90660.97930.99971.04110.99810.92190.92160.89321.01931.0206
SGAI 1.04030.99421.02080.96780.98130.9940.96430.98870.95720.9797
LVGI 0.98670.98831.01690.95410.98571.03990.99161.03271.03381.1138
TATA -0.0165-0.00170.00290.0013-0.0081-0.00170.00620.005700.004
M-score -2.68-2.48-2.54-2.46-2.51-2.56-2.40-2.42-2.38-2.43
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