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CBS Corp (NYSE:CBS)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

CBS' s 10-Year Beneish M-Score Range
Min: -5.04   Max: -1.16
Current: -2.46

-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 -2.53.


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 * 0.9969+0.528 * 0.9896+0.404 * 1.0184+0.892 * 1.0044+0.115 * 0.3395
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0059+4.679 * 0.0152-0.327 * 0.9157
=-2.46

* 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 $3,002 Mil.
Revenue was 3188 + 3856 + 3911 + 3634 = $14,589 Mil.
Gross Profit was 1390 + 1572 + 1608 + 1662 = $6,232 Mil.
Total Current Assets was $5,392 Mil.
Total Assets was $26,316 Mil.
Property, Plant and Equipment(Net PPE) was $1,424 Mil.
Depreciation, Depletion and Amortization(DDA) was $452 Mil.
Selling, General & Admin. Expense(SGA) was $2,633 Mil.
Total Current Liabilities was $3,321 Mil.
Long-Term Debt was $5,846 Mil.
Net Income was 439 + 468 + 470 + 494 = $1,871 Mil.
Non Operating Income was 6 + 5 + 8 + 7 = $26 Mil.
Cash Flow from Operations was 123 + 501 + 553 + 269 = $1,446 Mil.
Accounts Receivable was $2,998 Mil.
Revenue was 3369 + 4040 + 3698 + 3418 = $14,525 Mil.
Gross Profit was 1477 + 1566 + 1548 + 1549 = $6,140 Mil.
Total Current Assets was $4,770 Mil.
Total Assets was $25,693 Mil.
Property, Plant and Equipment(Net PPE) was $2,228 Mil.
Depreciation, Depletion and Amortization(DDA) was $199 Mil.
Selling, General & Admin. Expense(SGA) was $2,606 Mil.
Total Current Liabilities was $3,825 Mil.
Long-Term Debt was $5,949 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)
=(3002 / 14589) / (2998 / 14525)
=0.20577147 / 0.20640275
=0.9969

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)
=(1572 / 14525) / (1390 / 14589)
=0.42271945 / 0.42717116
=0.9896

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 - (5392 + 1424) / 26316) / (1 - (4770 + 2228) / 25693)
=0.74099407 / 0.72763009
=1.0184

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
=14589 / 14525
=1.0044

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))
=(198.5 / (198.5 + 2228)) / (452 / (452 + 1424))
=0.08180507 / 0.24093817
=0.3395

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)
=(2633 / 14589) / (2606 / 14525)
=0.18047844 / 0.1794148
=1.0059

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)
=((5846 + 3321) / 26316) / ((5949 + 3825) / 25693)
=0.34834321 / 0.3804149
=0.9157

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
=(1871 - 26 - 1446) / 26316
=0.0152

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 -2.46 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.02280.98561.03190.97340.90290.94880.93621.03671.03430.9969
GMI 1.2381.23890.94870.98170.99551.03691.02831.01831.00680.9896
AQI 1.00250.9830.99541.00021.03781.08231.05111.01961.01181.0184
SGI 1.03550.99750.99641.04431.04041.06291.07451.05011.01971.0044
DEPI 1.13811.16311.49821.52711.4141.95230.66380.66630.66540.3395
SGAI 0.99421.02080.95710.97090.98350.95631.0020.96930.99221.0059
LVGI 0.98831.01690.95410.98571.03990.99161.03271.03381.11380.9157
TATA -0.00170.00290.0130.00360.01020.01820.0057-00.00390.0152
M-score -2.29-2.35-2.34-2.39-2.44-2.21-2.46-2.43-2.48-2.46
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