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CBS Corp (NYSE:CBS)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

CBS' s Beneish M-Score Range Over the Past 10 Years
Min: -5.04   Max: -1.95
Current: -2.45

-5.04
-1.95

During the past 13 years, the highest Beneish M-Score of CBS Corp was -1.95. 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 * 1.0428+0.528 * 1.0338+0.404 * 0.9832+0.892 * 1.0058+0.115 * 1.0364
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9914+4.679 * 0.0019-0.327 * 1.1295
=-2.45

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $3,628 Mil.
Revenue was 3910 + 3257 + 3219 + 3500 = $13,886 Mil.
Gross Profit was 1477 + 1415 + 1312 + 1358 = $5,562 Mil.
Total Current Assets was $5,747 Mil.
Total Assets was $23,765 Mil.
Property, Plant and Equipment(Net PPE) was $1,405 Mil.
Depreciation, Depletion and Amortization(DDA) was $264 Mil.
Selling, General & Admin. Expense(SGA) was $2,455 Mil.
Total Current Liabilities was $3,560 Mil.
Long-Term Debt was $8,226 Mil.
Net Income was 261 + 426 + 332 + 394 = $1,413 Mil.
Non Operating Income was -22 + -4 + 4 + -4 = $-26 Mil.
Cash Flow from Operations was 771 + -240 + 446 + 417 = $1,394 Mil.
Accounts Receivable was $3,459 Mil.
Revenue was 3681 + 3367 + 3188 + 3570 = $13,806 Mil.
Gross Profit was 1447 + 1431 + 1390 + 1449 = $5,717 Mil.
Total Current Assets was $5,485 Mil.
Total Assets was $23,935 Mil.
Property, Plant and Equipment(Net PPE) was $1,433 Mil.
Depreciation, Depletion and Amortization(DDA) was $281 Mil.
Selling, General & Admin. Expense(SGA) was $2,462 Mil.
Total Current Liabilities was $4,033 Mil.
Long-Term Debt was $6,476 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)
=(3628 / 13886) / (3459 / 13806)
=0.26127034 / 0.25054324
=1.0428

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)
=(1415 / 13806) / (1477 / 13886)
=0.41409532 / 0.40054731
=1.0338

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 - (5747 + 1405) / 23765) / (1 - (5485 + 1433) / 23935)
=0.69905323 / 0.7109672
=0.9832

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
=13886 / 13806
=1.0058

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))
=(281 / (281 + 1433)) / (264 / (264 + 1405))
=0.16394399 / 0.15817855
=1.0364

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)
=(2455 / 13886) / (2462 / 13806)
=0.17679677 / 0.17832826
=0.9914

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)
=((8226 + 3560) / 23765) / ((6476 + 4033) / 23935)
=0.49593941 / 0.43906413
=1.1295

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
=(1413 - -26 - 1394) / 23765
=0.0019

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 -2.45 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 1.05160.9651.03591.13051.03670.93771.02780.95031.18411.0428
GMI 0.981.00871.07431.14580.91860.87470.94961.02631.02241.0338
AQI 0.9611.04070.89430.98361.01161.00721.00021.06170.95930.9832
SGI 0.98510.98270.99130.93291.08031.01320.9891.08480.90331.0058
DEPI 1.14511.00230.9070.88740.980.92011.08490.7261.45341.0364
SGAI 1.0470.97440.98711.02250.97291.03970.96670.95720.99660.9914
LVGI 0.90181.08051.53230.96380.91260.98670.98571.03381.14181.1295
TATA -0.0048-0.0224-0.5136-0.0252-0.0359-0.0163-0.008100.08630.0019
M-score -2.45-2.63-5.04-2.47-2.55-2.68-2.51-2.45-1.99-2.45

CBS Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.03860.92540.99750.96261.00621.10641.02781.03041.00851.0428
GMI 1.04881.03281.02071.00161.00711.01331.03871.05381.03091.0338
AQI 1.05111.06171.01181.01840.9780.95930.99970.97271.00560.9832
SGI 0.96851.1141.05731.04021.04230.96670.99451.010.99721.0058
DEPI 2.18080.7171.19060.52770.42271.01020.60791.00731.02751.0364
SGAI 1.00970.95090.97440.98920.95860.98450.98120.98811.01320.9914
LVGI 1.03271.03381.11380.91571.12771.14181.02791.35311.16331.1295
TATA 0.0057-00.00390.01520.10780.08630.08770.07-0.00090.0019
M-score -2.28-2.44-2.41-2.42-2.04-2.06-2.08-2.21-2.51-2.45
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