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CBS Corp (NYSE:CBS)
Beneish M-Score
-2.07 (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 -2.07 signals that the company is a manipulator.

CBS' s 10-Year Beneish M-Score Range
Min: -5.04   Max: -2.07
Current: -2.07

-5.04
-2.07

During the past 13 years, the highest Beneish M-Score of CBS Corp was -2.07. 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 * 1.084+0.528 * 1.0125+0.404 * 0.9557+0.892 * 0.9867+0.115 * 1.0102
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9861+4.679 * 0.0858-0.327 * 1.1389
=-2.07

* 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 $3,459 Mil.
Revenue was 3681 + 3367 + 3188 + 3856 = $14,092 Mil.
Gross Profit was 1447 + 1431 + 1390 + 1572 = $5,840 Mil.
Total Current Assets was $5,589 Mil.
Total Assets was $24,072 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 $2,517 Mil.
Total Current Liabilities was $4,033 Mil.
Long-Term Debt was $6,510 Mil.
Net Income was 413 + 1639 + 439 + 468 = $2,959 Mil.
Non Operating Income was -20 + -373 + 6 + 5 = $-382 Mil.
Cash Flow from Operations was 987 + -336 + 123 + 501 = $1,275 Mil.
Accounts Receivable was $3,234 Mil.
Revenue was 3571 + 3302 + 3369 + 4040 = $14,282 Mil.
Gross Profit was 1449 + 1501 + 1477 + 1566 = $5,993 Mil.
Total Current Assets was $5,370 Mil.
Total Assets was $26,387 Mil.
Property, Plant and Equipment(Net PPE) was $1,461 Mil.
Depreciation, Depletion and Amortization(DDA) was $290 Mil.
Selling, General & Admin. Expense(SGA) was $2,587 Mil.
Total Current Liabilities was $4,207 Mil.
Long-Term Debt was $5,940 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)
=(3459 / 14092) / (3234 / 14282)
=0.24545842 / 0.22643887
=1.084

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)
=(1431 / 14282) / (1447 / 14092)
=0.4196191 / 0.41441953
=1.0125

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 - (5589 + 1433) / 24072) / (1 - (5370 + 1461) / 26387)
=0.70829179 / 0.74112252
=0.9557

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
=14092 / 14282
=0.9867

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))
=(290 / (290 + 1461)) / (281 / (281 + 1433))
=0.16561965 / 0.16394399
=1.0102

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)
=(2517 / 14092) / (2587 / 14282)
=0.17861198 / 0.1811371
=0.9861

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)
=((6510 + 4033) / 24072) / ((5940 + 4207) / 26387)
=0.43797773 / 0.38454542
=1.1389

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
=(2959 - -382 - 1275) / 24072
=0.0858

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 -2.07 signals that the company is likely to 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.25241.02090.9651.03591.13051.08240.93820.98391.03711.085
GMI 0.96280.9871.00871.07431.14580.90120.87170.97121.03481.0141
AQI 0.91490.9611.04070.89430.98361.01161.00721.00021.06170.9557
SGI 0.60771.01470.98270.99130.93291.03471.01271.03310.9940.9858
DEPI 2.32661.03151.01180.89850.88741.08110.90660.99811.04441.0102
SGAI 0.99781.0240.97440.98711.02250.95781.04030.98130.97240.9809
LVGI 1.43850.90181.08051.53230.96380.91260.98670.98571.03381.1389
TATA -0.0266-0.001-0.0224-0.5136-0.0252-0.0359-0.0165-0.0081-00.0858
M-score -2.77-2.44-2.63-5.04-2.47-2.54-2.68-2.51-2.41-2.06

CBS Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.04350.98390.91250.95880.94721.0171.07221.03411.08081.084
GMI 0.93810.97120.98511.0261.04321.03551.0231.00561.01191.0125
AQI 0.99541.00021.03781.08231.05111.06171.01181.01840.9780.9557
SGI 0.98541.03311.02941.05171.06211.01370.98360.96830.97040.9867
DEPI 1.04110.99810.92191.08631.16821.04441.5140.88160.78921.0102
SGAI 0.96780.98130.9940.96640.99330.96890.99241.00620.9760.9861
LVGI 0.95410.98571.03990.99161.03271.03381.11380.91571.12771.1389
TATA 0.0013-0.0081-0.00170.00610.0057-00.00390.01520.10780.0858
M-score -2.46-2.51-2.56-2.38-2.39-2.41-2.37-2.38-1.99-2.07
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