Switch to:
CBS Corp (NYSE:CBS)
Beneish M-Score
-2.21 (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 -2.21 signals that the company is a manipulator.

CBS' s 10-Year Beneish M-Score Range
Min: -5.04   Max: -1.16
Current: -2.21

-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 * 1.0304+0.528 * 1.0538+0.404 * 0.9727+0.892 * 1.01+0.115 * 1.0073
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9881+4.679 * 0.07-0.327 * 1.3531
=-2.21

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was 332 + 394 + 413 + 1639 = $2,778 Mil.
Non Operating Income was 4 + -4 + -20 + -373 = $-393 Mil.
Cash Flow from Operations was 446 + 417 + 987 + -336 = $1,514 Mil.
Accounts Receivable was $3,002 Mil.
Revenue was 3188 + 3570 + 3571 + 3302 = $13,631 Mil.
Gross Profit was 1390 + 1449 + 1449 + 1501 = $5,789 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 $285 Mil.
Selling, General & Admin. Expense(SGA) was $2,484 Mil.
Total Current Liabilities was $3,321 Mil.
Long-Term Debt was $5,846 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)
=(3124 / 13767) / (3002 / 13631)
=0.22691945 / 0.22023329
=1.0304

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)
=(1358 / 13631) / (1312 / 13767)
=0.42469371 / 0.40299266
=1.0538

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 - (5232 + 1376) / 23662) / (1 - (5392 + 1424) / 26316)
=0.72073367 / 0.74099407
=0.9727

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
=13767 / 13631
=1.01

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))
=(285 / (285 + 1424)) / (273 / (273 + 1376))
=0.16676419 / 0.16555488
=1.0073

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)
=(2479 / 13767) / (2484 / 13631)
=0.18006828 / 0.18223168
=0.9881

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)
=((7686 + 3467) / 23662) / ((5846 + 3321) / 26316)
=0.47134646 / 0.34834321
=1.3531

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
=(2778 - -393 - 1514) / 23662
=0.07

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 -2.21 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.91250.95880.94721.0171.09441.05581.10331.10641.02781.0304
GMI 0.98511.0261.04321.03551.02321.00591.01251.01331.03871.0538
AQI 1.03781.08231.05111.06171.01181.01840.9780.95570.99970.9727
SGI 1.02941.05171.06211.01370.96370.94840.95050.96670.99451.01
DEPI 0.92191.08631.16821.04441.7380.88160.78921.01020.60791.0073
SGAI 0.9940.96640.99330.96890.99141.00510.97440.98450.98120.9881
LVGI 1.03990.99161.03271.03381.11380.91571.12771.13891.02791.3531
TATA -0.00170.00610.0057-00.00390.01520.10780.08580.08770.07
M-score -2.56-2.38-2.39-2.41-2.34-2.38-1.99-2.06-2.08-2.21
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK