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CBS Corp (NYSE:CBS)
Beneish M-Score
-2.02 (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 -2.02 signals that the company is a manipulator.

CBS' s 10-Year Beneish M-Score Range
Min: -5.07   Max: -1.34
Current: -2.02

-5.07
-1.34

During the past 13 years, the highest Beneish M-Score of CBS Corp was -1.34. The lowest was -5.07. And the median was -2.55.


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 * 0.9608+0.528 * 1.0227+0.404 * 0.978+0.892 * 1.0915+0.115 * 0.4946
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9721+4.679 * 0.1078-0.327 * 1.1277
=-2.02

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $3,378 Mil.
Revenue was 3367 + 3188 + 3856 + 4850 = $15,261 Mil.
Gross Profit was 1431 + 1390 + 1572 + 2039 = $6,432 Mil.
Total Current Assets was $5,404 Mil.
Total Assets was $23,455 Mil.
Property, Plant and Equipment(Net PPE) was $1,394 Mil.
Depreciation, Depletion and Amortization(DDA) was $450 Mil.
Selling, General & Admin. Expense(SGA) was $2,678 Mil.
Total Current Liabilities was $3,397 Mil.
Long-Term Debt was $6,508 Mil.
Net Income was 1639 + 439 + 468 + 470 = $3,016 Mil.
Non Operating Income was -373 + 6 + 5 + 8 = $-354 Mil.
Cash Flow from Operations was -336 + 123 + 501 + 553 = $841 Mil.
Accounts Receivable was $3,221 Mil.
Revenue was 3302 + 3369 + 4040 + 3271 = $13,982 Mil.
Gross Profit was 1501 + 1477 + 1566 + 1483 = $6,027 Mil.
Total Current Assets was $4,892 Mil.
Total Assets was $25,895 Mil.
Property, Plant and Equipment(Net PPE) was $2,200 Mil.
Depreciation, Depletion and Amortization(DDA) was $302 Mil.
Selling, General & Admin. Expense(SGA) was $2,524 Mil.
Total Current Liabilities was $3,753 Mil.
Long-Term Debt was $5,944 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)
=(3378 / 15261) / (3221 / 13982)
=0.22134854 / 0.23036762
=0.9608

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)
=(1390 / 13982) / (1431 / 15261)
=0.43105421 / 0.42146648
=1.0227

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 - (5404 + 1394) / 23455) / (1 - (4892 + 2200) / 25895)
=0.71016841 / 0.72612473
=0.978

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
=15261 / 13982
=1.0915

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))
=(302 / (302 + 2200)) / (450 / (450 + 1394))
=0.12070344 / 0.24403471
=0.4946

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)
=(2678 / 15261) / (2524 / 13982)
=0.17547998 / 0.18051781
=0.9721

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)
=((6508 + 3397) / 23455) / ((5944 + 3753) / 25895)
=0.42229802 / 0.37447384
=1.1277

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
=(3016 - -354 - 841) / 23455
=0.1078

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 -2.02 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.15111.00141.04880.9651.03591.13051.03670.98880.97471.0035
GMI 0.87711.09820.981.00871.07431.14580.91860.87470.94961.0263
AQI 0.96940.93380.97551.04070.89270.98551.01160.99961.00791.0196
SGI 0.84730.64530.98510.98270.99130.93291.08031.01320.9891.0848
DEPI 0.96531.09260.99321.00230.9070.88740.980.96351.0361.0193
SGAI 1.11751.00991.0470.97440.98711.02250.97291.03970.96670.9572
LVGI 1.26471.19820.90181.08051.54320.9570.91260.98710.98521.0338
TATA -0.3002-0.0266-0.001-0.0204-0.5172-0.0252-0.0359-0.0163-0.00810
M-score -4.07-2.95-2.45-2.62-5.06-2.47-2.55-2.63-2.56-2.38

CBS Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.96591.01130.97470.96941.04071.05050.98560.97430.9290.9608
GMI 0.93410.95840.94960.95070.97650.98061.02711.02271.01171.0227
AQI 0.9830.99541.00791.03781.08231.05111.01961.01181.01840.978
SGI 1.01781.01680.9890.9690.9690.95751.10451.08251.07791.0915
DEPI 0.9690.98661.0361.04741.31221.50371.01930.99910.5760.4946
SGAI 1.02810.98010.96670.96840.93770.95780.95420.98160.9980.9721
LVGI 1.01690.95410.98521.03990.99161.03271.03381.11380.91571.1277
TATA 0.00310.0012-0.0081-0.00140.00620.00600.0040.01520.1078
M-score -2.54-2.46-2.56-2.56-2.37-2.38-2.38-2.43-2.41-2.02
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