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CBS Corp (NYSE:CBS)
Beneish M-Score
-2.58 (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 -2.58 suggests that the company is not a manipulator.

CBS' s Beneish M-Score Range Over the Past 10 Years
Min: -5.04   Max: -1.41
Current: -2.58

-5.04
-1.41

During the past 13 years, the highest Beneish M-Score of CBS Corp was -1.41. 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 * 0.932+0.528 * 0.9924+0.404 * 1.0009+0.892 * 1.0575+0.115 * 1.0373
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9814+4.679 * -0.0182-0.327 * 1.0242
=-2.58

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $3,348 Mil.
Revenue was 3396 + 3287 + 3849 + 3910 = $14,442 Mil.
Gross Profit was 1499 + 1426 + 1493 + 1477 = $5,895 Mil.
Total Current Assets was $5,457 Mil.
Total Assets was $23,848 Mil.
Property, Plant and Equipment(Net PPE) was $1,345 Mil.
Depreciation, Depletion and Amortization(DDA) was $253 Mil.
Selling, General & Admin. Expense(SGA) was $2,552 Mil.
Total Current Liabilities was $3,098 Mil.
Long-Term Debt was $8,902 Mil.
Net Income was 478 + 423 + 473 + 261 = $1,635 Mil.
Non Operating Income was 2 + -4 + -3 + -3 = $-8 Mil.
Cash Flow from Operations was 55 + 223 + 1028 + 771 = $2,077 Mil.
Accounts Receivable was $3,397 Mil.
Revenue was 3257 + 3219 + 3500 + 3681 = $13,657 Mil.
Gross Profit was 1415 + 1312 + 1358 + 1447 = $5,532 Mil.
Total Current Assets was $5,555 Mil.
Total Assets was $24,239 Mil.
Property, Plant and Equipment(Net PPE) was $1,374 Mil.
Depreciation, Depletion and Amortization(DDA) was $270 Mil.
Selling, General & Admin. Expense(SGA) was $2,459 Mil.
Total Current Liabilities was $3,432 Mil.
Long-Term Debt was $8,476 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)
=(3348 / 14442) / (3397 / 13657)
=0.23182385 / 0.24873691
=0.932

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)
=(5532 / 13657) / (5895 / 14442)
=0.405067 / 0.40818446
=0.9924

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 - (5457 + 1345) / 23848) / (1 - (5555 + 1374) / 24239)
=0.71477692 / 0.71413837
=1.0009

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
=14442 / 13657
=1.0575

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))
=(270 / (270 + 1374)) / (253 / (253 + 1345))
=0.16423358 / 0.1583229
=1.0373

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)
=(2552 / 14442) / (2459 / 13657)
=0.17670683 / 0.18005418
=0.9814

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)
=((8902 + 3098) / 23848) / ((8476 + 3432) / 24239)
=0.50318685 / 0.49127439
=1.0242

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
=(1635 - -8 - 2077) / 23848
=-0.0182

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 -2.58 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 local exchange's currency.

CBS Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.02090.9651.03591.13051.08240.93821.08130.94371.0851.0428
GMI 0.9871.00871.07431.14580.90120.87170.97381.03211.01411.0338
AQI 0.9611.04070.89430.98361.01161.00721.00021.06170.95930.9832
SGI 1.01470.98270.99130.93291.03471.01270.94011.09240.98581.0058
DEPI 1.03151.00230.9070.88741.08110.90661.4540.7171.01021.0364
SGAI 1.0240.97440.98711.02250.95781.04030.99990.95440.98090.9914
LVGI 0.90181.08051.53230.96380.91260.98670.98571.03381.14181.1295
TATA -0.0048-0.0224-0.5136-0.0252-0.0359-0.0165-0.0082-00.08630.0019
M-score -2.46-2.63-5.04-2.47-2.54-2.68-2.45-2.44-2.06-2.45

CBS Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.96261.00621.10641.02781.03041.00851.04281.05190.99920.932
GMI 1.00161.00711.01331.03871.05381.03091.03381.02340.99190.9924
AQI 1.01840.9780.95930.99970.97271.00560.98320.97791.00061.0009
SGI 1.04021.04230.96670.99451.010.99721.00581.03631.03891.0575
DEPI 0.52770.42271.01020.60791.00731.02751.03641.04621.03911.0373
SGAI 0.98920.95860.98450.98120.98811.01320.99140.97320.97420.9814
LVGI 0.91571.12771.14181.02791.35311.16331.12951.08951.0371.0242
TATA 0.01520.10780.08630.08850.0708-0.00010.0019-0.0216-0.008-0.0182
M-score -2.42-2.04-2.06-2.08-2.21-2.51-2.45-2.52-2.49-2.58
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