Switch to:
Cryo-Cell International Inc (OTCPK:CCEL)
Beneish M-Score
0.58 (As of Today)

Warning Sign:

Beneish M-Score 0.58 higher than -2.22, which implies that it might have manipulated its financial results.

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.

Cryo-Cell International Inc has a M-score of 0.58 signals that the company is a manipulator.

CCEL' s Beneish M-Score Range Over the Past 10 Years
Min: -5.53   Max: 0.71
Current: 0.58

-5.53
0.71

During the past 13 years, the highest Beneish M-Score of Cryo-Cell International Inc was 0.71. The lowest was -5.53. And the median was -3.03.


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 Cryo-Cell International Inc 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 * 0.891+0.528 * 0.978+0.404 * 5.8884+0.892 * 1.1208+0.115 * 1.22
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9774+4.679 * 0.2027-0.327 * 0.655
=0.58

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

This Year (May16) TTM:Last Year (May15) TTM:
Accounts Receivable was $3.70 Mil.
Revenue was 5.773 + 5.152 + 5.798 + 5.436 = $22.16 Mil.
Gross Profit was 4.342 + 3.804 + 4.326 + 3.929 = $16.40 Mil.
Total Current Assets was $11.14 Mil.
Total Assets was $20.47 Mil.
Property, Plant and Equipment(Net PPE) was $1.05 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General & Admin. Expense(SGA) was $13.47 Mil.
Total Current Liabilities was $10.52 Mil.
Long-Term Debt was $0.65 Mil.
Net Income was 0.637 + -0.123 + -0.219 + 7.83 = $8.13 Mil.
Non Operating Income was 0.3 + -0.018 + -0.658 + -0.013 = $-0.39 Mil.
Cash Flow from Operations was 1.243 + 0.101 + 1.988 + 1.032 = $4.36 Mil.
Accounts Receivable was $3.71 Mil.
Revenue was 5.014 + 4.843 + 4.975 + 4.938 = $19.77 Mil.
Gross Profit was 3.637 + 3.569 + 3.667 + 3.438 = $14.31 Mil.
Total Current Assets was $9.31 Mil.
Total Assets was $10.94 Mil.
Property, Plant and Equipment(Net PPE) was $0.88 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.30 Mil.
Selling, General & Admin. Expense(SGA) was $12.30 Mil.
Total Current Liabilities was $9.11 Mil.
Long-Term Debt was $0.00 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)
=(3.702 / 22.159) / (3.707 / 19.77)
=0.1670653 / 0.18750632
=0.891

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)
=(14.311 / 19.77) / (16.401 / 22.159)
=0.72387456 / 0.74015073
=0.978

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 - (11.135 + 1.049) / 20.469) / (1 - (9.307 + 0.881) / 10.94)
=0.40475842 / 0.06873857
=5.8884

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
=22.159 / 19.77
=1.1208

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))
=(0.299 / (0.299 + 0.881)) / (0.275 / (0.275 + 1.049))
=0.25338983 / 0.20770393
=1.22

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)
=(13.472 / 22.159) / (12.297 / 19.77)
=0.60796967 / 0.62200303
=0.9774

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)
=((0.65 + 10.516) / 20.469) / ((0 + 9.111) / 10.94)
=0.54550784 / 0.83281536
=0.655

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
=(8.125 - -0.389 - 4.364) / 20.469
=0.2027

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.

Cryo-Cell International Inc has a M-score of 0.58 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.

Cryo-Cell International Inc Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15
DSRI 0.97811.97120.93530.97631.04281.28720.92471.11241.1520.7167
GMI 1.10271.03920.96330.86930.99590.98931.03651.01130.99940.9824
AQI 1.05671.24771.17270.93671.88521.2010.7070.51351.0375.6581
SGI 1.18881.01630.98961.0221.00591.00871.00291.0571.05961.0479
DEPI 0.91540.96310.92160.94461.06720.75661.0241.08350.86991.3173
SGAI 1.19711.09830.75650.80771.0551.29741.15880.74541.01730.965
LVGI 1.28361.40940.98770.92180.80041.50961.25510.98631.0480.6479
TATA -0.3184-0.2012-0.1955-0.15130.0622-0.14-0.404-0.06-0.08310.2018
M-score -3.88-2.55-3.38-3.23-1.73-3.03-4.64-2.74-2.690.28

Cryo-Cell International Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
DSRI 1.0291.09421.06281.1521.13770.90411.03230.71660.70330.891
GMI 0.99060.99481.00580.99951.01510.99730.9810.98240.97680.978
AQI 0.57120.811.00181.0370.95340.93475.45265.65816.06975.8884
SGI 1.0721.04911.0391.05950.99671.00111.02071.04791.08911.1208
DEPI 1.05091.03451.01420.86820.94461.01951.17631.31731.16211.22
SGAI 0.7880.87430.90751.01741.02451.061.00290.9650.99670.9774
LVGI 0.96950.95841.02231.0480.99840.97310.67330.64790.69410.655
TATA 0.0130.0734-0.0566-0.0829-0.1395-0.23580.26170.20180.19690.2027
M-score -2.45-2.05-2.64-2.69-3.03-3.700.710.280.400.58
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)
FEEDBACK