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

Warning Sign:

Beneish M-Score 0.4 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 0.40 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: 0.4

-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 -3.04.


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 * 0.7033+0.528 * 0.9768+0.404 * 6.0697+0.892 * 1.0891+0.115 * 1.1621
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9967+4.679 * 0.1969-0.327 * 0.6941
=0.40

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

This Year (Feb16) TTM:Last Year (Feb15) TTM:
Accounts Receivable was $3.22 Mil.
Revenue was 5.152 + 5.798 + 5.436 + 5.014 = $21.40 Mil.
Gross Profit was 3.804 + 4.326 + 3.929 + 3.637 = $15.70 Mil.
Total Current Assets was $9.94 Mil.
Total Assets was $19.10 Mil.
Property, Plant and Equipment(Net PPE) was $0.85 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.26 Mil.
Selling, General & Admin. Expense(SGA) was $13.07 Mil.
Total Current Liabilities was $10.18 Mil.
Long-Term Debt was $0.79 Mil.
Net Income was -0.123 + -0.219 + 7.83 + 0.21 = $7.70 Mil.
Non Operating Income was -0.018 + -0.658 + -0.013 + 0.003 = $-0.69 Mil.
Cash Flow from Operations was 0.101 + 1.988 + 1.032 + 1.503 = $4.62 Mil.
Accounts Receivable was $4.20 Mil.
Revenue was 4.843 + 4.975 + 4.938 + 4.893 = $19.65 Mil.
Gross Profit was 3.569 + 3.667 + 3.438 + 3.403 = $14.08 Mil.
Total Current Assets was $8.85 Mil.
Total Assets was $10.52 Mil.
Property, Plant and Equipment(Net PPE) was $0.92 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.34 Mil.
Selling, General & Admin. Expense(SGA) was $12.04 Mil.
Total Current Liabilities was $8.70 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)
=(3.217 / 21.4) / (4.2 / 19.649)
=0.1503271 / 0.21375134
=0.7033

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)
=(4.326 / 19.649) / (3.804 / 21.4)
=0.71642323 / 0.73345794
=0.9768

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 - (9.942 + 0.848) / 19.1) / (1 - (8.847 + 0.918) / 10.519)
=0.43507853 / 0.07167982
=6.0697

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
=21.4 / 19.649
=1.0891

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))
=(0.34 / (0.34 + 0.918)) / (0.257 / (0.257 + 0.848))
=0.27027027 / 0.23257919
=1.1621

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)
=(13.073 / 21.4) / (12.043 / 19.649)
=0.61088785 / 0.61290651
=0.9967

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)
=((0.791 + 10.177) / 19.1) / ((0 + 8.703) / 10.519)
=0.57424084 / 0.82736002
=0.6941

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
=(7.698 - -0.686 - 4.624) / 19.1
=0.1969

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 0.40 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 0.97811.97120.93531.05590.97091.27820.92471.11241.1520.7167
GMI 1.10271.03920.96330.89460.97010.98691.03651.01130.99940.9824
AQI 1.05671.24771.17270.93671.88521.2010.7070.51351.0375.6581
SGI 1.18881.01630.98960.9451.08041.01581.00291.0571.05961.0479
DEPI 0.91540.96310.92160.94461.06720.75661.0241.08350.86991.3173
SGAI 1.19711.09830.75650.87350.98231.28841.15880.74541.01730.965
LVGI 1.28361.40940.98770.92180.80041.50961.25510.98631.0480.6479
TATA -0.3184-0.2012-0.1862-0.24250.0694-0.1497-0.404-0.06-0.08310.2018
M-score -3.88-2.55-3.33-3.65-1.69-3.08-4.64-2.74-2.690.28

Cryo-Cell International Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
DSRI 1.11241.0291.09421.06281.1521.13770.90411.03230.71660.7033
GMI 1.01140.99060.99481.00580.99951.01510.99730.9810.98240.9768
AQI 0.51350.57120.811.00181.0370.95340.93475.45265.65816.0697
SGI 1.0571.0721.04911.0391.05950.99671.00111.02071.04791.0891
DEPI 1.08561.05091.03451.01420.86820.94461.01951.17631.31731.1621
SGAI 0.74530.7880.87430.90751.01741.02451.061.00290.9650.9967
LVGI 0.98630.96950.95841.02231.0480.99840.97310.67330.64790.6941
TATA -0.060.0130.0734-0.0566-0.0829-0.1395-0.23580.26170.20180.1969
M-score -2.74-2.45-2.05-2.64-2.69-3.03-3.700.710.280.40
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