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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-1.89 (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.

Century Casinos Inc has a M-score of -1.89 signals that the company is a manipulator.

CNTY' s 10-Year Beneish M-Score Range
Min: -3.43   Max: 26.06
Current: -1.89

-3.43
26.06

During the past 13 years, the highest Beneish M-Score of Century Casinos Inc was 26.06. The lowest was -3.43. And the median was -2.58.


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 Century Casinos 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 * 1.8137+0.528 * 0.8801+0.404 * 0.9019+0.892 * 1.0735+0.115 * 0.9714
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9712+4.679 * -0.021-0.327 * 1.0758
=-1.89

* 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 $3.6 Mil.
Revenue was 37.875 + 30.405 + 31.258 + 28.123 = $127.7 Mil.
Gross Profit was 20.696 + 13.439 + 13.134 + 11.817 = $59.1 Mil.
Total Current Assets was $34.6 Mil.
Total Assets was $194.7 Mil.
Property, Plant and Equipment(Net PPE) was $137.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.8 Mil.
Selling, General & Admin. Expense(SGA) was $40.0 Mil.
Total Current Liabilities was $25.5 Mil.
Long-Term Debt was $37.9 Mil.
Net Income was 6.597 + 1.845 + -0.23 + 0.796 = $9.0 Mil.
Non Operating Income was 0.407 + 0.495 + 0.142 + 0.2 = $1.2 Mil.
Cash Flow from Operations was 4.67 + 2.577 + 5.162 + -0.557 = $11.9 Mil.
Accounts Receivable was $1.8 Mil.
Revenue was 31.555 + 29.11 + 29.424 + 28.826 = $118.9 Mil.
Gross Profit was 13.022 + 11.448 + 11.795 + 12.176 = $48.4 Mil.
Total Current Assets was $31.1 Mil.
Total Assets was $190.5 Mil.
Property, Plant and Equipment(Net PPE) was $134.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.4 Mil.
Selling, General & Admin. Expense(SGA) was $38.4 Mil.
Total Current Liabilities was $27.8 Mil.
Long-Term Debt was $29.8 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)
=(3.571 / 127.661) / (1.834 / 118.915)
=0.02797252 / 0.01542278
=1.8137

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)
=(13.439 / 118.915) / (20.696 / 127.661)
=0.4073582 / 0.46283517
=0.8801

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 - (34.597 + 137.412) / 194.744) / (1 - (31.149 + 134.68) / 190.485)
=0.11674301 / 0.12943801
=0.9019

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
=127.661 / 118.915
=1.0735

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))
=(7.383 / (7.383 + 134.68)) / (7.767 / (7.767 + 137.412))
=0.0519699 / 0.05349947
=0.9714

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)
=(40.029 / 127.661) / (38.392 / 118.915)
=0.313557 / 0.32285246
=0.9712

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)
=((37.859 + 25.504) / 194.744) / ((29.811 + 27.802) / 190.485)
=0.32536561 / 0.30245426
=1.0758

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
=(9.008 - 1.244 - 11.852) / 194.744
=-0.021

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.

Century Casinos Inc has a M-score of -1.89 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.

Century Casinos Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.452.12070.54710.88471.88251.18570.87220.62331.37350.9764
GMI 0.96961.08471.01431.02281.00021.08021.00991.00871.02641.0398
AQI 0.63171.47270.98770.65650.52361.23711.05731.14121.63740.8999
SGI 1.0471.50311.0490.89840.93771.22021.16761.01361.45611.1478
DEPI 1.14721.26370.45130.97521.43021.16880.95771.27370.96250.8617
SGAI 1.1851.16231.0541.01930.96110.95140.90190.98071.04221.0419
LVGI 0.60672.08070.92080.8840.50210.89880.91430.7582.51031.0965
TATA -0.0384-0.033-0.0783-0.13810.0305-0.0522-0.0575-0.037-0.0213-0.0352
M-score -2.25-1.27-3.26-3.42-1.55-2.16-2.65-2.81-2.06-2.61

Century Casinos Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.8380.8960.66821.37350.95071.13120.84630.97640.87531.8137
GMI 0.99311.00161.01261.02641.08541.08351.07141.03980.97120.8801
AQI 1.04051.6031.62431.63741.68940.99330.94060.89990.89480.9019
SGI 1.01311.16451.29611.45611.60151.4361.27231.14781.04871.0735
DEPI 1.15771.09670.9380.96250.89410.87710.89360.86170.92730.9714
SGAI 0.98270.99751.02521.04221.04751.09651.07121.04191.05620.9712
LVGI 1.16562.08782.02662.51031.95881.39141.44441.09651.11421.0758
TATA -0.0349-0.0301-0.0299-0.0213-0.0237-0.0347-0.0145-0.0352-0.0431-0.021
M-score -2.80-2.67-2.75-2.06-2.11-2.25-2.60-2.61-2.87-1.89
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