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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-2.06 (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 -2.06 signals that the company is a manipulator.

CNTY' s 10-Year Beneish M-Score Range
Min: -3.43   Max: 26.06
Current: -2.06

-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 * 1.3735+0.528 * 1.0264+0.404 * 1.6374+0.892 * 1.4561+0.115 * 0.9625
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0422+4.679 * -0.0213-0.327 * 2.5103
=-2.06

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1.4 Mil.
Revenue was 29.424 + 28.826 + 28.348 + 17.991 = $104.6 Mil.
Gross Profit was 11.795 + 12.176 + 12.192 + 8.609 = $44.8 Mil.
Total Current Assets was $32.4 Mil.
Total Assets was $190.6 Mil.
Property, Plant and Equipment(Net PPE) was $132.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.6 Mil.
Selling, General & Admin. Expense(SGA) was $32.6 Mil.
Total Current Liabilities was $26.8 Mil.
Long-Term Debt was $29.9 Mil.
Net Income was -0.211 + 1.073 + 3.657 + 1.662 = $6.2 Mil.
Non Operating Income was 0.488 + 0.066 + 2.235 + 0.007 = $2.8 Mil.
Cash Flow from Operations was 0.962 + 3.725 + 1.569 + 1.187 = $7.4 Mil.
Accounts Receivable was $0.7 Mil.
Revenue was 17.746 + 18.723 + 17.791 + 17.569 = $71.8 Mil.
Gross Profit was 7.513 + 8.235 + 7.912 + 7.899 = $31.6 Mil.
Total Current Assets was $26.5 Mil.
Total Assets was $137.3 Mil.
Property, Plant and Equipment(Net PPE) was $99.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.8 Mil.
Selling, General & Admin. Expense(SGA) was $21.5 Mil.
Total Current Liabilities was $13.1 Mil.
Long-Term Debt was $3.2 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)
=(1.4 / 104.589) / (0.7 / 71.829)
=0.01338573 / 0.00974537
=1.3735

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)
=(12.176 / 71.829) / (11.795 / 104.589)
=0.43936293 / 0.42807561
=1.0264

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 - (32.36 + 132.639) / 190.624) / (1 - (26.535 + 99.526) / 137.336)
=0.13442693 / 0.08209792
=1.6374

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
=104.589 / 71.829
=1.4561

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))
=(4.757 / (4.757 + 99.526)) / (6.599 / (6.599 + 132.639))
=0.04561626 / 0.04739367
=0.9625

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)
=(32.553 / 104.589) / (21.451 / 71.829)
=0.31124688 / 0.29863983
=1.0422

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)
=((29.864 + 26.801) / 190.624) / ((3.192 + 13.071) / 137.336)
=0.29726058 / 0.1184176
=2.5103

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
=(6.181 - 2.796 - 7.443) / 190.624
=-0.0213

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 -2.06 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.63051.452.12070.54710.88471.88251.18570.87220.62331.3735
GMI 1.03780.96961.08471.01431.02281.00021.08021.00991.00871.0264
AQI 0.81490.63171.47270.98770.65650.52361.22051.07171.14121.6374
SGI 1.13791.0471.50311.0490.89840.93771.22021.16761.01361.4561
DEPI 1.1841.14721.26370.45130.97521.43021.16880.95771.27370.9625
SGAI 1.01731.1851.16231.0541.01930.96110.95140.90220.98041.0422
LVGI 0.94460.60672.08070.92080.8840.50210.90690.90610.7582.5103
TATA -0.0532-0.0384-0.033-0.0783-0.13810.0305-0.0523-0.0575-0.037-0.0213
M-score -2.96-2.25-1.27-3.26-3.42-1.55-2.17-2.64-2.81-2.06

Century Casinos Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.2380.87221.29161.42610.98940.62330.8380.8960.66821.3735
GMI 1.05321.011.00020.99980.99471.00870.99311.00161.01261.0264
AQI 1.07091.07171.09331.11221.14941.14121.04051.6031.62431.6374
SGI 1.20461.16761.12021.06561.04051.01361.01311.16451.29611.4561
DEPI 0.92240.95771.05471.16631.31241.27371.15771.09670.9380.9625
SGAI 0.93390.90230.91870.91160.93140.98040.98240.99731.0251.0422
LVGI 0.78480.90610.83830.73190.76510.7581.16562.08782.02662.5103
TATA -0.0458-0.0575-0.0402-0.0446-0.0507-0.037-0.0349-0.0301-0.0299-0.0213
M-score -2.16-2.64-2.18-2.07-2.51-2.81-2.80-2.67-2.75-2.06
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