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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-3.01 (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 -3.01 suggests that the company is not a manipulator.

CNTY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.68   Max: 26.33
Current: -3.01

-3.68
26.33

During the past 13 years, the highest Beneish M-Score of Century Casinos Inc was 26.33. The lowest was -3.68. And the median was -2.52.


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 * 0.8168+0.528 * 0.915+0.404 * 0.9884+0.892 * 1.0488+0.115 * 0.9112
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0676+4.679 * -0.0799-0.327 * 0.8667
=-3.01

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $3.1 Mil.
Revenue was 35.201 + 32.53 + 32.628 + 33.526 = $133.9 Mil.
Gross Profit was 18.157 + 16.462 + 15.71 + 17.395 = $67.7 Mil.
Total Current Assets was $36.7 Mil.
Total Assets was $194.1 Mil.
Property, Plant and Equipment(Net PPE) was $135.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.4 Mil.
Selling, General & Admin. Expense(SGA) was $44.8 Mil.
Total Current Liabilities was $21.6 Mil.
Long-Term Debt was $33.2 Mil.
Net Income was 2.249 + 1.894 + 0.737 + 2.728 = $7.6 Mil.
Non Operating Income was 1.56 + 0.198 + 0.984 + 0.24 = $3.0 Mil.
Cash Flow from Operations was 5.616 + 3.263 + 6.387 + 4.878 = $20.1 Mil.
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.



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)
=(3.059 / 133.885) / (3.571 / 127.661)
=0.02284797 / 0.02797252
=0.8168

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)
=(59.086 / 127.661) / (67.724 / 133.885)
=0.46283517 / 0.5058371
=0.915

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 - (36.69 + 135.056) / 194.148) / (1 - (34.597 + 137.412) / 194.744)
=0.1153862 / 0.11674301
=0.9884

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
=133.885 / 127.661
=1.0488

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))
=(7.767 / (7.767 + 137.412)) / (8.424 / (8.424 + 135.056))
=0.05349947 / 0.05871202
=0.9112

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)
=(44.82 / 133.885) / (40.029 / 127.661)
=0.33476491 / 0.313557
=1.0676

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)
=((33.159 + 21.587) / 194.148) / ((37.859 + 25.504) / 194.744)
=0.28198076 / 0.32536561
=0.8667

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
=(7.608 - 2.982 - 20.144) / 194.148
=-0.0799

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 -3.01 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 own currency.

Century Casinos Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 2.12070.54710.88471.88251.18570.87220.62331.37350.97641.8663
GMI 1.08471.01431.02281.00021.08021.00991.00871.01471.05170.8231
AQI 1.47270.98770.65650.52361.22051.07171.14121.63740.88750.9392
SGI 1.50311.0490.89840.93771.22021.16761.01361.45611.14781.1198
DEPI 1.26370.45130.97521.43021.16880.95771.27370.96250.86170.9597
SGAI 1.16231.0541.01930.96110.95140.90220.98041.05871.02570.9805
LVGI 2.08070.92080.8840.50210.90690.90610.7582.51031.09220.917
TATA -0.0375-0.075-0.13810.0305-0.0523-0.0575-0.037-0.0213-0.0353-0.0529
M-score -1.29-3.25-3.42-1.55-2.17-2.64-2.81-2.07-2.60-1.92

Century Casinos Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.95071.13120.84630.97640.87531.81373.79121.86621.88020.8168
GMI 1.08221.08611.07821.05180.97860.88460.83940.82310.82350.915
AQI 1.68940.99330.94060.88750.89480.90190.93420.93920.98070.9884
SGI 1.60151.4361.27231.14781.04871.07351.12561.11991.12541.0488
DEPI 0.89410.87710.89360.86170.92730.97140.99410.95970.98710.9112
SGAI 1.05081.09131.0611.02571.04560.96510.9750.98060.98871.0676
LVGI 1.95881.39141.44441.09221.11421.07580.98450.9170.86990.8667
TATA -0.0237-0.0347-0.0145-0.0353-0.0431-0.027-0.0462-0.0529-0.0529-0.0799
M-score -2.11-2.25-2.60-2.60-2.86-1.91-0.12-1.92-1.86-3.01
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