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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-1.92 (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 -1.92 signals that the company is a manipulator.

CNTY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33   Max: -1.39
Current: -1.92

-3.33
-1.39

During the past 13 years, the highest Beneish M-Score of Century Casinos Inc was -1.39. The lowest was -3.33. And the median was -2.60.


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 * 1.8662+0.528 * 0.8231+0.404 * 0.9392+0.892 * 1.1199+0.115 * 0.9597
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9806+4.679 * -0.0529-0.327 * 0.917
=-1.92

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $3.3 Mil.
Revenue was 32.628 + 33.526 + 37.875 + 30.405 = $134.4 Mil.
Gross Profit was 15.71 + 17.395 + 20.696 + 13.439 = $67.2 Mil.
Total Current Assets was $34.5 Mil.
Total Assets was $187.1 Mil.
Property, Plant and Equipment(Net PPE) was $131.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.0 Mil.
Selling, General & Admin. Expense(SGA) was $42.7 Mil.
Total Current Liabilities was $23.3 Mil.
Long-Term Debt was $32.4 Mil.
Net Income was 0.737 + 2.728 + 6.597 + 1.845 = $11.9 Mil.
Non Operating Income was 0.984 + 0.24 + 0.407 + 0.495 = $2.1 Mil.
Cash Flow from Operations was 6.387 + 6.04 + 4.67 + 2.577 = $19.7 Mil.
Accounts Receivable was $1.6 Mil.
Revenue was 31.258 + 28.123 + 31.555 + 29.11 = $120.0 Mil.
Gross Profit was 13.134 + 11.817 + 13.022 + 11.448 = $49.4 Mil.
Total Current Assets was $30.2 Mil.
Total Assets was $187.1 Mil.
Property, Plant and Equipment(Net PPE) was $134.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.8 Mil.
Selling, General & Admin. Expense(SGA) was $38.9 Mil.
Total Current Liabilities was $28.1 Mil.
Long-Term Debt was $32.6 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)
=(3.279 / 134.434) / (1.569 / 120.046)
=0.02439115 / 0.01306999
=1.8662

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)
=(17.395 / 120.046) / (15.71 / 134.434)
=0.41168385 / 0.50017109
=0.8231

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 - (34.54 + 131.582) / 187.083) / (1 - (30.163 + 134.627) / 187.112)
=0.11204118 / 0.11929753
=0.9392

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
=134.434 / 120.046
=1.1199

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))
=(7.835 / (7.835 + 134.627)) / (7.999 / (7.999 + 131.582))
=0.05499712 / 0.05730723
=0.9597

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)
=(42.749 / 134.434) / (38.929 / 120.046)
=0.31799247 / 0.32428402
=0.9806

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)
=((32.397 + 23.3) / 187.083) / ((32.622 + 28.128) / 187.112)
=0.29771278 / 0.32467185
=0.917

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
=(11.907 - 2.126 - 19.674) / 187.083
=-0.0529

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 -1.92 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 2.12070.35241.37331.88251.18570.87220.62331.37350.97641.8663
GMI 1.08470.9931.04471.00021.08021.00991.00871.02641.03980.8231
AQI 1.47270.98770.65650.52361.22051.07171.14121.63740.88750.9392
SGI 1.50311.62840.57870.93771.22021.16761.01361.45611.14781.1198
DEPI 1.26370.45130.97521.43021.16880.95771.27370.96250.86170.9597
SGAI 1.16230.86271.24540.96110.95140.90190.98071.04221.04190.9805
LVGI 2.08070.92080.8840.50210.90690.90610.7582.51031.09220.917
TATA -0.0375-0.0459-0.16910.0305-0.0523-0.0575-0.037-0.0213-0.0353-0.0529
M-score -1.29-2.75-3.43-1.55-2.17-2.64-2.81-2.06-2.61-1.92

Century Casinos Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.66821.37350.95071.13120.84630.97640.87531.81373.79121.8662
GMI 1.00331.01471.08221.08611.07821.05180.97860.88460.83940.8231
AQI 1.62431.63741.68940.99330.94060.88750.89480.90190.93420.9392
SGI 1.29611.45611.60151.4361.27231.14781.04871.07351.12561.1199
DEPI 0.9380.96250.89410.87710.89360.86170.92730.97140.99410.9597
SGAI 1.03861.05871.05081.09131.0611.02571.04560.96510.9750.9806
LVGI 2.02662.51031.95881.39141.44441.09221.11421.07580.98450.917
TATA -0.0299-0.0213-0.0237-0.0347-0.0145-0.0353-0.0431-0.021-0.0462-0.0529
M-score -2.76-2.07-2.11-2.25-2.60-2.60-2.86-1.89-0.12-1.92
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