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GuruFocus has detected 4 Warning Signs with Century Casinos Inc $CNTY.
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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-2.65 (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 -2.65 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: -2.65

-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 * 0.9231+0.528 * 0.972+0.404 * 1.8142+0.892 * 1.0137+0.115 * 0.9327
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0453+4.679 * -0.0773-0.327 * 1.1396
=-2.65

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $3.6 Mil.
Revenue was 34.526 + 35.201 + 32.53 + 32.628 = $134.9 Mil.
Gross Profit was 17.109 + 18.157 + 16.462 + 15.71 = $67.4 Mil.
Total Current Assets was $39.3 Mil.
Total Assets was $219.5 Mil.
Property, Plant and Equipment(Net PPE) was $134.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.5 Mil.
Selling, General & Admin. Expense(SGA) was $44.7 Mil.
Total Current Liabilities was $24.8 Mil.
Long-Term Debt was $52.8 Mil.
Net Income was 1.887 + 2.249 + 1.894 + 0.737 = $6.8 Mil.
Non Operating Income was 0.02 + 1.56 + 0.198 + 0.984 = $2.8 Mil.
Cash Flow from Operations was 6.679 + 5.616 + 3.263 + 5.403 = $21.0 Mil.
Accounts Receivable was $3.9 Mil.
Revenue was 33.526 + 37.875 + 30.405 + 31.258 = $133.1 Mil.
Gross Profit was 17.395 + 20.696 + 13.439 + 13.134 = $64.7 Mil.
Total Current Assets was $35.7 Mil.
Total Assets was $190.4 Mil.
Property, Plant and Equipment(Net PPE) was $132.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.8 Mil.
Selling, General & Admin. Expense(SGA) was $42.2 Mil.
Total Current Liabilities was $24.9 Mil.
Long-Term Debt was $34.3 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)
=(3.642 / 134.885) / (3.892 / 133.064)
=0.02700078 / 0.02924908
=0.9231

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)
=(64.664 / 133.064) / (67.438 / 134.885)
=0.48596164 / 0.49996664
=0.972

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 - (39.312 + 134.132) / 219.484) / (1 - (35.651 + 132.77) / 190.441)
=0.20976472 / 0.11562636
=1.8142

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
=134.885 / 133.064
=1.0137

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))
=(7.795 / (7.795 + 132.77)) / (8.479 / (8.479 + 134.132))
=0.05545477 / 0.05945544
=0.9327

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)
=(44.726 / 134.885) / (42.212 / 133.064)
=0.33158617 / 0.31723081
=1.0453

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)
=((52.846 + 24.845) / 219.484) / ((34.286 + 24.865) / 190.441)
=0.35397113 / 0.31060013
=1.1396

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
=(6.767 - 2.762 - 20.961) / 219.484
=-0.0773

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 -2.65 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.13120.84630.97640.87531.81373.79121.86621.88020.81680.9231
GMI 1.08611.07821.05180.97860.88460.83940.82310.82350.9150.972
AQI 0.99330.94060.88750.89480.90190.93420.93920.98070.98841.8142
SGI 1.4361.27231.14781.04871.07351.12561.11991.12541.04881.0137
DEPI 0.87710.89360.86170.92730.97140.99410.95970.98710.91120.9327
SGAI 1.09131.0611.02571.04560.96510.9750.98060.98871.06761.0453
LVGI 1.39141.44441.09221.11421.07580.98450.9170.86990.86671.1396
TATA -0.0347-0.0145-0.0353-0.0431-0.027-0.0513-0.0529-0.0529-0.0799-0.0773
M-score -2.25-2.60-2.60-2.86-1.91-0.14-1.92-1.86-3.01-2.65
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