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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-2.24 (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 -2.24 suggests that the company is not a manipulator.

CNTY' s 10-Year Beneish M-Score Range
Min: -3.43   Max: 26.06
Current: -2.24

-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 -2.55.


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 * 1.1312+0.528 * 1.0915+0.404 * 0.9933+0.892 * 1.436+0.115 * 0.8771
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0844+4.679 * -0.0347-0.327 * 1.3914
=-2.24

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 0.156 + 0.51 + -0.211 + 1.073 = $1.5 Mil.
Non Operating Income was 0.045 + 0.13 + 0.488 + 0.066 = $0.7 Mil.
Cash Flow from Operations was 2.409 + 0.308 + 0.962 + 3.725 = $7.4 Mil.
Accounts Receivable was $1.1 Mil.
Revenue was 28.348 + 17.991 + 17.746 + 18.723 = $82.8 Mil.
Gross Profit was 12.313 + 8.759 + 7.513 + 8.235 = $36.8 Mil.
Total Current Assets was $31.1 Mil.
Total Assets was $165.4 Mil.
Property, Plant and Equipment(Net PPE) was $112.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.4 Mil.
Selling, General & Admin. Expense(SGA) was $24.7 Mil.
Total Current Liabilities was $25.8 Mil.
Long-Term Debt was $10.1 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)
=(1.834 / 118.915) / (1.129 / 82.808)
=0.01542278 / 0.01363395
=1.1312

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)
=(11.448 / 82.808) / (13.022 / 118.915)
=0.44464303 / 0.4073582
=1.0915

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 - (31.149 + 134.68) / 190.485) / (1 - (31.084 + 112.756) / 165.392)
=0.12943801 / 0.1303086
=0.9933

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
=118.915 / 82.808
=1.436

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))
=(5.385 / (5.385 + 112.756)) / (7.383 / (7.383 + 134.68))
=0.04558113 / 0.0519699
=0.8771

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)
=(38.392 / 118.915) / (24.654 / 82.808)
=0.32285246 / 0.29772486
=1.0844

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)
=((29.811 + 27.802) / 190.485) / ((10.147 + 25.804) / 165.392)
=0.30245426 / 0.21736843
=1.3914

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
=(1.528 - 0.729 - 7.404) / 190.485
=-0.0347

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 -2.24 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

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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.29161.42610.98940.62330.8380.8960.66821.37350.95071.1312
GMI 1.00020.99980.99471.00870.98850.99431.00591.02021.08771.0915
AQI 1.09331.11221.14941.14121.04051.6031.62431.63741.68940.9933
SGI 1.12021.06561.04051.01361.01311.16451.29611.45611.60151.436
DEPI 1.05471.16631.31241.27371.15771.09670.9380.96250.89410.8771
SGAI 0.91870.91160.93140.98040.98931.00841.03481.05091.04371.0844
LVGI 0.83830.73190.76510.7581.16562.08782.02662.51031.95881.3914
TATA -0.0402-0.0446-0.0507-0.037-0.0349-0.0301-0.0299-0.0213-0.0237-0.0347
M-score -2.18-2.07-2.51-2.81-2.80-2.68-2.75-2.07-2.11-2.24
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