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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

CNTY' s 10-Year Beneish M-Score Range
Min: -3.43   Max: 26.06
Current: -2.86

-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 -2.59.


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 * 0.8753+0.528 * 0.9786+0.404 * 0.8948+0.892 * 1.0487+0.115 * 0.9273
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0456+4.679 * -0.0431-0.327 * 1.1142
=-2.86

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1.2 Mil.
Revenue was 30.405 + 31.258 + 28.123 + 31.555 = $121.3 Mil.
Gross Profit was 13.439 + 13.134 + 11.817 + 13.022 = $51.4 Mil.
Total Current Assets was $30.0 Mil.
Total Assets was $183.6 Mil.
Property, Plant and Equipment(Net PPE) was $131.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.8 Mil.
Selling, General & Admin. Expense(SGA) was $39.8 Mil.
Total Current Liabilities was $25.7 Mil.
Long-Term Debt was $35.2 Mil.
Net Income was 1.845 + -0.23 + 0.796 + 0.156 = $2.6 Mil.
Non Operating Income was 0.495 + 0.142 + 0.2 + 0.045 = $0.9 Mil.
Cash Flow from Operations was 2.577 + 5.162 + -0.557 + 2.409 = $9.6 Mil.
Accounts Receivable was $1.4 Mil.
Revenue was 29.11 + 29.424 + 28.826 + 28.348 = $115.7 Mil.
Gross Profit was 11.448 + 11.936 + 12.279 + 12.313 = $48.0 Mil.
Total Current Assets was $31.5 Mil.
Total Assets was $187.9 Mil.
Property, Plant and Equipment(Net PPE) was $131.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.2 Mil.
Selling, General & Admin. Expense(SGA) was $36.3 Mil.
Total Current Liabilities was $27.7 Mil.
Long-Term Debt was $28.2 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)
=(1.241 / 121.341) / (1.352 / 115.708)
=0.01022738 / 0.01168459
=0.8753

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)
=(13.134 / 115.708) / (13.439 / 121.341)
=0.41462993 / 0.4236985
=0.9786

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 - (29.962 + 131.843) / 183.615) / (1 - (31.456 + 131.53) / 187.934)
=0.11878115 / 0.13274873
=0.8948

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
=121.341 / 115.708
=1.0487

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))
=(7.218 / (7.218 + 131.53)) / (7.836 / (7.836 + 131.843))
=0.05202237 / 0.05610006
=0.9273

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)
=(39.802 / 121.341) / (36.299 / 115.708)
=0.32801774 / 0.3137121
=1.0456

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)
=((35.193 + 25.68) / 183.615) / ((28.199 + 27.72) / 187.934)
=0.3315252 / 0.29754595
=1.1142

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
=(2.567 - 0.882 - 9.591) / 183.615
=-0.0431

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 -2.86 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.452.12070.54710.88471.88251.18570.87220.62331.37350.9764
GMI 0.96961.08471.01431.02281.00021.08021.00991.00871.01471.0517
AQI 0.63171.47270.98770.65650.52361.22051.07171.14121.63740.8999
SGI 1.0471.50311.0490.89840.93771.22021.16761.01361.45611.1478
DEPI 1.14721.26370.45130.97521.43021.16880.95771.27370.96250.8617
SGAI 1.1851.16231.0541.01930.96110.95140.90220.98041.05871.0257
LVGI 0.60672.08070.92080.8840.50210.90690.90610.7582.51031.0965
TATA -0.0384-0.033-0.0783-0.13810.0305-0.0523-0.0575-0.037-0.0213-0.0352
M-score -2.25-1.27-3.26-3.42-1.55-2.17-2.64-2.81-2.07-2.60

Century Casinos Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.62330.8380.8960.66821.37350.95071.13120.84630.97640.8753
GMI 1.00870.98850.99431.00331.01471.08221.08611.07821.05180.9786
AQI 1.14121.04051.6031.62431.63741.68940.99330.94060.89990.8948
SGI 1.01361.01311.16451.29611.45611.60151.4361.27231.14781.0487
DEPI 1.27371.15771.09670.9380.96250.89410.87710.89360.86170.9273
SGAI 0.98040.98931.00841.03861.05871.05081.09131.0611.02571.0456
LVGI 0.7581.16562.08782.02662.51031.95881.39141.44441.09651.1142
TATA -0.037-0.0349-0.0301-0.0299-0.0213-0.0237-0.0347-0.0145-0.0352-0.0431
M-score -2.81-2.80-2.68-2.76-2.07-2.11-2.25-2.60-2.60-2.86
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