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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-0.12 (As of Today)

Warning Sign:

Beneish M-Score -0.12 higher than -2.22, which implies that it might have manipulated its financial results.

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 -0.12 signals that the company is a manipulator.

CNTY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.43   Max: 26.06
Current: -0.12

-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 -2.57.


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 * 3.7912+0.528 * 0.8394+0.404 * 0.9342+0.892 * 1.1256+0.115 * 0.9941
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.975+4.679 * -0.0462-0.327 * 0.9845
=-0.12

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 2.728 + 6.597 + 1.845 + -0.23 = $10.9 Mil.
Non Operating Income was 0.24 + 0.407 + 0.495 + 0.142 = $1.3 Mil.
Cash Flow from Operations was 6.04 + 4.67 + 2.577 + 5.162 = $18.4 Mil.
Accounts Receivable was $0.9 Mil.
Revenue was 28.123 + 31.555 + 29.11 + 29.424 = $118.2 Mil.
Gross Profit was 11.817 + 13.022 + 11.448 + 11.936 = $48.2 Mil.
Total Current Assets was $32.4 Mil.
Total Assets was $188.5 Mil.
Property, Plant and Equipment(Net PPE) was $132.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.7 Mil.
Selling, General & Admin. Expense(SGA) was $38.5 Mil.
Total Current Liabilities was $27.3 Mil.
Long-Term Debt was $32.1 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)
=(3.892 / 133.064) / (0.912 / 118.212)
=0.02924908 / 0.00771495
=3.7912

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)
=(20.696 / 118.212) / (17.395 / 133.064)
=0.40793659 / 0.48596164
=0.8394

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 - (35.651 + 132.77) / 190.441) / (1 - (32.37 + 132.797) / 188.497)
=0.11562636 / 0.12376855
=0.9342

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
=133.064 / 118.212
=1.1256

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))
=(7.748 / (7.748 + 132.797)) / (7.795 / (7.795 + 132.77))
=0.05512825 / 0.05545477
=0.9941

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)
=(42.212 / 133.064) / (38.464 / 118.212)
=0.31723081 / 0.32538152
=0.975

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)
=((34.286 + 24.865) / 190.441) / ((32.126 + 27.344) / 188.497)
=0.31060013 / 0.31549574
=0.9845

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
=(10.94 - 1.284 - 18.449) / 190.441
=-0.0462

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 -0.12 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

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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.8960.66821.37350.95071.13120.84630.97640.87531.81373.7912
GMI 0.99431.00331.01471.08221.08611.07821.05180.97860.88460.8394
AQI 1.6031.62431.63741.68940.99330.94060.89990.89480.90190.9342
SGI 1.16451.29611.45611.60151.4361.27231.14781.04871.07351.1256
DEPI 1.09670.9380.96250.89410.87710.89360.86170.92730.97140.9941
SGAI 1.00841.03861.05871.05081.09131.0611.02571.04560.96510.975
LVGI 2.08782.02662.51031.95881.39141.44441.09651.11421.07580.9845
TATA -0.0301-0.0299-0.0213-0.0237-0.0347-0.0145-0.0352-0.0431-0.021-0.0462
M-score -2.68-2.76-2.07-2.11-2.25-2.60-2.60-2.86-1.89-0.12
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