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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-1.86 (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 -1.86 signals that the company is a manipulator.

CNTY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.68   Max: 26.32
Current: -1.86

-3.68
26.32

During the past 13 years, the highest Beneish M-Score of Century Casinos Inc was 26.32. 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 * 1.8802+0.528 * 0.8235+0.404 * 0.9807+0.892 * 1.1254+0.115 * 0.9871
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9887+4.679 * -0.0529-0.327 * 0.8699
=-1.86

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $2.6 Mil.
Revenue was 32.53 + 32.628 + 33.526 + 37.875 = $136.6 Mil.
Gross Profit was 16.462 + 15.71 + 17.395 + 20.696 = $70.3 Mil.
Total Current Assets was $34.9 Mil.
Total Assets was $193.5 Mil.
Property, Plant and Equipment(Net PPE) was $136.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.2 Mil.
Selling, General & Admin. Expense(SGA) was $44.3 Mil.
Total Current Liabilities was $22.0 Mil.
Long-Term Debt was $33.8 Mil.
Net Income was 1.894 + 0.737 + 2.728 + 6.597 = $12.0 Mil.
Non Operating Income was 0.198 + 0.984 + 0.24 + 0.407 = $1.8 Mil.
Cash Flow from Operations was 3.263 + 6.387 + 6.04 + 4.67 = $20.4 Mil.
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.



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)
=(2.626 / 136.559) / (1.241 / 121.341)
=0.01922978 / 0.01022738
=1.8802

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)
=(15.71 / 121.341) / (16.462 / 136.559)
=0.4236985 / 0.51452486
=0.8235

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 - (34.894 + 136.053) / 193.485) / (1 - (29.962 + 131.843) / 183.615)
=0.11648448 / 0.11878115
=0.9807

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
=136.559 / 121.341
=1.1254

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))
=(7.836 / (7.836 + 131.843)) / (8.198 / (8.198 + 136.053))
=0.05610006 / 0.0568315
=0.9871

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)
=(44.288 / 136.559) / (39.802 / 121.341)
=0.32431403 / 0.32801774
=0.9887

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)
=((33.792 + 22.01) / 193.485) / ((35.193 + 25.68) / 183.615)
=0.28840479 / 0.3315252
=0.8699

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
=(11.956 - 1.829 - 20.36) / 193.485
=-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 -1.86 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 1.47270.98770.65650.52361.23711.05731.14121.63740.89990.9262
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 2.08070.92080.8840.50210.89880.91430.7582.51031.09650.9134
TATA -0.0375-0.0459-0.16910.0305-0.0522-0.0575-0.037-0.0213-0.0352-0.0529
M-score -1.29-2.75-3.43-1.55-2.16-2.65-2.81-2.06-2.61-1.92

Century Casinos Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.37350.95071.13120.84630.97640.87531.81373.79121.86621.8802
GMI 1.02641.08541.08351.07141.03980.97120.88010.8370.82310.8235
AQI 1.63741.68940.99330.94060.89990.89480.90190.93420.92620.9807
SGI 1.45611.60151.4361.27231.14781.04871.07351.12561.11991.1254
DEPI 0.96250.89410.87710.89360.86170.92730.97140.99410.95970.9871
SGAI 1.04221.04751.09651.07121.04191.05620.97120.97850.98060.9887
LVGI 2.51031.95881.39141.44441.09651.11421.07580.98450.91340.8699
TATA -0.0213-0.0237-0.0347-0.0145-0.0352-0.0431-0.021-0.0462-0.0529-0.0529
M-score -2.06-2.11-2.25-2.60-2.61-2.87-1.89-0.12-1.92-1.86
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