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Consumer Portfolio Services Inc (NAS:CPSS)
Beneish M-Score
-2.67 (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.

Consumer Portfolio Services Inc has a M-score of -2.67 suggests that the company is not a manipulator.

CPSS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.02   Max: 96.59
Current: -2.67

-4.02
96.59

During the past 13 years, the highest Beneish M-Score of Consumer Portfolio Services Inc was 96.59. The lowest was -4.02. And the median was -2.58.


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 Consumer Portfolio Services 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 * 1.0259+0.528 * 1+0.404 * 1.0001+0.892 * 1.1538+0.115 * 0.8195
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9638+4.679 * -0.0763-0.327 * 0.9478
=-2.67

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $33.6 Mil.
Revenue was 85.206 + 82.828 + 79.273 + 79.143 = $326.5 Mil.
Gross Profit was 85.206 + 82.828 + 79.273 + 79.143 = $326.5 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,354.9 Mil.
Property, Plant and Equipment(Net PPE) was $1.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.7 Mil.
Selling, General & Admin. Expense(SGA) was $103.1 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $1,979.3 Mil.
Net Income was 7.272 + 7.214 + 8.968 + 8.843 = $32.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 52.804 + 60.526 + 49.518 + 49.146 = $212.0 Mil.
Accounts Receivable was $28.4 Mil.
Revenue was 74.673 + 72.816 + 70.633 + 64.811 = $282.9 Mil.
Gross Profit was 74.673 + 72.816 + 70.633 + 64.811 = $282.9 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,031.9 Mil.
Property, Plant and Equipment(Net PPE) was $1.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.5 Mil.
Selling, General & Admin. Expense(SGA) was $92.7 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $1,801.8 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)
=(33.611 / 326.45) / (28.395 / 282.933)
=0.10295911 / 0.10035945
=1.0259

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)
=(282.933 / 282.933) / (326.45 / 326.45)
=1 / 1
=1

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 - (0 + 1.792) / 2354.909) / (1 - (0 + 1.692) / 2031.904)
=0.99923904 / 0.99916728
=1.0001

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
=326.45 / 282.933
=1.1538

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))
=(0.508 / (0.508 + 1.692)) / (0.703 / (0.703 + 1.792))
=0.23090909 / 0.28176353
=0.8195

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)
=(103.095 / 326.45) / (92.712 / 282.933)
=0.3158064 / 0.32768182
=0.9638

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)
=((1979.332 + 0) / 2354.909) / ((1801.83 + 0) / 2031.904)
=0.84051316 / 0.88676926
=0.9478

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
=(32.297 - 0 - 211.994) / 2354.909
=-0.0763

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.

Consumer Portfolio Services Inc has a M-score of -2.67 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.

Consumer Portfolio Services Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.19231.028667.63671.18581.00270.36560.23430.2580.59731.0312
GMI 1111111111
AQI 1.00050.99980.99980.99940.99991.00061.00031.00020.99990.9998
SGI 1.30781.37470.83080.52850.65650.81621.79411.83321.26451.2243
DEPI 1.27830.71353.29050.86720.88090.83371.01521.17791.34860.9945
SGAI 0.76650.89851.64411.39431.31041.20740.6210.64280.93050.9284
LVGI 0.98480.91411.10591.00821.01530.82141.12171.08770.9780.9229
TATA -0.0254-0.0611-0.0922-0.1233-0.1025-0.02840.0332-0.0561-0.058-0.0713
M-score -2.07-2.3958.36-3.39-3.34-3.36-2.29-2.63-2.83-2.55

Consumer Portfolio Services Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.28710.41550.520.59730.75770.86821.00721.03121.02951.0259
GMI 1111111111
AQI 0.99990.99980.99980.99990.99980.99980.99980.999811.0001
SGI 1.72921.40221.31171.26451.25131.29851.27871.22431.17921.1538
DEPI 1.50941.70481.54621.34861.24791.23431.17170.99450.88870.8195
SGAI 0.70570.81580.87480.93040.96480.93620.92380.92850.9240.9638
LVGI 1.09391.07291.05280.9781.02431.0061.01430.92290.92310.9478
TATA -0.062-0.065-0.0593-0.058-0.0621-0.0614-0.0644-0.0713-0.0732-0.0763
M-score -2.70-2.87-2.85-2.83-2.74-2.59-2.50-2.55-2.61-2.67
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