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Consumer Portfolio Services Inc (NAS:CPSS)
Beneish M-Score
-2.61 (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 -2.61 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: -2.61

-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 -2.57.


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 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 * 1.0295+0.528 * 1+0.404 * 1+0.892 * 1.1792+0.115 * 0.8887
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.924+4.679 * -0.0732-0.327 * 0.9231
=-2.61

* 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 $30.6 Mil.
Revenue was 82.828 + 79.273 + 79.143 + 74.673 = $315.9 Mil.
Gross Profit was 82.828 + 79.273 + 79.143 + 74.673 = $315.9 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $2,250.0 Mil.
Property, Plant and Equipment(Net PPE) was $1.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.7 Mil.
Selling, General & Admin. Expense(SGA) was $98.8 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $1,880.1 Mil.
Net Income was 7.214 + 8.968 + 8.843 + 8.537 = $33.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 60.526 + 49.518 + 49.146 + 39.075 = $198.3 Mil.
Accounts Receivable was $25.2 Mil.
Revenue was 72.816 + 70.633 + 64.811 + 59.652 = $267.9 Mil.
Gross Profit was 72.816 + 70.633 + 64.811 + 59.652 = $267.9 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $1,905.5 Mil.
Property, Plant and Equipment(Net PPE) was $1.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.5 Mil.
Selling, General & Admin. Expense(SGA) was $90.7 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $1,724.8 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)
=(30.64 / 315.917) / (25.239 / 267.912)
=0.0969875 / 0.09420631
=1.0295

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)
=(79.273 / 267.912) / (82.828 / 315.917)
=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 + 1.661) / 2249.958) / (1 - (0 + 1.417) / 1905.453)
=0.99926176 / 0.99925634
=1

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
=315.917 / 267.912
=1.1792

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))
=(0.482 / (0.482 + 1.417)) / (0.664 / (0.664 + 1.661))
=0.2538178 / 0.2855914
=0.8887

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)
=(98.805 / 315.917) / (90.685 / 267.912)
=0.3127562 / 0.33848801
=0.924

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)
=((1880.08 + 0) / 2249.958) / ((1724.805 + 0) / 1905.453)
=0.83560671 / 0.9051942
=0.9231

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
=(33.562 - 0 - 198.265) / 2249.958
=-0.0732

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 -2.61 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 1.19231.028667.63671.18581.01160.36240.23430.2580.59731.0312
GMI 1111111111
AQI 1.00050.99980.99980.99940.99991.00061.00031.00020.99990.9998
SGI 1.30781.37470.83080.52850.65070.82341.79411.83321.26451.2243
DEPI 1.27830.71353.29050.86720.88090.83371.01521.17791.34860.9945
SGAI 0.76650.89851.64411.39431.3221.19680.6210.64280.93050.9284
LVGI 0.98480.91411.10591.00821.01530.82141.12171.08770.9780.9229
TATA -0.0254-0.0611-0.0922-0.128-0.0969-0.02840.0332-0.0561-0.058-0.0713
M-score -2.07-2.3958.36-3.41-3.31-3.35-2.29-2.63-2.83-2.55

Consumer Portfolio Services Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.2580.28710.41550.520.59730.75770.86821.00721.03121.0295
GMI 1111111111
AQI 1.00020.99990.99980.99980.99990.99980.99980.99980.99981
SGI 1.83321.72921.40221.31171.26451.25131.29851.27871.22431.1792
DEPI 1.17791.50941.70481.54621.34861.24791.23431.17170.99450.8887
SGAI 0.64280.70570.81580.87480.93040.96480.93620.92380.92850.924
LVGI 1.08771.09391.07291.05280.9781.02431.0061.01430.92290.9231
TATA -0.0561-0.062-0.065-0.0593-0.058-0.0621-0.0614-0.0644-0.0713-0.0732
M-score -2.63-2.70-2.87-2.85-2.83-2.74-2.59-2.50-2.55-2.61
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