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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-2.72 (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.

Cenveo Inc has a M-score of -2.72 suggests that the company is not a manipulator.

CVO' s 10-Year Beneish M-Score Range
Min: -4.34   Max: -1.62
Current: -2.72

-4.34
-1.62

During the past 13 years, the highest Beneish M-Score of Cenveo Inc was -1.62. The lowest was -4.34. And the median was -2.70.


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 Cenveo 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 * 0.9982+0.528 * 1.1168+0.404 * 0.8649+0.892 * 1.0763+0.115 * 1.0655
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0852+4.679 * -0.0619-0.327 * 1.0395
=-2.72

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $274 Mil.
Revenue was 490.119 + 509.873 + 442.781 + 415.702 = $1,858 Mil.
Gross Profit was 74.962 + 80.334 + 75.425 + 72.091 = $303 Mil.
Total Current Assets was $511 Mil.
Total Assets was $1,207 Mil.
Property, Plant and Equipment(Net PPE) was $300 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General & Admin. Expense(SGA) was $213 Mil.
Total Current Liabilities was $366 Mil.
Long-Term Debt was $1,194 Mil.
Net Income was -15.834 + -54.741 + 23.983 + -18.883 = $-65 Mil.
Non Operating Income was 0.491 + -15.935 + 10.247 + -5.429 = $-11 Mil.
Cash Flow from Operations was -5.081 + 10.44 + 8.407 + 6.028 = $20 Mil.
Accounts Receivable was $255 Mil.
Revenue was 418.614 + 437.7 + 437.168 + 433.218 = $1,727 Mil.
Gross Profit was 66.712 + 83.672 + 83.388 + 80.418 = $314 Mil.
Total Current Assets was $464 Mil.
Total Assets was $1,193 Mil.
Property, Plant and Equipment(Net PPE) was $276 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General & Admin. Expense(SGA) was $183 Mil.
Total Current Liabilities was $305 Mil.
Long-Term Debt was $1,178 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)
=(273.783 / 1858.475) / (254.84 / 1726.7)
=0.14731594 / 0.14758788
=0.9982

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)
=(80.334 / 1726.7) / (74.962 / 1858.475)
=0.18195981 / 0.16293574
=1.1168

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 - (510.796 + 299.915) / 1206.784) / (1 - (464.473 + 276.013) / 1193.322)
=0.32820538 / 0.37947511
=0.8649

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
=1858.475 / 1726.7
=1.0763

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))
=(60.546 / (60.546 + 276.013)) / (60.921 / (60.921 + 299.915))
=0.17989714 / 0.16883293
=1.0655

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)
=(213.496 / 1858.475) / (182.789 / 1726.7)
=0.11487698 / 0.10586031
=1.0852

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)
=((1193.765 + 365.782) / 1206.784) / ((1178.328 + 305.177) / 1193.322)
=1.2923166 / 1.24317242
=1.0395

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
=(-65.475 - -10.626 - 19.794) / 1206.784
=-0.0619

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.

Cenveo Inc has a M-score of -2.72 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.

Cenveo Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.18290.98030.97691.11160.76441.21680.98410.98030.96851.0823
GMI 1.12431.03290.86970.97021.00261.0920.98730.99371.02921.1253
AQI 1.04861.04260.92371.50450.81391.06980.87771.00851.00190.8718
SGI 0.95570.99820.94761.35431.02540.8170.99641.11740.91051.0227
DEPI 0.91910.97370.94571.05130.88621.0240.94260.95170.91261.0784
SGAI 1.00570.92790.91410.89611.03041.05570.97680.95260.92551.1012
LVGI 0.99781.09230.90380.96831.19390.97851.12260.99851.07981.0382
TATA -0.0319-0.01250.1247-0.0176-0.3174-0.0795-0.1667-0.069-0.1193-0.0704
M-score -2.42-2.54-2.02-1.92-4.31-2.74-3.38-2.71-3.15-2.72

Cenveo Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.98030.87060.88020.90020.95461.01451.00691.01381.09250.9982
GMI 0.99370.99620.98760.99891.02221.04611.06421.08571.12841.1168
AQI 1.00851.03891.06741.07611.00190.99890.97580.9080.87180.8649
SGI 1.11741.09021.0541.020.92380.91470.92330.94611.01321.0763
DEPI 0.95170.86480.87720.86720.91260.93970.92881.07551.07841.0655
SGAI 0.95260.9160.9050.89680.9180.95961.00311.07331.1061.0852
LVGI 0.99851.03271.03831.02851.07981.06511.0741.04941.03821.0395
TATA -0.054-0.0678-0.0825-0.0633-0.1193-0.1424-0.1313-0.12-0.0704-0.0619
M-score -2.64-2.83-2.92-2.83-3.16-3.21-3.17-3.09-2.72-2.72
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