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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

CVO' s 10-Year Beneish M-Score Range
Min: -4.44   Max: -1.32
Current: -2.75

-4.44
-1.32

During the past 13 years, the highest Beneish M-Score of Cenveo Inc was -1.32. The lowest was -4.44. And the median was -2.75.


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 * 0.9449+0.528 * 1.1133+0.404 * 0.9304+0.892 * 1.1397+0.115 * 0.8912
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9986+4.679 * -0.0705-0.327 * 1.0884
=-2.75

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $287 Mil.
Revenue was 480.576 + 479.41 + 490.119 + 509.873 = $1,960 Mil.
Gross Profit was 70.434 + 79.974 + 74.962 + 80.334 = $306 Mil.
Total Current Assets was $520 Mil.
Total Assets was $1,206 Mil.
Property, Plant and Equipment(Net PPE) was $289 Mil.
Depreciation, Depletion and Amortization(DDA) was $65 Mil.
Selling, General & Admin. Expense(SGA) was $222 Mil.
Total Current Liabilities was $373 Mil.
Long-Term Debt was $1,245 Mil.
Net Income was -10.893 + -38.637 + -15.834 + -57.677 = $-123 Mil.
Non Operating Income was 5.733 + -26.692 + 0.491 + -20.762 = $-41 Mil.
Cash Flow from Operations was 19.853 + -22.033 + -5.081 + 10.44 = $3 Mil.
Accounts Receivable was $267 Mil.
Revenue was 442.781 + 406.54 + 418.614 + 451.818 = $1,720 Mil.
Gross Profit was 75.425 + 69.405 + 66.712 + 87.08 = $299 Mil.
Total Current Assets was $493 Mil.
Total Assets was $1,239 Mil.
Property, Plant and Equipment(Net PPE) was $307 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General & Admin. Expense(SGA) was $195 Mil.
Total Current Liabilities was $350 Mil.
Long-Term Debt was $1,176 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)
=(287.45 / 1959.978) / (266.932 / 1719.753)
=0.14665981 / 0.15521531
=0.9449

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)
=(79.974 / 1719.753) / (70.434 / 1959.978)
=0.17364238 / 0.15597318
=1.1133

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 - (520.041 + 289.283) / 1206.366) / (1 - (493.376 + 307.006) / 1238.506)
=0.32912234 / 0.35375202
=0.9304

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
=1959.978 / 1719.753
=1.1397

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))
=(59.75 / (59.75 + 307.006)) / (64.708 / (64.708 + 289.283))
=0.16291485 / 0.18279561
=0.8912

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)
=(221.713 / 1959.978) / (194.806 / 1719.753)
=0.11312015 / 0.11327557
=0.9986

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)
=((1245.086 + 372.628) / 1206.366) / ((1175.657 + 350.253) / 1238.506)
=1.3409811 / 1.23205701
=1.0884

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
=(-123.041 - -41.23 - 3.179) / 1206.366
=-0.0705

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 -2.75 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 1.08430.97491.07721.10590.76441.21680.92661.04120.96321.0883
GMI 0.99831.01990.98120.98081.00261.0920.97811.0031.01611.1398
AQI 1.04861.04260.92181.50760.81391.06980.87771.00850.99410.8787
SGI 1.04261.00370.86391.35431.02540.8171.05841.05210.94150.989
DEPI 0.8710.91041.02981.08950.88621.0240.90750.98850.90651.0857
SGAI 1.03790.950.86510.89611.03041.05570.95650.97280.91361.1156
LVGI 0.99781.09230.90160.97061.19390.97851.12260.99851.07981.0382
TATA -0.0319-0.08360.1277-0.0176-0.3371-0.0555-0.1667-0.069-0.1005-0.0704
M-score -2.52-2.90-1.92-1.92-4.41-2.63-3.38-2.71-3.05-2.74

Cenveo Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.98351.02440.96320.98120.97120.97941.08831.02281.02370.9449
GMI 0.99831.00441.01611.03911.05991.091.13981.12871.1111.1133
AQI 1.06741.07610.99410.99890.97580.9080.87870.86490.87550.9304
SGI 0.94340.89630.94150.94570.95730.97930.9891.05041.11221.1397
DEPI 0.94470.94410.90650.91520.90591.05211.08571.08381.04620.8912
SGAI 0.94340.94090.91360.95030.99051.06041.11561.09471.06540.9986
LVGI 1.03831.02851.07981.06511.0741.04941.03821.03951.05291.0884
TATA -0.0997-0.0804-0.1188-0.1236-0.1123-0.1034-0.0704-0.0619-0.0375-0.0705
M-score -2.99-2.90-3.14-3.13-3.08-3.01-2.74-2.71-2.55-2.75
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