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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-2.91 (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 -2.91 suggests that the company is not a manipulator.

CVO' s 10-Year Beneish M-Score Range
Min: -4.34   Max: -1.62
Current: -2.91

-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 -2.71.


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 * 0.9361+0.528 * 1.0511+0.404 * 1.0319+0.892 * 0.9965+0.115 * 0.9647
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.939+4.679 * -0.0845-0.327 * 1.056
=-2.91

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $260 Mil.
Revenue was 460.857 + 475.105 + 498.935 + 480.576 = $1,915 Mil.
Gross Profit was 76.752 + 77.217 + 70.157 + 70.434 = $295 Mil.
Total Current Assets was $462 Mil.
Total Assets was $1,117 Mil.
Property, Plant and Equipment(Net PPE) was $271 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General & Admin. Expense(SGA) was $207 Mil.
Total Current Liabilities was $321 Mil.
Long-Term Debt was $1,248 Mil.
Net Income was -2.405 + -7.679 + -18.499 + -10.893 = $-39 Mil.
Non Operating Income was -0.473 + 0.216 + 0.023 + 5.733 = $5 Mil.
Cash Flow from Operations was 5.815 + -7.444 + 31.176 + 19.853 = $49 Mil.
Accounts Receivable was $279 Mil.
Revenue was 479.41 + 490.119 + 509.873 + 442.781 = $1,922 Mil.
Gross Profit was 79.974 + 74.962 + 80.334 + 75.425 = $311 Mil.
Total Current Assets was $509 Mil.
Total Assets was $1,203 Mil.
Property, Plant and Equipment(Net PPE) was $293 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $222 Mil.
Total Current Liabilities was $347 Mil.
Long-Term Debt was $1,253 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)
=(259.861 / 1915.473) / (278.583 / 1922.183)
=0.13566414 / 0.14493053
=0.9361

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)
=(77.217 / 1922.183) / (76.752 / 1915.473)
=0.16163654 / 0.15377925
=1.0511

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 - (462.008 + 270.942) / 1116.953) / (1 - (509.123 + 292.806) / 1202.612)
=0.34379513 / 0.33317728
=1.0319

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
=1915.473 / 1922.183
=0.9965

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))
=(62.67 / (62.67 + 292.806)) / (60.584 / (60.584 + 270.942))
=0.17629882 / 0.18274283
=0.9647

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)
=(207.494 / 1915.473) / (221.741 / 1922.183)
=0.1083252 / 0.11535894
=0.939

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)
=((1247.783 + 320.989) / 1116.953) / ((1252.784 + 346.781) / 1202.612)
=1.40451031 / 1.3300757
=1.056

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
=(-39.476 - 5.499 - 49.4) / 1116.953
=-0.0845

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 -2.91 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.98030.97691.11160.76441.21680.92661.04120.96321.08830.9132
GMI 1.03290.86970.97021.00261.0920.97811.0031.01611.13981.0828
AQI 1.04260.92371.50450.81391.06980.87771.00850.99410.87871.0291
SGI 0.99820.94761.35431.02540.8171.05841.05210.94150.9891.0963
DEPI 0.97370.94571.05130.88621.0240.90750.98850.90651.08570.8962
SGAI 0.92790.91410.89611.03041.05570.95650.97280.91361.11560.9628
LVGI 1.09230.90380.96831.19390.97851.12260.99851.07981.03821.0793
TATA -0.01250.1247-0.0176-0.3174-0.0555-0.1667-0.069-0.1005-0.0704-0.0754
M-score -2.54-2.02-1.92-4.31-2.63-3.38-2.71-3.05-2.74-2.80

Cenveo Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.97360.95850.96661.07451.02571.03730.95750.92490.95260.9361
GMI 1.03691.0541.08311.13161.12661.11721.12031.09061.05821.0511
AQI 0.99890.97580.9080.87870.86490.87550.93041.02911.04061.0319
SGI 0.95310.96990.99231.00171.04741.09771.12471.08241.04070.9965
DEPI 0.91130.90051.05211.08571.09331.05880.89120.89620.90750.9647
SGAI 0.94740.98341.05261.10751.0941.0731.0060.96980.96450.939
LVGI 1.06511.0741.04941.03821.03951.05291.08841.07931.0791.056
TATA -0.1236-0.1123-0.1019-0.0704-0.061-0.0367-0.0712-0.0746-0.0674-0.0845
M-score -3.13-3.08-3.01-2.74-2.71-2.54-2.75-2.80-2.79-2.91
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