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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-2.55 (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 -2.55 suggests that the company is not a manipulator.

CVO' s 10-Year Beneish M-Score Range
Min: -4.34   Max: -1.62
Current: -2.55

-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 -2.69.


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 * 1.0237+0.528 * 1.111+0.404 * 0.8755+0.892 * 1.1122+0.115 * 1.0462
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0654+4.679 * -0.0375-0.327 * 1.0529
=-2.55

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was -38.637 + -15.834 + -54.741 + 23.983 = $-85 Mil.
Non Operating Income was -26.692 + 0.491 + -15.935 + 10.247 = $-32 Mil.
Cash Flow from Operations was -22.033 + -5.081 + 10.44 + 8.407 = $-8 Mil.
Accounts Receivable was $245 Mil.
Revenue was 406.54 + 418.614 + 451.818 + 451.274 = $1,728 Mil.
Gross Profit was 69.405 + 66.712 + 87.08 + 87.149 = $310 Mil.
Total Current Assets was $468 Mil.
Total Assets was $1,186 Mil.
Property, Plant and Equipment(Net PPE) was $267 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General & Admin. Expense(SGA) was $187 Mil.
Total Current Liabilities was $304 Mil.
Long-Term Debt was $1,194 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)
=(278.583 / 1922.183) / (244.67 / 1728.246)
=0.14493053 / 0.14157128
=1.0237

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)
=(74.962 / 1728.246) / (79.974 / 1922.183)
=0.17957282 / 0.16163654
=1.111

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 - (509.123 + 292.806) / 1202.612) / (1 - (468.107 + 266.72) / 1186.25)
=0.33317728 / 0.38054626
=0.8755

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
=1922.183 / 1728.246
=1.1122

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))
=(60.76 / (60.76 + 266.72)) / (63.121 / (63.121 + 292.806))
=0.18553805 / 0.17734254
=1.0462

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)
=(221.741 / 1922.183) / (187.125 / 1728.246)
=0.11535894 / 0.10827452
=1.0654

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)
=((1252.784 + 346.781) / 1202.612) / ((1194.422 + 304.047) / 1186.25)
=1.3300757 / 1.26319831
=1.0529

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
=(-85.229 - -31.889 - -8.267) / 1202.612
=-0.0375

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 -2.55 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 1.18290.98030.97691.11160.76441.21680.92661.04120.96321.0883
GMI 1.12431.03290.86970.97021.00261.0920.97811.0031.01611.1398
AQI 1.04861.04260.92371.50450.81391.06980.87771.00850.99410.8787
SGI 0.95570.99820.94761.35431.02540.8171.05841.05210.94150.989
DEPI 0.91910.97370.94571.05130.88621.0240.90750.98850.90651.0857
SGAI 1.00570.92790.91410.89611.03041.05570.95650.97280.91361.1156
LVGI 0.99781.09230.90380.96831.19390.97851.12260.99851.07981.0382
TATA -0.0319-0.01250.1247-0.0176-0.3174-0.0555-0.1667-0.069-0.1005-0.0704
M-score -2.42-2.54-2.02-1.92-4.31-2.63-3.38-2.71-3.05-2.74

Cenveo Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.95020.98351.02440.96320.98120.97120.97941.08831.02281.0237
GMI 1.00520.99831.00441.01611.03911.05991.091.13981.12871.111
AQI 1.03891.06741.07610.99410.99890.97580.9080.87870.86490.8755
SGI 0.99890.94340.89630.94150.94570.95730.97930.9891.05041.1122
DEPI 0.91590.94470.94410.90650.91520.90591.05211.08571.08381.0462
SGAI 0.94490.94340.94090.91360.95030.99051.06041.11561.09471.0654
LVGI 1.03271.03831.02851.07981.06511.0741.04941.03821.03951.0529
TATA -0.0836-0.0997-0.0804-0.1188-0.1236-0.1123-0.1019-0.0704-0.0619-0.0375
M-score -2.91-2.99-2.90-3.14-3.13-3.08-3.00-2.74-2.71-2.55
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