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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

CVO' s Beneish M-Score Range Over the Past 10 Years
Min: -4.34   Max: -1.29
Current: -2.71

-4.34
-1.29

During the past 13 years, the highest Beneish M-Score of Cenveo Inc was -1.29. 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 * 0.818+0.528 * 0.9908+0.404 * 1.1457+0.892 * 1.0428+0.115 * 0.7736
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9559+4.679 * -0.0258-0.327 * 1.0427
=-2.71

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $245 Mil.
Revenue was 419.783 + 460.857 + 475.105 + 641.247 = $1,997 Mil.
Gross Profit was 72.374 + 76.752 + 77.217 + 90.364 = $317 Mil.
Total Current Assets was $488 Mil.
Total Assets was $1,136 Mil.
Property, Plant and Equipment(Net PPE) was $220 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $216 Mil.
Total Current Liabilities was $350 Mil.
Long-Term Debt was $1,238 Mil.
Net Income was -3.243 + -2.405 + -7.679 + -18.499 = $-32 Mil.
Non Operating Income was -1.332 + 0.473 + -0.216 + -47.511 = $-49 Mil.
Cash Flow from Operations was 16.474 + 5.815 + -7.444 + 31.176 = $46 Mil.
Accounts Receivable was $287 Mil.
Revenue was 435.595 + 479.41 + 490.119 + 509.873 = $1,915 Mil.
Gross Profit was 65.636 + 79.974 + 74.962 + 80.334 = $301 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 $57 Mil.
Selling, General & Admin. Expense(SGA) was $217 Mil.
Total Current Liabilities was $373 Mil.
Long-Term Debt was $1,245 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)
=(245.203 / 1996.992) / (287.45 / 1914.997)
=0.12278617 / 0.15010467
=0.818

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)
=(76.752 / 1914.997) / (72.374 / 1996.992)
=0.15713132 / 0.15859202
=0.9908

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 - (487.898 + 219.563) / 1135.715) / (1 - (520.041 + 289.283) / 1206.366)
=0.37707876 / 0.32912234
=1.1457

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
=1996.992 / 1914.997
=1.0428

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))
=(56.757 / (56.757 + 289.283)) / (59.076 / (59.076 + 219.563))
=0.16401861 / 0.21201626
=0.7736

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)
=(216.039 / 1996.992) / (216.73 / 1914.997)
=0.10818221 / 0.11317511
=0.9559

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)
=((1237.988 + 349.971) / 1135.715) / ((1245.086 + 372.628) / 1206.366)
=1.39820201 / 1.3409811
=1.0427

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
=(-31.826 - -48.586 - 46.021) / 1135.715
=-0.0258

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 -2.71 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 0.98030.97691.11160.76441.21680.98410.98030.96851.08230.9132
GMI 1.03290.86970.97021.00261.0920.98730.99371.02921.12531.0828
AQI 1.04260.92371.50450.81391.06980.87771.00851.00190.87181.0291
SGI 0.99820.94761.35431.02540.8170.99641.11740.91051.02271.0963
DEPI 0.97370.94571.05130.88621.0240.94260.95170.91261.07840.8962
SGAI 0.92790.91410.89611.03041.05570.97680.95260.92551.10120.9628
LVGI 1.09230.90380.96831.19390.97851.12260.99851.07981.03821.0793
TATA -0.01250.1247-0.0176-0.3174-0.0795-0.1667-0.069-0.1193-0.0894-0.0754
M-score -2.54-2.02-1.92-4.31-2.74-3.38-2.71-3.15-2.81-2.80

Cenveo Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.01231.01921.09811.00311.0070.95910.86970.90250.89080.818
GMI 1.06791.08971.1331.12121.10331.10151.08051.05261.04960.9908
AQI 0.97580.9080.87180.86490.87550.93041.02911.04061.03191.1457
SGI 0.91840.94111.0081.0711.13071.12271.15111.09841.04711.0428
DEPI 0.93451.07551.07841.06551.03150.98860.89620.91150.97040.7736
SGAI 1.0071.07761.11031.08921.05890.99580.96440.96290.9420.9559
LVGI 1.0741.04941.03821.03951.05291.08841.07931.0791.0561.0427
TATA -0.1313-0.1216-0.0894-0.081-0.1011-0.1295-0.076-0.0676-0.0377-0.0258
M-score -3.16-3.09-2.80-2.80-2.85-3.02-2.80-2.78-2.69-2.71
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