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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-3.22 (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 -3.22 suggests that the company is not a manipulator.

CVO' s Beneish M-Score Range Over the Past 10 Years
Min: -4.16   Max: -1.26
Current: -3.22

-4.16
-1.26

During the past 13 years, the highest Beneish M-Score of Cenveo Inc was -1.26. The lowest was -4.16. 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 * 0.8725+0.528 * 0.9402+0.404 * 1.0203+0.892 * 0.9968+0.115 * 0.7781
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.966+4.679 * -0.1174-0.327 * 1.0692
=-3.22

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $236 Mil.
Revenue was 432.761 + 478.96 + 419.783 + 460.857 = $1,792 Mil.
Gross Profit was 70.85 + 78.088 + 72.374 + 76.752 = $298 Mil.
Total Current Assets was $399 Mil.
Total Assets was $931 Mil.
Property, Plant and Equipment(Net PPE) was $207 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $192 Mil.
Total Current Liabilities was $377 Mil.
Long-Term Debt was $1,011 Mil.
Net Income was 11.203 + -17.524 + -3.243 + -2.405 = $-12 Mil.
Non Operating Income was 21.059 + 153.732 + -48.858 + -51.029 = $75 Mil.
Cash Flow from Operations was -17.236 + 17.349 + 16.474 + 5.815 = $22 Mil.
Accounts Receivable was $271 Mil.
Revenue was 429.677 + 453.522 + 435.595 + 479.41 = $1,798 Mil.
Gross Profit was 70.894 + 64.664 + 65.636 + 79.974 = $281 Mil.
Total Current Assets was $472 Mil.
Total Assets was $1,136 Mil.
Property, Plant and Equipment(Net PPE) was $275 Mil.
Depreciation, Depletion and Amortization(DDA) was $49 Mil.
Selling, General & Admin. Expense(SGA) was $199 Mil.
Total Current Liabilities was $337 Mil.
Long-Term Debt was $1,246 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)
=(236.038 / 1792.361) / (271.409 / 1798.204)
=0.1316911 / 0.15093338
=0.8725

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)
=(78.088 / 1798.204) / (70.85 / 1792.361)
=0.15636046 / 0.16629686
=0.9402

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 - (399.358 + 207.192) / 930.96) / (1 - (472.264 + 275.428) / 1135.507)
=0.34846825 / 0.34153466
=1.0203

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
=1792.361 / 1798.204
=0.9968

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))
=(48.867 / (48.867 + 275.428)) / (49.761 / (49.761 + 207.192))
=0.15068687 / 0.19365798
=0.7781

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)
=(191.86 / 1792.361) / (199.251 / 1798.204)
=0.10704317 / 0.11080556
=0.966

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)
=((1011.446 + 376.568) / 930.96) / ((1246.274 + 337.135) / 1135.507)
=1.49094913 / 1.39445111
=1.0692

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
=(-11.969 - 74.904 - 22.402) / 930.96
=-0.1174

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 -3.22 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.07161.11160.76441.21680.92661.04120.93661.11920.81811.1256
GMI 0.98120.98081.00261.0920.97811.0031.01611.13981.08280.9079
AQI 0.92371.50450.81391.06980.87771.00851.00190.87181.13610.9741
SGI 0.86391.35431.02540.8171.05841.05210.94150.9891.09630.8937
DEPI 1.02981.08950.88621.0240.90750.98850.89721.09690.7551.1486
SGAI 0.86510.89611.03041.05570.95650.97280.91361.11560.96280.9607
LVGI 0.90380.96831.19390.97851.12260.99851.07981.03821.08411.0397
TATA 0.13-0.0177-0.33710.0595-0.1667-0.069-0.10050.0963-0.0769-0.0602
M-score -1.91-1.91-4.41-2.09-3.38-2.71-3.07-1.93-2.87-2.79

Cenveo Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.22881.11741.11691.06420.76660.91530.90840.83471.04490.8725
GMI 1.12221.11231.09541.09681.08011.04621.04240.97780.92110.9402
AQI 0.87180.86490.87550.93041.13611.04061.03191.14570.97411.0203
SGI 0.90080.96151.01941.01191.16991.08311.02691.0220.96270.9968
DEPI 1.28431.26641.21581.19330.73690.94270.97290.75670.98810.7781
SGAI 1.1241.10151.07031.00480.95170.95030.92740.94210.95970.966
LVGI 1.03821.03951.05291.08841.08411.0791.0561.04271.03971.0692
TATA -0.0868-0.0784-0.00970.0055-0.1205-0.1103-0.1306-0.1219-0.1077-0.1174
M-score -2.75-2.77-2.41-2.37-3.06-2.98-3.13-3.17-3.04-3.22
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