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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-3.37 (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 -3.37 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: -3.37

-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 -2.70.


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 * 0.8165+0.528 * 0.9358+0.404 * 1.0538+0.892 * 1.002+0.115 * 0.7289
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9988+4.679 * -0.1441-0.327 * 1.0221
=-3.37

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $213 Mil.
Revenue was 404.041 + 432.761 + 478.96 + 419.783 = $1,736 Mil.
Gross Profit was 68.563 + 70.85 + 78.088 + 72.374 = $290 Mil.
Total Current Assets was $366 Mil.
Total Assets was $901 Mil.
Property, Plant and Equipment(Net PPE) was $208 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $188 Mil.
Total Current Liabilities was $326 Mil.
Long-Term Debt was $967 Mil.
Net Income was 47.556 + 11.203 + -17.524 + -3.243 = $38 Mil.
Non Operating Income was 9.893 + 21.059 + 153.732 + -48.858 = $136 Mil.
Cash Flow from Operations was 15.359 + -17.236 + 17.349 + 16.474 = $32 Mil.
Accounts Receivable was $260 Mil.
Revenue was 413.359 + 429.677 + 453.522 + 435.595 = $1,732 Mil.
Gross Profit was 69.547 + 70.894 + 64.664 + 65.636 = $271 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 $44 Mil.
Selling, General & Admin. Expense(SGA) was $187 Mil.
Total Current Liabilities was $321 Mil.
Long-Term Debt was $1,248 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)
=(212.594 / 1735.545) / (259.861 / 1732.153)
=0.12249409 / 0.15002197
=0.8165

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)
=(270.741 / 1732.153) / (289.875 / 1735.545)
=0.15630317 / 0.16702246
=0.9358

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 - (366.022 + 208.4) / 900.754) / (1 - (462.008 + 270.942) / 1116.953)
=0.36228759 / 0.34379513
=1.0538

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
=1735.545 / 1732.153
=1.002

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))
=(44.108 / (44.108 + 270.942)) / (49.547 / (49.547 + 208.4))
=0.14000317 / 0.19208209
=0.7289

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)
=(187.557 / 1735.545) / (187.419 / 1732.153)
=0.10806807 / 0.10820003
=0.9988

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)
=((967.002 + 326.09) / 900.754) / ((1247.783 + 320.989) / 1116.953)
=1.4355662 / 1.40451031
=1.0221

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
=(37.992 - 135.826 - 31.946) / 900.754
=-0.1441

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 -3.37 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 0.97691.11160.76441.21680.98411.01470.93561.21110.8091.0172
GMI 0.86970.97021.00261.0920.98731.00671.01591.11461.0820.9173
AQI 0.92371.50450.81391.06980.87771.00851.00190.87181.13610.9741
SGI 0.94761.35431.02540.8170.99641.07950.94250.91391.10870.9889
DEPI 0.94571.05130.88621.0240.94260.96960.89571.28430.73690.9881
SGAI 0.91410.89611.03041.05570.97680.96860.91021.11480.94990.9618
LVGI 0.90380.96831.19390.97851.12260.99851.07981.03821.08411.0397
TATA 0.1267-0.0177-0.1988-0.0795-0.16670.0984-0.1005-0.0868-0.0711-0.0602
M-score -2.01-1.92-3.76-2.74-3.38-1.93-3.07-2.76-2.84-2.82

Cenveo Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.11741.11691.06420.76660.91530.93330.85781.07340.89630.8165
GMI 1.11231.09541.09681.08011.04621.04160.97610.91890.9380.9358
AQI 0.86490.87550.93041.13611.04061.03191.14570.97411.02031.0538
SGI 0.96151.01941.01191.16991.08310.99950.99450.93710.97031.002
DEPI 1.26641.21581.19330.73690.94271.07470.75670.98810.77810.7289
SGAI 1.10151.07031.00480.95170.95030.92790.94250.960.96630.9988
LVGI 1.03951.05291.08841.08411.0791.0561.04271.03971.06921.0221
TATA -0.0784-0.00970.0055-0.1205-0.1103-0.1306-0.122-0.1077-0.1174-0.1441
M-score -2.77-2.41-2.37-3.06-2.98-3.12-3.17-3.03-3.22-3.37
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