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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-3.47 (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 -3.47 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: -3.47

-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 -2.63.


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 * 0.9782+0.528 * 0.9566+0.404 * 0.9444+0.892 * 0.9283+0.115 * 0.9836
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0121+4.679 * -0.1822-0.327 * 1.0202
=-3.47

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $223 Mil.
Revenue was 405.955 + 404.041 + 432.761 + 478.96 = $1,722 Mil.
Gross Profit was 70.222 + 68.563 + 70.85 + 78.088 = $288 Mil.
Total Current Assets was $379 Mil.
Total Assets was $912 Mil.
Property, Plant and Equipment(Net PPE) was $209 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $188 Mil.
Total Current Liabilities was $314 Mil.
Long-Term Debt was $987 Mil.
Net Income was 9.431 + 47.556 + 11.203 + -17.524 = $51 Mil.
Non Operating Income was 9.177 + 9.893 + 21.059 + 153.732 = $194 Mil.
Cash Flow from Operations was 7.543 + 15.359 + -17.236 + 17.349 = $23 Mil.
Accounts Receivable was $245 Mil.
Revenue was 419.783 + 460.857 + 475.105 + 498.935 = $1,855 Mil.
Gross Profit was 72.374 + 76.752 + 77.217 + 70.157 = $297 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 $51 Mil.
Selling, General & Admin. Expense(SGA) was $200 Mil.
Total Current Liabilities was $350 Mil.
Long-Term Debt was $1,238 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)
=(222.668 / 1721.717) / (245.203 / 1854.68)
=0.12932904 / 0.13220771
=0.9782

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)
=(296.5 / 1854.68) / (287.723 / 1721.717)
=0.15986585 / 0.16711399
=0.9566

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 - (378.677 + 208.71) / 912.237) / (1 - (487.898 + 219.563) / 1135.715)
=0.35610264 / 0.37707876
=0.9444

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
=1721.717 / 1854.68
=0.9283

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))
=(51.125 / (51.125 + 219.563)) / (49.601 / (49.601 + 208.71))
=0.18887058 / 0.19202047
=0.9836

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)
=(187.723 / 1721.717) / (199.811 / 1854.68)
=0.10903244 / 0.10773341
=1.0121

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)
=((986.955 + 314.291) / 912.237) / ((1237.988 + 349.971) / 1135.715)
=1.42643414 / 1.39820201
=1.0202

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
=(50.666 - 193.861 - 23.015) / 912.237
=-0.1822

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 -3.47 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 local exchange's currency.

Cenveo Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.97691.11160.76441.21680.92661.04120.96321.08830.91321.0084
GMI 0.86970.97021.00261.0920.97811.0031.01611.13981.08280.9079
AQI 0.92371.50450.81391.06980.87771.00850.99410.87871.02911.0753
SGI 0.94761.35431.02540.8171.05841.05210.94150.9891.09630.8937
DEPI 0.94571.05130.88621.0240.90750.98850.90651.08570.89620.9676
SGAI 0.91410.89611.03041.05570.95650.97280.91361.11560.96280.9607
LVGI 0.90380.96831.19390.97851.12260.99851.07981.03821.07931.0444
TATA 0.1267-0.0177-0.19880.0595-0.1667-0.069-0.10050.0963-0.0754-0.0602
M-score -2.01-1.92-3.76-2.09-3.38-2.71-3.05-1.96-2.80-2.88

Cenveo Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.03730.95750.92490.95260.93610.90150.95730.93840.90290.9782
GMI 1.11721.12031.09061.05821.05110.97570.91380.92590.92070.9566
AQI 0.87550.93041.02911.04061.03191.14571.07531.02031.05380.9444
SGI 1.09771.12471.08241.04070.99650.94630.94130.92680.90610.9283
DEPI 1.05880.89120.89620.90750.96470.96780.96761.00121.04650.9836
SGAI 1.0731.0060.96980.96450.9390.95240.96150.96610.99761.0121
LVGI 1.05291.08841.07931.0791.0561.04271.04441.06921.02211.0202
TATA 0.13070.0957-0.0754-0.0218-0.03810.0203-0.1073-0.1717-0.1441-0.1822
M-score -1.76-1.97-2.80-2.57-2.69-2.49-3.10-3.45-3.35-3.47
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