Switch to:
Cenveo Inc (NYSE:CVO)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

CVO' s 10-Year Beneish M-Score Range
Min: -4.34   Max: -1.62
Current: -2.79

-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 -2.72.


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 * 0.9479+0.528 * 1.054+0.404 * 1.0406+0.892 * 1.0458+0.115 * 0.9115
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.961+4.679 * -0.0674-0.327 * 1.079
=-2.79

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $271 Mil.
Revenue was 475.105 + 498.935 + 480.576 + 479.41 = $1,934 Mil.
Gross Profit was 77.217 + 70.157 + 70.434 + 79.974 = $298 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 $63 Mil.
Selling, General & Admin. Expense(SGA) was $214 Mil.
Total Current Liabilities was $337 Mil.
Long-Term Debt was $1,246 Mil.
Net Income was -7.679 + -18.499 + -10.893 + -38.637 = $-76 Mil.
Non Operating Income was 0.216 + 0.023 + 5.733 + -26.692 = $-21 Mil.
Cash Flow from Operations was -7.444 + 31.176 + 19.853 + -22.033 = $22 Mil.
Accounts Receivable was $274 Mil.
Revenue was 490.119 + 509.873 + 442.781 + 406.54 = $1,849 Mil.
Gross Profit was 74.962 + 80.334 + 75.425 + 69.405 = $300 Mil.
Total Current Assets was $511 Mil.
Total Assets was $1,207 Mil.
Property, Plant and Equipment(Net PPE) was $300 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General & Admin. Expense(SGA) was $213 Mil.
Total Current Liabilities was $366 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)
=(271.409 / 1934.026) / (273.783 / 1849.313)
=0.14033369 / 0.14804579
=0.9479

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)
=(70.157 / 1849.313) / (77.217 / 1934.026)
=0.16229054 / 0.15397001
=1.054

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 - (472.264 + 275.428) / 1135.507) / (1 - (510.796 + 299.915) / 1206.784)
=0.34153466 / 0.32820538
=1.0406

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
=1934.026 / 1849.313
=1.0458

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))
=(60.921 / (60.921 + 299.915)) / (62.615 / (62.615 + 275.428))
=0.16883293 / 0.18522791
=0.9115

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)
=(214.297 / 1934.026) / (213.234 / 1849.313)
=0.11080358 / 0.11530444
=0.961

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)
=((1246.274 + 337.135) / 1135.507) / ((1193.765 + 365.782) / 1206.784)
=1.39445111 / 1.2923166
=1.079

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
=(-75.708 - -20.72 - 21.552) / 1135.507
=-0.0674

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 -2.79 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.95461.01451.01231.01921.09811.00311.0070.93710.91320.9479
GMI 1.02221.04611.06791.08971.1331.12121.10331.10971.08281.054
AQI 1.00190.99890.97580.9080.87180.86490.87550.93041.02911.0406
SGI 0.92380.91470.91840.94111.0081.0711.13071.14911.09631.0458
DEPI 0.91260.93970.93451.07551.07841.06551.03150.88710.89620.9115
SGAI 0.9180.95961.0071.07761.11031.08921.05890.99530.96280.961
LVGI 1.07981.06511.0741.04941.03821.03951.05291.08841.07931.079
TATA -0.1193-0.1424-0.1313-0.1216-0.0894-0.0802-0.0559-0.0888-0.0746-0.0674
M-score -3.16-3.21-3.16-3.09-2.80-2.80-2.64-2.83-2.80-2.79
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK