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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-3.04 (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 -3.04 suggests that the company is not a manipulator.

CVO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.98   Max: -1.65
Current: -3.04

-3.98
-1.65

During the past 13 years, the highest Beneish M-Score of Cenveo Inc was -1.65. The lowest was -3.98. And the median was -2.75.


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 * 1.019+0.528 * 0.9249+0.404 * 0.9741+0.892 * 0.9871+0.115 * 0.9881
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9608+4.679 * -0.108-0.327 * 1.0397
=-3.04

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $254 Mil.
Revenue was 478.96 + 419.783 + 460.857 + 475.105 = $1,835 Mil.
Gross Profit was 78.088 + 72.374 + 76.752 + 77.217 = $304 Mil.
Total Current Assets was $477 Mil.
Total Assets was $1,080 Mil.
Property, Plant and Equipment(Net PPE) was $211 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $197 Mil.
Total Current Liabilities was $346 Mil.
Long-Term Debt was $1,203 Mil.
Net Income was -17.524 + -3.243 + -2.405 + -7.679 = $-31 Mil.
Non Operating Income was 153.732 + -48.858 + -51.029 + -0.216 = $54 Mil.
Cash Flow from Operations was 17.349 + 16.474 + 5.815 + -7.444 = $32 Mil.
Accounts Receivable was $253 Mil.
Revenue was 453.522 + 435.595 + 479.41 + 490.119 = $1,859 Mil.
Gross Profit was 64.664 + 65.636 + 79.974 + 74.962 = $285 Mil.
Total Current Assets was $484 Mil.
Total Assets was $1,136 Mil.
Property, Plant and Equipment(Net PPE) was $228 Mil.
Depreciation, Depletion and Amortization(DDA) was $53 Mil.
Selling, General & Admin. Expense(SGA) was $208 Mil.
Total Current Liabilities was $361 Mil.
Long-Term Debt was $1,207 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)
=(254.042 / 1834.705) / (252.555 / 1858.646)
=0.13846477 / 0.13588117
=1.019

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)
=(72.374 / 1858.646) / (78.088 / 1834.705)
=0.1534644 / 0.16592913
=0.9249

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 - (476.628 + 210.578) / 1079.915) / (1 - (483.915 + 227.823) / 1135.721)
=0.36364806 / 0.37331616
=0.9741

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
=1834.705 / 1858.646
=0.9871

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))
=(52.97 / (52.97 + 227.823)) / (49.689 / (49.689 + 210.578))
=0.1886443 / 0.19091548
=0.9881

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)
=(196.882 / 1834.705) / (207.588 / 1858.646)
=0.10730989 / 0.11168776
=0.9608

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)
=((1203.25 + 346.425) / 1079.915) / ((1206.508 + 360.947) / 1135.721)
=1.4349972 / 1.3801409
=1.0397

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
=(-30.851 - 53.629 - 32.194) / 1079.915
=-0.108

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 -3.04 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.98281.22881.11741.11691.06420.76660.89270.88580.81371.019
GMI 1.07451.12221.11231.09541.09681.08011.0491.04530.98120.9249
AQI 0.9080.87180.86490.87550.93041.13611.04061.03191.14570.9741
SGI 0.9760.90080.96151.01941.01191.16991.11051.05311.04830.9871
DEPI 1.05511.28431.26641.21581.19330.73690.90030.97290.75670.9881
SGAI 1.06031.1241.10151.07031.00480.95170.95060.92830.94310.9608
LVGI 1.04941.03821.03951.05291.08841.08411.0791.0561.04271.0397
TATA -0.1034-0.0868-0.0784-0.00970.0055-0.1205-0.1107-0.1309-0.1223-0.108
M-score -3.02-2.75-2.77-2.41-2.37-3.06-2.98-3.12-3.16-3.04
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