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Cenveo Inc (NYSE:CVO)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

CVO' s 10-Year Beneish M-Score Range
Min: -4.34   Max: -1.62
Current: -2.75

-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 -2.70.


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 * 0.9371+0.528 * 1.1097+0.404 * 0.9304+0.892 * 1.1491+0.115 * 0.8871
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9953+4.679 * -0.0705-0.327 * 1.0884
=-2.75

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $287 Mil.
Revenue was 480.576 + 479.41 + 490.119 + 509.873 = $1,960 Mil.
Gross Profit was 70.434 + 79.974 + 74.962 + 80.334 = $306 Mil.
Total Current Assets was $520 Mil.
Total Assets was $1,206 Mil.
Property, Plant and Equipment(Net PPE) was $289 Mil.
Depreciation, Depletion and Amortization(DDA) was $65 Mil.
Selling, General & Admin. Expense(SGA) was $222 Mil.
Total Current Liabilities was $373 Mil.
Long-Term Debt was $1,245 Mil.
Net Income was -10.893 + -38.637 + -15.834 + -57.677 = $-123 Mil.
Non Operating Income was 5.733 + -26.692 + 0.491 + -20.762 = $-41 Mil.
Cash Flow from Operations was 19.853 + -22.033 + -5.081 + 10.44 = $3 Mil.
Accounts Receivable was $267 Mil.
Revenue was 442.781 + 406.54 + 418.614 + 437.7 = $1,706 Mil.
Gross Profit was 75.425 + 69.405 + 66.712 + 83.672 = $295 Mil.
Total Current Assets was $493 Mil.
Total Assets was $1,239 Mil.
Property, Plant and Equipment(Net PPE) was $307 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $194 Mil.
Total Current Liabilities was $350 Mil.
Long-Term Debt was $1,176 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)
=(287.45 / 1959.978) / (266.932 / 1705.635)
=0.14665981 / 0.15650007
=0.9371

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)
=(79.974 / 1705.635) / (70.434 / 1959.978)
=0.17308158 / 0.15597318
=1.1097

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 - (520.041 + 289.283) / 1206.366) / (1 - (493.376 + 307.006) / 1238.506)
=0.32912234 / 0.35375202
=0.9304

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
=1959.978 / 1705.635
=1.1491

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))
=(59.415 / (59.415 + 307.006)) / (64.708 / (64.708 + 289.283))
=0.16214955 / 0.18279561
=0.8871

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)
=(221.713 / 1959.978) / (193.845 / 1705.635)
=0.11312015 / 0.11364976
=0.9953

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)
=((1245.086 + 372.628) / 1206.366) / ((1175.657 + 350.253) / 1238.506)
=1.3409811 / 1.23205701
=1.0884

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
=(-123.041 - -41.23 - 3.179) / 1206.366
=-0.0705

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 -2.75 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.18290.98030.97691.11160.76441.21680.98410.98030.96851.0823
GMI 1.12431.03290.86970.97021.00261.0920.98730.99371.02921.1253
AQI 1.04861.04260.92371.50450.81391.06980.87771.00851.00190.8718
SGI 0.95570.99820.94761.35431.02540.8170.99641.11740.91051.0227
DEPI 0.91910.97370.94571.05130.88621.0240.94260.95170.91261.0784
SGAI 1.00570.92790.91410.89611.03041.05570.97680.95260.92551.1012
LVGI 0.99781.09230.90380.96831.19390.97851.12260.99851.07981.0382
TATA -0.0319-0.01250.1247-0.0176-0.3174-0.0795-0.1667-0.069-0.1193-0.0704
M-score -2.42-2.54-2.02-1.92-4.31-2.74-3.38-2.71-3.15-2.72

Cenveo Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.88020.90020.95461.01451.01231.01921.09811.00311.0070.9371
GMI 0.98760.99891.02221.04611.06791.08971.1331.12121.10331.1097
AQI 1.06741.07611.00190.99890.97580.9080.87180.86490.87550.9304
SGI 1.0541.020.92380.91470.91840.94111.0081.0711.13071.1491
DEPI 0.87720.86720.91260.93970.93451.07551.07841.06551.03150.8871
SGAI 0.9050.89680.9180.95961.0071.07761.11031.08921.05890.9953
LVGI 1.03831.02851.07981.06511.0741.04941.03821.03951.05291.0884
TATA -0.0825-0.0633-0.1193-0.1424-0.1313-0.1216-0.0704-0.0619-0.0375-0.0705
M-score -2.92-2.83-3.16-3.21-3.16-3.09-2.72-2.71-2.55-2.75
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