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Lee Enterprises Inc (NYSE:LEE)
Beneish M-Score
-3.01 (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.

Lee Enterprises Inc has a M-score of -3.01 suggests that the company is not a manipulator.

LEE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.98   Max: -1.17
Current: -3.01

-5.98
-1.17

During the past 13 years, the highest Beneish M-Score of Lee Enterprises Inc was -1.17. The lowest was -5.98. And the median was -2.85.


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 Lee Enterprises 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 * 0.9186+0.528 * 0.9893+0.404 * 1.0105+0.892 * 0.9532+0.115 * 0.9388
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9977+4.679 * -0.0906-0.327 * 0.9395
=-3.01

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $52.1 Mil.
Revenue was 146.835 + 168.405 + 159.314 + 157.546 = $632.1 Mil.
Gross Profit was 140.782 + 161.72 + 152.979 + 150.125 = $605.6 Mil.
Total Current Assets was $78.8 Mil.
Total Assets was $717.9 Mil.
Property, Plant and Equipment(Net PPE) was $136.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $44.4 Mil.
Selling, General & Admin. Expense(SGA) was $232.5 Mil.
Total Current Liabilities was $104.1 Mil.
Long-Term Debt was $625.1 Mil.
Net Income was 19.228 + 11.237 + 9.881 + 1.882 = $42.2 Mil.
Non Operating Income was 29.3 + -0.688 + 4.598 + -2.527 = $30.7 Mil.
Cash Flow from Operations was 20.482 + 21.069 + 8.327 + 26.684 = $76.6 Mil.
Accounts Receivable was $59.6 Mil.
Revenue was 156.557 + 177.21 + 166.274 + 163.125 = $663.2 Mil.
Gross Profit was 148.896 + 168.364 + 157.4 + 153.901 = $628.6 Mil.
Total Current Assets was $85.8 Mil.
Total Assets was $779.6 Mil.
Property, Plant and Equipment(Net PPE) was $153.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $46.0 Mil.
Selling, General & Admin. Expense(SGA) was $244.5 Mil.
Total Current Liabilities was $106.0 Mil.
Long-Term Debt was $736.9 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)
=(52.139 / 632.1) / (59.551 / 663.166)
=0.08248537 / 0.08979803
=0.9186

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)
=(628.561 / 663.166) / (605.606 / 632.1)
=0.94781849 / 0.95808575
=0.9893

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 - (78.849 + 136.203) / 717.926) / (1 - (85.777 + 153.425) / 779.637)
=0.70045381 / 0.69318798
=1.0105

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
=632.1 / 663.166
=0.9532

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))
=(46.018 / (46.018 + 153.425)) / (44.386 / (44.386 + 136.203))
=0.23073259 / 0.24578463
=0.9388

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)
=(232.519 / 632.1) / (244.508 / 663.166)
=0.36785161 / 0.36869803
=0.9977

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)
=((625.098 + 104.085) / 717.926) / ((736.85 + 105.96) / 779.637)
=1.01567989 / 1.08102874
=0.9395

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
=(42.228 - 30.683 - 76.562) / 717.926
=-0.0906

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.

Lee Enterprises Inc has a M-score of -3.01 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.

Lee Enterprises Inc Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 0.7291.02970.91460.97051.04920.92261.0430.981.01330.9566
GMI 1.03771.01221.30360.53510.98261.00910.99470.99060.9930.9883
AQI 0.99861.00350.91670.96151.00470.94191.00370.94221.02630.9933
SGI 1.31110.99910.91240.81840.92710.96860.93970.94970.97330.9876
DEPI 0.68590.95450.94321.0210.97980.90880.99081.06291.07430.9583
SGAI 0.92271.01620.72531.41461.00440.97920.99880.96490.96980.9958
LVGI 0.94870.95581.51971.13250.97671.14451.0221.16020.98160.9603
TATA -0.039-0.0815-0.3859-0.1198-0.0353-0.205-0.0511-0.2115-0.0687-0.0678
M-score -2.62-2.82-4.44-3.60-2.67-3.61-2.74-3.60-2.79-2.85

Lee Enterprises Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.03911.04161.01011.01140.95020.97240.94080.95960.95250.9186
GMI 0.990.99110.99550.99170.9920.99070.98990.98850.98840.9893
AQI 0.92910.93110.93881.02631.01551.02241.00010.99331.01811.0105
SGI 0.95720.95340.95430.97510.98540.99880.99620.98450.97140.9532
DEPI 1.07151.09541.12771.07431.04641.01580.97330.95830.950.9388
SGAI 0.96240.96140.96750.98120.98491.0011.00890.99740.99780.9977
LVGI 1.16171.15471.14440.98160.97360.97490.98180.96030.97970.9395
TATA -0.2009-0.193-0.2005-0.0683-0.081-0.0777-0.0798-0.0678-0.0682-0.0906
M-score -3.49-3.45-3.50-2.79-2.90-2.86-2.92-2.85-2.87-3.01
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