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Lee Enterprises Inc (NYSE:LEE)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

LEE' s 10-Year Beneish M-Score Range
Min: -5.98   Max: -1.2
Current: -2.86

-5.98
-1.2

During the past 13 years, the highest Beneish M-Score of Lee Enterprises Inc was -1.20. The lowest was -5.98. And the median was -2.81.


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 * 0.9772+0.528 * 0.9909+0.404 * 1.0224+0.892 * 0.9939+0.115 * 1.0158
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0059+4.679 * -0.0782-0.327 * 0.9749
=-2.86

* 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 $59.6 Mil.
Revenue was 155.529 + 176.154 + 162.094 + 163.125 = $656.9 Mil.
Gross Profit was 147.868 + 167.308 + 153.22 + 153.901 = $622.3 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.
Net Income was 1.8 + 9.753 + 3.163 + -9.746 = $5.0 Mil.
Non Operating Income was 0.825 + -2.28 + 4 + -23.433 = $-20.9 Mil.
Cash Flow from Operations was 17.175 + 22.29 + 12.492 + 34.838 = $86.8 Mil.
Accounts Receivable was $61.3 Mil.
Revenue was 154.093 + 177.385 + 162.463 + 167.019 = $661.0 Mil.
Gross Profit was 144.759 + 166.823 + 152.339 + 156.548 = $620.5 Mil.
Total Current Assets was $93.5 Mil.
Total Assets was $797.3 Mil.
Property, Plant and Equipment(Net PPE) was $163.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $50.0 Mil.
Selling, General & Admin. Expense(SGA) was $244.6 Mil.
Total Current Liabilities was $92.7 Mil.
Long-Term Debt was $791.3 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)
=(59.551 / 656.902) / (61.319 / 660.96)
=0.09065431 / 0.09277263
=0.9772

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)
=(167.308 / 660.96) / (147.868 / 656.902)
=0.93873911 / 0.94732091
=0.9909

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 - (85.777 + 153.425) / 779.637) / (1 - (93.54 + 163.209) / 797.282)
=0.69318798 / 0.67796965
=1.0224

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
=656.902 / 660.96
=0.9939

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))
=(49.964 / (49.964 + 163.209)) / (46.018 / (46.018 + 153.425))
=0.2343824 / 0.23073259
=1.0158

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)
=(244.508 / 656.902) / (244.564 / 660.96)
=0.37221382 / 0.37001331
=1.0059

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)
=((736.85 + 105.96) / 779.637) / ((791.339 + 92.732) / 797.282)
=1.08102874 / 1.10885609
=0.9749

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
=(4.97 - -20.888 - 86.795) / 779.637
=-0.0782

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 -2.86 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

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 1.62670.69351.02970.91460.97051.09440.91961.00830.9751.0133
GMI 1.00981.03841.01220.70930.98340.9821.00890.99550.99080.993
AQI 1.0690.99861.00350.91670.96151.00470.94191.00370.94221.0263
SGI 1.19841.37830.99910.91240.81840.88890.97180.9720.95450.9733
DEPI 1.3640.670.95450.94321.0210.99280.90660.98881.05371.0743
SGAI 1.03930.91921.01621.04440.98240.99580.98580.99890.95670.98
LVGI 2.47240.94870.95581.51971.13250.97671.14451.0221.16020.9816
TATA -0.0246-0.0426-0.0316-0.4983-0.1198-0.0357-0.205-0.0511-0.2119-0.0687
M-score -2.25-2.61-2.59-5.34-3.29-2.66-3.61-2.75-3.60-2.79

Lee Enterprises Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.93510.95640.91160.97631.04381.04641.01481.01330.95350.9772
GMI 0.99460.99430.98940.9920.99030.99130.99580.99170.99220.9909
AQI 1.04451.01541.01660.94220.92910.93110.93881.02631.01551.0224
SGI 0.98420.99831.01420.95320.95290.9490.94990.97330.9820.9939
DEPI 0.97150.97310.97641.05371.07151.09541.12771.07431.04641.0158
SGAI 1.0031.00280.99380.95130.95050.94930.95510.9830.98831.0059
LVGI 10.69420.99880.99811.16021.16171.15471.14440.98160.97360.9749
TATA -0.0569-0.062-0.0619-0.2119-0.2005-0.1927-0.2002-0.0687-0.0815-0.0782
M-score -5.98-2.81-2.84-3.60-3.49-3.45-3.50-2.79-2.90-2.86
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