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Lee Enterprises Inc (NYSE:LEE)
Beneish M-Score
-2.87 (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 -2.87 suggests that the company is not a manipulator.

LEE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.98   Max: -1.2
Current: -2.87

-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 -2.82.


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 * 0.954+0.528 * 0.9884+0.404 * 1.0181+0.892 * 0.9699+0.115 * 0.95
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9994+4.679 * -0.0682-0.327 * 0.9797
=-2.87

* 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 $66.6 Mil.
Revenue was 168.405 + 159.314 + 157.546 + 155.529 = $640.8 Mil.
Gross Profit was 161.72 + 152.979 + 150.125 + 147.868 = $612.7 Mil.
Total Current Assets was $88.5 Mil.
Total Assets was $743.4 Mil.
Property, Plant and Equipment(Net PPE) was $140.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.0 Mil.
Selling, General & Admin. Expense(SGA) was $234.9 Mil.
Total Current Liabilities was $107.1 Mil.
Long-Term Debt was $677.9 Mil.
Net Income was 11.237 + 9.881 + 1.882 + 1.8 = $24.8 Mil.
Non Operating Income was -0.688 + 4.598 + -2.527 + 0.825 = $2.2 Mil.
Cash Flow from Operations was 21.069 + 8.327 + 26.684 + 17.175 = $73.3 Mil.
Accounts Receivable was $72.0 Mil.
Revenue was 177.21 + 166.274 + 163.125 + 154.093 = $660.7 Mil.
Gross Profit was 168.364 + 157.4 + 153.901 + 144.759 = $624.4 Mil.
Total Current Assets was $103.6 Mil.
Total Assets was $809.3 Mil.
Property, Plant and Equipment(Net PPE) was $156.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $46.6 Mil.
Selling, General & Admin. Expense(SGA) was $242.3 Mil.
Total Current Liabilities was $116.0 Mil.
Long-Term Debt was $756.3 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)
=(66.58 / 640.794) / (71.959 / 660.702)
=0.10390235 / 0.10891294
=0.954

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)
=(152.979 / 660.702) / (161.72 / 640.794)
=0.94509174 / 0.95614503
=0.9884

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 - (88.542 + 140.845) / 743.404) / (1 - (103.61 + 156.089) / 809.327)
=0.69143696 / 0.67911734
=1.0181

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
=640.794 / 660.702
=0.9699

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))
=(46.645 / (46.645 + 156.089)) / (45.01 / (45.01 + 140.845))
=0.23007981 / 0.24217804
=0.95

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)
=(234.905 / 640.794) / (242.343 / 660.702)
=0.36658427 / 0.36679623
=0.9994

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)
=((677.861 + 107.129) / 743.404) / ((756.3 + 115.993) / 809.327)
=1.05593997 / 1.07780044
=0.9797

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
=(24.8 - 2.208 - 73.255) / 743.404
=-0.0682

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 -2.87 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 0.69351.02970.91460.97051.09440.92481.00270.97071.01140.9627
GMI 1.03841.01220.70930.98340.9821.00880.99550.99050.99290.9886
AQI 0.99861.00350.91670.96151.00470.94191.00370.94221.02630.9933
SGI 1.37830.99910.91240.81840.88890.96630.97750.95880.97510.9813
DEPI 0.670.95450.94321.0210.99280.91440.98031.05371.07430.9583
SGAI 0.91921.01621.04440.98240.99580.98430.98370.96850.97821.0021
LVGI 0.94870.95581.51971.13250.97671.14451.0221.16020.98160.9603
TATA -0.0426-0.0316-0.4983-0.1198-0.0357-0.205-0.0514-0.2122-0.0683-0.0678
M-score -2.61-2.59-5.34-3.29-2.66-3.61-2.75-3.61-2.79-2.85

Lee Enterprises Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.9721.03911.04161.01011.01140.95020.97390.94230.96120.954
GMI 0.99170.990.99110.99550.99170.9920.99080.990.98860.9884
AQI 0.94220.92910.93110.93881.02631.01551.02241.00010.99331.0181
SGI 0.95750.95720.95340.95430.97510.98540.99720.99460.98290.9699
DEPI 1.05371.07151.09541.12771.07431.04641.01580.97330.95830.95
SGAI 0.9630.96240.96140.96750.98120.98491.00261.01050.9990.9994
LVGI 1.16021.16171.15471.14440.98160.97360.97490.98180.96030.9797
TATA -0.2122-0.2009-0.193-0.2005-0.0683-0.081-0.0777-0.0798-0.0678-0.0682
M-score -3.60-3.49-3.45-3.50-2.79-2.90-2.86-2.92-2.85-2.87
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