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Lee Enterprises Inc (NYSE:LEE)
Beneish M-Score
-2.90 (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 -2.90 suggests that the company is not a manipulator.

LEE' s 10-Year Beneish M-Score Range
Min: -5.98   Max: -1.2
Current: -2.9

-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 * 0.9535+0.528 * 0.9922+0.404 * 1.0155+0.892 * 0.982+0.115 * 1.0464
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9883+4.679 * -0.0815-0.327 * 0.9736
=-2.90

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $72.0 Mil.
Revenue was 176.154 + 162.094 + 163.125 + 154.093 = $655.5 Mil.
Gross Profit was 167.308 + 153.22 + 153.901 + 144.759 = $619.2 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.
Net Income was 9.753 + 3.163 + -9.746 + 1.486 = $4.7 Mil.
Non Operating Income was -2.28 + 4 + -23.433 + -0.072 = $-21.8 Mil.
Cash Flow from Operations was 22.29 + 12.492 + 34.838 + 22.752 = $92.4 Mil.
Accounts Receivable was $76.9 Mil.
Revenue was 177.385 + 162.463 + 167.019 + 160.603 = $667.5 Mil.
Gross Profit was 166.823 + 152.339 + 156.548 + 149.891 = $625.6 Mil.
Total Current Assets was $105.8 Mil.
Total Assets was $820.2 Mil.
Property, Plant and Equipment(Net PPE) was $165.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $52.6 Mil.
Selling, General & Admin. Expense(SGA) was $249.7 Mil.
Total Current Liabilities was $95.9 Mil.
Long-Term Debt was $812.1 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)
=(71.959 / 655.466) / (76.85 / 667.47)
=0.10978296 / 0.11513626
=0.9535

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)
=(153.22 / 667.47) / (167.308 / 655.466)
=0.93727209 / 0.94465312
=0.9922

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 - (103.61 + 156.089) / 809.327) / (1 - (105.763 + 165.935) / 820.236)
=0.67911734 / 0.66875631
=1.0155

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
=655.466 / 667.47
=0.982

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))
=(52.62 / (52.62 + 165.935)) / (46.645 / (46.645 + 156.089))
=0.24076319 / 0.23007981
=1.0464

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)
=(242.343 / 655.466) / (249.702 / 667.47)
=0.36972627 / 0.37410221
=0.9883

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)
=((756.3 + 115.993) / 809.327) / ((812.109 + 95.879) / 820.236)
=1.07780044 / 1.10698384
=0.9736

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
=(4.656 - -21.785 - 92.372) / 809.327
=-0.0815

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 -2.90 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.0070.93510.95640.91160.97631.04381.04641.01481.01330.9535
GMI 0.99580.99460.99430.98940.9920.99030.99130.99580.99170.9922
AQI 1.00371.04451.01541.01660.94220.92910.93110.93881.02631.0155
SGI 0.97320.98420.99831.01420.95320.95290.9490.94990.97330.982
DEPI 0.98880.97150.97310.97641.05371.07151.09541.12771.07431.0464
SGAI 0.99871.0031.00280.99380.95130.95050.94930.95510.9830.9883
LVGI 1.02210.69420.99880.99811.16021.16171.15471.14440.98160.9736
TATA -0.0538-0.0569-0.062-0.0619-0.2119-0.2005-0.1927-0.2002-0.0687-0.0815
M-score -2.76-5.98-2.81-2.84-3.60-3.49-3.45-3.50-2.79-2.90
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