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Lee Enterprises Inc (NYSE:LEE)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

LEE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.25   Max: -2.22
Current: -2.85

-5.25
-2.22

During the past 13 years, the highest Beneish M-Score of Lee Enterprises Inc was -2.22. The lowest was -5.25. And the median was -2.77.


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 * 0.9627+0.528 * 0.9886+0.404 * 0.9933+0.892 * 0.9813+0.115 * 0.9583
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0007+4.679 * -0.0678-0.327 * 0.9603
=-2.85

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $58.9 Mil.
Revenue was 159.314 + 157.546 + 155.529 + 176.154 = $648.5 Mil.
Gross Profit was 152.979 + 150.125 + 147.868 + 167.308 = $618.3 Mil.
Total Current Assets was $98.3 Mil.
Total Assets was $763.5 Mil.
Property, Plant and Equipment(Net PPE) was $143.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.6 Mil.
Selling, General & Admin. Expense(SGA) was $238.2 Mil.
Total Current Liabilities was $105.3 Mil.
Long-Term Debt was $700.9 Mil.
Net Income was 9.881 + 1.882 + 1.8 + 9.753 = $23.3 Mil.
Non Operating Income was 4.598 + -2.527 + 0.825 + -2.28 = $0.6 Mil.
Cash Flow from Operations was 8.327 + 26.684 + 17.175 + 22.29 = $74.5 Mil.
Accounts Receivable was $62.3 Mil.
Revenue was 166.274 + 163.125 + 154.093 + 177.385 = $660.9 Mil.
Gross Profit was 157.4 + 153.901 + 144.759 + 166.823 = $622.9 Mil.
Total Current Assets was $96.1 Mil.
Total Assets was $811.3 Mil.
Property, Plant and Equipment(Net PPE) was $157.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.2 Mil.
Selling, General & Admin. Expense(SGA) was $242.5 Mil.
Total Current Liabilities was $118.7 Mil.
Long-Term Debt was $773.4 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)
=(58.899 / 648.543) / (62.343 / 660.877)
=0.09081742 / 0.09433374
=0.9627

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)
=(150.125 / 660.877) / (152.979 / 648.543)
=0.94250973 / 0.95333694
=0.9886

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 - (98.323 + 143.769) / 763.484) / (1 - (96.135 + 157.371) / 811.275)
=0.6829115 / 0.68752149
=0.9933

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
=648.543 / 660.877
=0.9813

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))
=(47.173 / (47.173 + 157.371)) / (45.563 / (45.563 + 143.769))
=0.2306252 / 0.24065134
=0.9583

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)
=(238.177 / 648.543) / (242.548 / 660.877)
=0.36724936 / 0.36700929
=1.0007

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)
=((700.872 + 105.281) / 763.484) / ((773.35 + 118.708) / 811.275)
=1.05588722 / 1.09957536
=0.9603

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
=(23.316 - 0.616 - 74.476) / 763.484
=-0.0678

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 -2.85 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 0.69351.02970.91460.97051.09440.91961.00830.9751.00690.9627
GMI 1.03841.01220.70930.98340.9821.00890.99550.99080.99260.9886
AQI 0.99861.00350.91670.96151.00470.94191.00370.94221.02630.9933
SGI 1.37830.99910.91240.81840.88890.97180.9720.95450.97950.9813
DEPI 0.670.95450.94321.0210.99280.90660.98881.05371.07430.9583
SGAI 0.91921.01621.04440.98240.99580.98580.99890.95670.97381.0021
LVGI 0.94870.95581.51971.13250.97671.14451.0221.16020.98160.9603
TATA -0.0426-0.0316-0.4983-0.1198-0.0357-0.205-0.0511-0.2119-0.0683-0.0678
M-score -2.61-2.59-5.34-3.29-2.66-3.61-2.75-3.60-2.79-2.85

Lee Enterprises Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.91160.97631.04381.04641.01481.00690.94750.9710.93950.9627
GMI 0.98940.9920.99030.99130.99580.99140.99180.99060.98980.9886
AQI 1.01660.94220.92910.93110.93881.02631.01551.02241.00010.9933
SGI 1.01420.95320.95290.9490.94990.97950.98831.00020.99760.9813
DEPI 0.97641.05371.07151.09541.12771.07431.04641.01580.97330.9583
SGAI 0.99380.95130.95050.94930.95510.97680.9820.99961.00751.0007
LVGI 0.99811.16021.16171.15471.14440.98160.97360.97490.98180.9603
TATA -0.0619-0.2119-0.2005-0.1927-0.2002-0.0683-0.081-0.0777-0.0798-0.0678
M-score -2.84-3.60-3.49-3.45-3.50-2.79-2.90-2.86-2.91-2.85
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