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Lee Enterprises Inc (NYSE:LEE)
Beneish M-Score
-2.94 (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 -2.94 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: -2.94

-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 * 0.9809+0.528 * 0.9911+0.404 * 1.0038+0.892 * 0.9447+0.115 * 0.9486
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0146+4.679 * -0.0857-0.327 * 0.9352
=-2.94

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $53.5 Mil.
Revenue was 150.946 + 146.835 + 168.405 + 156.099 = $622.3 Mil.
Gross Profit was 144.342 + 140.782 + 161.72 + 149.764 = $596.6 Mil.
Total Current Assets was $86.3 Mil.
Total Assets was $715.2 Mil.
Property, Plant and Equipment(Net PPE) was $134.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $43.9 Mil.
Selling, General & Admin. Expense(SGA) was $232.1 Mil.
Total Current Liabilities was $111.2 Mil.
Long-Term Debt was $609.3 Mil.
Net Income was 4.092 + 19.228 + 11.237 + 9.881 = $44.4 Mil.
Non Operating Income was -1.609 + 29.3 + -0.688 + 4.598 = $31.6 Mil.
Cash Flow from Operations was 24.276 + 20.482 + 21.069 + 8.327 = $74.2 Mil.
Accounts Receivable was $57.7 Mil.
Revenue was 158.678 + 156.557 + 177.21 + 166.274 = $658.7 Mil.
Gross Profit was 151.257 + 148.896 + 168.364 + 157.4 = $625.9 Mil.
Total Current Assets was $91.9 Mil.
Total Assets was $772.6 Mil.
Property, Plant and Equipment(Net PPE) was $148.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.2 Mil.
Selling, General & Admin. Expense(SGA) was $242.2 Mil.
Total Current Liabilities was $120.0 Mil.
Long-Term Debt was $712.1 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)
=(53.476 / 622.285) / (57.712 / 658.719)
=0.0859349 / 0.08761247
=0.9809

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)
=(625.917 / 658.719) / (596.608 / 622.285)
=0.95020335 / 0.95873756
=0.9911

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 - (86.333 + 134.378) / 715.222) / (1 - (91.905 + 148.515) / 772.598)
=0.6914091 / 0.68881618
=1.0038

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
=622.285 / 658.719
=0.9447

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))
=(45.22 / (45.22 + 148.515)) / (43.858 / (43.858 + 134.378))
=0.23341162 / 0.24606701
=0.9486

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)
=(232.146 / 622.285) / (242.201 / 658.719)
=0.37305415 / 0.36768485
=1.0146

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)
=((609.29 + 111.173) / 715.222) / ((712.1 + 120.045) / 772.598)
=1.00732779 / 1.07707372
=0.9352

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
=(44.438 - 31.601 - 74.154) / 715.222
=-0.0857

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 -2.94 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 -0.039-0.0815-0.4987-0.1198-0.0357-0.205-0.0514-0.2122-0.0683-0.0678
M-score -2.59-2.82-5.34-3.29-2.66-3.61-2.75-3.61-2.79-2.85

Lee Enterprises Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.04161.01011.01140.95020.97240.93920.96270.95560.92160.9809
GMI 0.99110.99550.99170.9920.99070.98980.98860.98850.98940.9911
AQI 0.93110.93881.02631.01551.02241.00010.99331.01811.01051.0038
SGI 0.95340.95430.97510.98540.99880.99790.98130.96830.950.9447
DEPI 1.09541.12771.07431.04641.01580.97330.95830.950.93880.9486
SGAI 0.96140.96750.98120.98491.0011.00281.00421.00471.00471.0146
LVGI 1.15471.14440.98160.97360.97490.98180.96030.97970.93950.9352
TATA -0.193-0.2005-0.0683-0.081-0.0777-0.0798-0.0678-0.0682-0.0906-0.0857
M-score -3.45-3.50-2.79-2.90-2.86-2.91-2.85-2.87-3.01-2.94
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