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GuruFocus has detected 4 Warning Signs with Century Casinos Inc $CNTY.
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Century Casinos Inc (NAS:CNTY)
Beneish M-Score
-2.59 (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.

Century Casinos Inc has a M-score of -2.59 suggests that the company is not a manipulator.

CNTY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.68   Max: 26.33
Current: -2.59

-3.68
26.33

During the past 13 years, the highest Beneish M-Score of Century Casinos Inc was 26.33. The lowest was -3.68. And the median was -2.48.


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 Century Casinos 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 * 1.1512+0.528 * 1.0518+0.404 * 1.2536+0.892 * 1.0479+0.115 * 1.0103
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9547+4.679 * -0.0797-0.327 * 1.1837
=-2.59

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $3.2 Mil.
Revenue was 36.398 + 36.977 + 34.526 + 35.201 = $143.1 Mil.
Gross Profit was 17.644 + 17.091 + 17.109 + 18.157 = $70.0 Mil.
Total Current Assets was $44.9 Mil.
Total Assets was $218.1 Mil.
Property, Plant and Equipment(Net PPE) was $141.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.4 Mil.
Selling, General & Admin. Expense(SGA) was $44.3 Mil.
Total Current Liabilities was $25.2 Mil.
Long-Term Debt was $49.2 Mil.
Net Income was 2.159 + 3.185 + 1.887 + 2.249 = $9.5 Mil.
Non Operating Income was 0.203 + 0.745 + 0.02 + 1.56 = $2.5 Mil.
Cash Flow from Operations was 5.366 + 6.699 + 6.679 + 5.588 = $24.3 Mil.
Accounts Receivable was $2.6 Mil.
Revenue was 33.227 + 31.931 + 33.526 + 37.875 = $136.6 Mil.
Gross Profit was 17.159 + 15.013 + 17.395 + 20.696 = $70.3 Mil.
Total Current Assets was $34.9 Mil.
Total Assets was $193.5 Mil.
Property, Plant and Equipment(Net PPE) was $136.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.2 Mil.
Selling, General & Admin. Expense(SGA) was $44.3 Mil.
Total Current Liabilities was $22.0 Mil.
Long-Term Debt was $33.8 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)
=(3.168 / 143.102) / (2.626 / 136.559)
=0.02213806 / 0.01922978
=1.1512

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)
=(70.263 / 136.559) / (70.001 / 143.102)
=0.51452486 / 0.48916857
=1.0518

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 - (44.901 + 141.327) / 218.073) / (1 - (34.894 + 136.053) / 193.485)
=0.14602908 / 0.11648448
=1.2536

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
=143.102 / 136.559
=1.0479

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))
=(8.198 / (8.198 + 136.053)) / (8.424 / (8.424 + 141.327))
=0.0568315 / 0.05625338
=1.0103

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)
=(44.307 / 143.102) / (44.288 / 136.559)
=0.30961831 / 0.32431403
=0.9547

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)
=((49.212 + 25.237) / 218.073) / ((33.792 + 22.01) / 193.485)
=0.34139485 / 0.28840479
=1.1837

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
=(9.48 - 2.528 - 24.332) / 218.073
=-0.0797

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.

Century Casinos Inc has a M-score of -2.59 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 local exchange's currency.

Century Casinos Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.55591.23931.34581.18570.8260.65811.37350.97641.49891.7167
GMI 1.03191.03980.98381.08010.9471.07581.01471.05180.82741.0016
AQI 0.98770.65650.52361.22051.07171.14121.63740.88750.94251.2708
SGI 1.03230.64131.31171.22021.23290.961.45611.14781.1141.0463
DEPI 0.45130.97521.43021.16880.95771.27370.96250.86170.95971.0235
SGAI 1.01981.20310.81460.95130.85451.03511.05871.02570.98570.9905
LVGI 0.92080.8840.50210.90690.90610.7582.51031.09220.91741.2119
TATA -0.0758-0.13890.0298-0.0522-0.0575-0.037-0.0213-0.0447-0.055-0.0697
M-score -3.24-3.35-1.70-2.17-2.65-2.80-2.07-2.65-2.27-2.06

Century Casinos Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.97640.87531.81373.79121.49891.88020.81680.92311.71671.1512
GMI 1.05180.97860.88460.83940.82740.82350.9150.9721.00161.0518
AQI 0.88750.89480.90190.93420.94250.98070.98841.81421.27081.2536
SGI 1.14781.04871.07351.12561.1141.12541.04881.01371.04631.0479
DEPI 0.86170.92730.97140.99410.95970.98710.91120.93271.02351.0103
SGAI 1.02571.04560.96510.9750.98570.98871.06761.04530.99050.9547
LVGI 1.09221.11421.07580.98450.91740.86990.86671.13961.21191.1837
TATA -0.0447-0.0526-0.036-0.0606-0.055-0.0529-0.0798-0.0771-0.0697-0.0797
M-score -2.65-2.90-1.96-0.19-2.27-1.86-3.01-2.65-2.06-2.59
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