Consensus Cloud Solutions (Consensus Cloud Solutions) Beneish M-Score : -2.73 (As of May. 04, 2024)

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What is Consensus Cloud Solutions Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Consensus Cloud Solutions's Beneish M-Score or its related term are showing as below:

CCSI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73 Med: -2.5 Max: -2.26
Current: -2.73

During the past 6 years, the highest Beneish M-Score of Consensus Cloud Solutions was -2.26. The lowest was -2.73. And the median was -2.50.

Consensus Cloud Solutions Beneish M-Score Historical Data

The historical data trend for Consensus Cloud Solutions's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Consensus Cloud Solutions Beneish M-Score Chart

Consensus Cloud Solutions Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.26

-2.73

Consensus Cloud Solutions Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial												-2.26	-2.30	-2.43	-2.64	-2.73

Competitive Comparison of Consensus Cloud Solutions's Beneish M-Score

For the Software - Infrastructure subindustry, Consensus Cloud Solutions's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Consensus Cloud Solutions's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Consensus Cloud Solutions's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Consensus Cloud Solutions's Beneish M-Score falls into.

Consensus Cloud Solutions Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Consensus Cloud Solutions for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9394

0.528 * 1.0216

0.404 * 0.9783

0.892 * 1.0004

0.115 * 1.1847

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.005

4.679 * -0.053161

0.327 * 0.9024

-2.73

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $26.3 Mil.
Revenue was 87.754 + 90.562 + 92.792 + 91.454 = $362.6 Mil.
Gross Profit was 71.042 + 73.709 + 75.546 + 73.946 = $294.2 Mil.
Total Current Assets was $125.2 Mil.
Total Assets was $647.3 Mil.
Property, Plant and Equipment(Net PPE) was $88.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.4 Mil.
Selling, General, & Admin. Expense(SGA) was $139.3 Mil.
Total Current Liabilities was $71.4 Mil.
Long-Term Debt & Capital Lease Obligation was $738.6 Mil.
Net Income was 16.772 + 24.007 + 21.058 + 15.458 = $77.3 Mil.
Non Operating Income was -5.858 + 3.725 + 0.568 + -0.844 = $-2.4 Mil.
Cash Flow from Operations was 2.034 + 59.987 + 14.121 + 37.971 = $114.1 Mil.

Total Receivables was $28.0 Mil.
Revenue was 90.232 + 91.777 + 91.115 + 89.298 = $362.4 Mil.
Gross Profit was 74.392 + 76.358 + 75.528 + 74.194 = $300.5 Mil.
Total Current Assets was $136.5 Mil.
Total Assets was $633.9 Mil.
Property, Plant and Equipment(Net PPE) was $62.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.3 Mil.
Selling, General, & Admin. Expense(SGA) was $138.5 Mil.
Total Current Liabilities was $71.3 Mil.
Long-Term Debt & Capital Lease Obligation was $807.7 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(26.342 / 362.562)	/	(28.029 / 362.422)
	=	0.072655	/	0.077338
	=	0.9394

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)
	=	(300.472 / 362.422)	/	(294.243 / 362.562)
	=	0.829067	/	0.811566
	=	1.0216

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (125.248 + 87.962) / 647.255)	/	(1 - (136.528 + 62.833) / 633.899)
	=	0.670594	/	0.6855
	=	0.9783

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	362.562	/	362.422
	=	1.0004

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(15.302 / (15.302 + 62.833))	/	(17.421 / (17.421 + 87.962))
	=	0.195841	/	0.165311
	=	1.1847

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(139.287 / 362.562)	/	(138.535 / 362.422)
	=	0.384174	/	0.382248
	=	1.005

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((738.617 + 71.384) / 647.255)	/	((807.742 + 71.322) / 633.899)
	=	1.25144	/	1.386757
	=	0.9024

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
	=	(77.295 - -2.409	-	114.113)	/	647.255
	=	-0.053161

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Consensus Cloud Solutions has a M-score of -2.73 suggests that the company is unlikely to be a manipulator.

Consensus Cloud Solutions Beneish M-Score Related Terms

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Consensus Cloud Solutions (Consensus Cloud Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Consensus Cloud Solutions Inc (NAS:CCSI) » Definitions » Beneish M-Score

Comparable Companies

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Traded in Other Exchanges

N/A

Address

700 South Flower Street, 15th Floor, Los Angeles, CA, USA, 90017

Website

https://www.consensus.com

Consensus Cloud Solutions Inc is a provider of secure information delivery services with a scalable Software-as-a-Service SaaS platform. It is engaged in fax cloud. Geographically, it derives a maximum revenue from the United States.

Executives

James C Malone	officer: Chief Financial Officer	3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305
Elaine Healy	director
Douglas Y Bech	director	C/O J2 GLOBAL COMMUNICATIONS INC, 6922 HOLLYWOOD BLVD/LEGAL DEPT - 5TH FL., LOS ANGELES CA 90028
Pamela Sutton-wallace	director	197 VAN VORST ST, APT 1505, JERSEY CITY NJ 07302
Steve Emberland	officer: Vice President, Controller	700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017
John Nebergall	officer: Chief Operating Officer	700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017
Nathaniel Simmons	director	700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017
Jeffrey Alan Sullivan	officer: Chief Technology Officer	700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017
R Scott Turicchi	director, officer: CEO & CFO	C/O J2 GLOBAL COMMUNICATIONS, INC., 6922 HOLLYWOOD BLVD, 5TH FLOOR, LOS ANGELES CA 90028
Jeremy Rossen	director, officer: President	ZIFF DAVIS INC, 114 5TH AVE,14TH AND 15TH FLOOR, NEW YORK NY 10011
Stephen Ross	director
J2 Global, Inc.	10 percent owner	114 5TH AVENUE, NEW YORK NY 10011
Vithya Aubee	director, officer: VP & Secretary	700 S. FLOWER STREET, 15TH FLOOR, LOS ANGELES CA 90017