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Cal-Maine Foods Inc (NAS:CALM)
Beneish M-Score
-2.69 (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.

Cal-Maine Foods Inc has a M-score of -2.69 suggests that the company is not a manipulator.

CALM' s 10-Year Beneish M-Score Range
Min: -3.13   Max: -0.97
Current: -2.69

-3.13
-0.97

During the past 13 years, the highest Beneish M-Score of Cal-Maine Foods Inc was -0.97. The lowest was -3.13. And the median was -2.55.


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 Cal-Maine Foods 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 * 1.0192+0.528 * 0.8765+0.404 * 0.7402+0.892 * 1.1276+0.115 * 1.0096
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2139+4.679 * -0.0351-0.327 * 0.9151
=-2.69

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

This Year (Feb14) TTM:Last Year (Feb13) TTM:
Accounts Receivable was $98 Mil.
Revenue was 395.522 + 354.275 + 319.528 + 325.933 = $1,395 Mil.
Gross Profit was 91.895 + 74.667 + 44.911 + 51.489 = $263 Mil.
Total Current Assets was $440 Mil.
Total Assets was $797 Mil.
Property, Plant and Equipment(Net PPE) was $307 Mil.
Depreciation, Depletion and Amortization(DDA) was $37 Mil.
Selling, General & Admin. Expense(SGA) was $172 Mil.
Total Current Liabilities was $129 Mil.
Long-Term Debt was $53 Mil.
Net Income was 42.853 + 26.106 + 8.756 + -3.833 = $74 Mil.
Non Operating Income was 12.566 + 0.748 + 1.864 + 0.926 = $16 Mil.
Cash Flow from Operations was 61.388 + 17.835 + -8.366 + 14.938 = $86 Mil.
Accounts Receivable was $85 Mil.
Revenue was 360.373 + 328.87 + 272.928 + 275.245 = $1,237 Mil.
Gross Profit was 67.047 + 51.298 + 44.715 + 41.355 = $204 Mil.
Total Current Assets was $421 Mil.
Total Assets was $755 Mil.
Property, Plant and Equipment(Net PPE) was $269 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General & Admin. Expense(SGA) was $125 Mil.
Total Current Liabilities was $132 Mil.
Long-Term Debt was $57 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)
=(97.795 / 1395.258) / (85.1 / 1237.416)
=0.07009098 / 0.06877234
=1.0192

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)
=(74.667 / 1237.416) / (91.895 / 1395.258)
=0.16519505 / 0.18846837
=0.8765

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 - (439.909 + 306.528) / 797.077) / (1 - (420.523 + 269.395) / 754.69)
=0.06353213 / 0.08582597
=0.7402

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
=1395.258 / 1237.416
=1.1276

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))
=(32.665 / (32.665 + 269.395)) / (36.773 / (36.773 + 306.528))
=0.10814077 / 0.10711591
=1.0096

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)
=(171.719 / 1395.258) / (125.458 / 1237.416)
=0.1230733 / 0.10138708
=1.2139

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)
=((53.384 + 128.698) / 797.077) / ((56.878 + 131.521) / 754.69)
=0.22843715 / 0.2496376
=0.9151

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
=(73.882 - 16.104 - 85.795) / 797.077
=-0.0351

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.

Cal-Maine Foods Inc has a M-score of -2.69 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.

Cal-Maine Foods Inc Annual Data

May04May05May06May07May08May09May10May11May12May13
DSRI 0.77661.14171.22681.16650.81980.91820.99671.49280.78881.137
GMI 0.6083.24990.72470.65690.60841.47881.03071.08931.0831.0883
AQI 1.14041.03140.79610.84133.49481.11290.59741.01680.89081.0254
SGI 1.47710.65571.27261.25251.53131.01410.97991.0351.18171.1572
DEPI 0.94930.98951.09391.04640.91421.03290.88460.99370.99121.0662
SGAI 1.01931.0510.94940.83570.81011.09581.12821.0650.94371.1836
LVGI 0.71091.00481.0650.97120.78231.00270.93590.81360.98560.8765
TATA -0.0834-0.0783-0.0714-0.0732-0.0371-0.0629-0.0894-0.0245-0.0861-0.0362
M-score -2.72-1.83-2.59-2.65-1.45-2.55-3.08-2.01-2.90-2.31

Cal-Maine Foods Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
DSRI 0.91140.8690.78880.99891.01021.11991.1370.94180.92821.0192
GMI 1.17491.1511.0831.00331.12171.1311.08831.15750.97970.8765
AQI 0.91520.92180.89080.90781.03851.06271.02541.00010.89750.7402
SGI 1.1451.1721.18171.14751.12311.14551.15721.16851.15191.1276
DEPI 1.02991.0450.99121.04851.15271.11511.066210.90931.0096
SGAI 1.00050.99270.94370.95350.98570.98171.18361.19431.18061.2139
LVGI 0.91040.87980.98560.90020.87810.86130.87650.83940.82180.9151
TATA -0.0616-0.0502-0.0861-0.045-0.0459-0.0385-0.0359-0.0531-0.0214-0.0351
M-score -2.63-2.59-2.90-2.55-2.44-2.26-2.31-2.53-2.55-2.69
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