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Cal-Maine Foods Inc (NAS:CALM)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

CALM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07   Max: -1.58
Current: -2.93

-3.07
-1.58

During the past 13 years, the highest Beneish M-Score of Cal-Maine Foods Inc was -1.58. The lowest was -3.07. And the median was -2.63.


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 * 0.5172+0.528 * 0.7394+0.404 * 1.2784+0.892 * 1.211+0.115 * 0.9983
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9152+4.679 * -0.0716-0.327 * 0.544
=-2.93

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

This Year (May16) TTM:Last Year (May15) TTM:
Accounts Receivable was $62 Mil.
Revenue was 303.02 + 449.76 + 545.975 + 609.895 = $1,909 Mil.
Gross Profit was 40.68 + 132.726 + 211.597 + 263.071 = $648 Mil.
Total Current Assets was $626 Mil.
Total Assets was $1,112 Mil.
Property, Plant and Equipment(Net PPE) was $392 Mil.
Depreciation, Depletion and Amortization(DDA) was $45 Mil.
Selling, General & Admin. Expense(SGA) was $178 Mil.
Total Current Liabilities was $83 Mil.
Long-Term Debt was $9 Mil.
Net Income was -0.376 + 64.164 + 109.23 + 143.023 = $316 Mil.
Non Operating Income was 1.654 + 10.367 + 1.234 + 0.522 = $14 Mil.
Cash Flow from Operations was 49.118 + 32.268 + 146.337 + 154.115 = $382 Mil.
Accounts Receivable was $99 Mil.
Revenue was 403.011 + 437.556 + 378.617 + 356.944 = $1,576 Mil.
Gross Profit was 109.394 + 112.517 + 92.709 + 81.101 = $396 Mil.
Total Current Assets was $509 Mil.
Total Assets was $929 Mil.
Property, Plant and Equipment(Net PPE) was $359 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $160 Mil.
Total Current Liabilities was $102 Mil.
Long-Term Debt was $41 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)
=(62.012 / 1908.65) / (99.013 / 1576.128)
=0.03248998 / 0.06282041
=0.5172

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)
=(395.721 / 1576.128) / (648.074 / 1908.65)
=0.25107161 / 0.33954575
=0.7394

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 - (626.283 + 392.274) / 1111.765) / (1 - (508.964 + 358.79) / 928.653)
=0.08383786 / 0.06557778
=1.2784

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
=1908.65 / 1576.128
=1.211

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))
=(40.708 / (40.708 + 358.79)) / (44.592 / (44.592 + 392.274))
=0.10189788 / 0.10207249
=0.9983

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)
=(177.76 / 1908.65) / (160.386 / 1576.128)
=0.09313389 / 0.1017595
=0.9152

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)
=((9.25 + 83.451) / 1111.765) / ((40.795 + 101.546) / 928.653)
=0.08338183 / 0.15327684
=0.544

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
=(316.041 - 13.777 - 381.838) / 1111.765
=-0.0716

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 -2.93 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

May07May08May09May10May11May12May13May14May15May16
DSRI 1.18690.78850.96171.00951.22470.90581.16960.93481.09090.5172
GMI 0.65690.60841.47881.03071.08931.0831.08830.79270.83690.7394
AQI 0.84133.49481.11290.59741.01680.89081.02540.72841.03691.2784
SGI 1.25251.53131.01410.97991.0351.18171.15721.11861.09381.211
DEPI 1.04640.91421.03290.88460.99370.99121.06621.07751.03680.9983
SGAI 0.83570.81011.09581.12821.0650.94371.18360.90410.93560.9152
LVGI 0.97120.78231.00270.93590.81360.98560.87650.85470.72340.544
TATA -0.074-0.0367-0.0629-0.0894-0.0245-0.0861-0.0362-0.0409-0.0493-0.0716
M-score -2.63-1.48-2.51-3.07-2.25-2.79-2.28-2.77-2.51-2.93

Cal-Maine Foods Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
DSRI 1.01920.93480.95951.00650.98241.09091.66510.99960.80080.5172
GMI 0.87650.79270.70170.73690.7710.83690.7260.68090.6850.7394
AQI 0.74020.72840.80610.87311.01621.03691.07721.00291.20821.2784
SGI 1.12761.11861.10761.10481.10711.09381.23731.32861.30031.211
DEPI 1.00961.07751.12091.11071.03911.03680.98041.00311.0050.9983
SGAI 1.21390.90410.92050.92490.84850.93560.81120.77820.84960.9152
LVGI 0.91510.85470.95020.96990.87090.72341.21161.04350.66490.544
TATA -0.0372-0.0409-0.0714-0.071-0.0592-0.0493-0.0396-0.0741-0.0392-0.0716
M-score -2.70-2.77-2.95-2.87-2.72-2.51-1.99-2.68-2.52-2.93
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