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Cal-Maine Foods Inc (NAS:CALM)
Beneish M-Score
-2.58 (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 -2.58 suggests that the company is not a manipulator.

CALM' s 10-Year Beneish M-Score Range
Min: -3.07   Max: -1.58
Current: -2.58

-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 * 1.0909+0.528 * 0.8369+0.404 * 1.0369+0.892 * 1.0938+0.115 * 1.0368
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0305+4.679 * -0.0493-0.327 * 0.8779
=-2.58

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

This Year (May15) TTM:Last Year (May14) TTM:
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 $136 Mil.
Total Current Liabilities was $132 Mil.
Long-Term Debt was $41 Mil.
Net Income was 46.114 + 50.882 + 36.603 + 27.655 = $161 Mil.
Non Operating Income was 2.782 + 5.4 + 1.389 + 2.157 = $12 Mil.
Cash Flow from Operations was 58.976 + 68.285 + 30.112 + 37.957 = $195 Mil.
Accounts Receivable was $83 Mil.
Revenue was 371.582 + 395.522 + 354.275 + 319.528 = $1,441 Mil.
Gross Profit was 91.291 + 91.895 + 74.667 + 44.911 = $303 Mil.
Total Current Assets was $445 Mil.
Total Assets was $812 Mil.
Property, Plant and Equipment(Net PPE) was $315 Mil.
Depreciation, Depletion and Amortization(DDA) was $37 Mil.
Selling, General & Admin. Expense(SGA) was $121 Mil.
Total Current Liabilities was $121 Mil.
Long-Term Debt was $51 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)
=(99.013 / 1576.128) / (82.978 / 1440.907)
=0.06282041 / 0.05758734
=1.0909

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)
=(112.517 / 1440.907) / (109.394 / 1576.128)
=0.21012043 / 0.25107161
=0.8369

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 - (508.964 + 358.79) / 928.653) / (1 - (445.393 + 314.935) / 811.661)
=0.06557778 / 0.06324438
=1.0369

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
=1576.128 / 1440.907
=1.0938

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))
=(37.203 / (37.203 + 314.935)) / (40.708 / (40.708 + 358.79))
=0.10564892 / 0.10189788
=1.0368

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)
=(135.885 / 1576.128) / (120.551 / 1440.907)
=0.08621444 / 0.08366328
=1.0305

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)
=((40.795 + 131.937) / 928.653) / ((50.877 + 121.101) / 811.661)
=0.18600274 / 0.21188403
=0.8779

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
=(161.254 - 11.728 - 195.33) / 928.653
=-0.0493

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 -2.58 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

May06May07May08May09May10May11May12May13May14May15
DSRI 1.17151.18690.78850.96171.00951.22470.90581.16960.93481.0909
GMI 0.72470.65690.60841.47881.03071.08931.0831.08830.79270.8369
AQI 0.79610.84133.49481.11290.59741.01680.89081.02540.72841.0369
SGI 1.27261.25251.53131.01410.97991.0351.18171.15721.11861.0938
DEPI 1.09391.04640.91421.03290.88460.99370.99121.06621.07751.0368
SGAI 0.94940.83570.81011.09581.12821.0650.94371.18360.69551.0305
LVGI 1.0650.97120.78231.00270.93590.81360.98560.87650.85470.8779
TATA -0.0714-0.0732-0.0371-0.0629-0.0894-0.0245-0.0861-0.0362-0.0409-0.0493
M-score -2.64-2.63-1.48-2.51-3.07-2.25-2.79-2.28-2.74-2.58

Cal-Maine Foods Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
DSRI 1.11991.16960.94180.92821.01920.93480.95951.00650.98241.0909
GMI 1.1311.08831.15750.97970.87650.79270.70170.73690.7710.8369
AQI 1.06271.02541.00010.89750.74020.72840.80610.87311.01621.0369
SGI 1.14551.15721.16851.15191.12761.11861.10761.10481.10711.0938
DEPI 1.11511.066210.90931.00961.07751.12091.11071.03911.0368
SGAI 0.98171.18361.19431.18061.21390.69550.71610.72360.65831.0305
LVGI 0.86130.87650.83940.82180.91510.85470.95020.96990.87090.8779
TATA -0.0385-0.0359-0.0553-0.0236-0.0372-0.0409-0.0714-0.071-0.0592-0.0493
M-score -2.26-2.28-2.54-2.56-2.70-2.74-2.91-2.83-2.69-2.58
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