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Cal-Maine Foods Inc (NAS:CALM)
Beneish M-Score
-2.76 (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 -2.76 suggests that the company is not a manipulator.

CALM' s 10-Year Beneish M-Score Range
Min: -3.07   Max: -1.48
Current: -2.76

-3.07
-1.48

During the past 13 years, the highest Beneish M-Score of Cal-Maine Foods Inc was -1.48. 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 * 0.9348+0.528 * 0.7927+0.404 * 0.7284+0.892 * 1.1186+0.115 * 1.0775
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9041+4.679 * -0.0388-0.327 * 0.8547
=-2.76

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

This Year (May14) TTM:Last Year (May13) TTM:
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 $157 Mil.
Total Current Liabilities was $121 Mil.
Long-Term Debt was $51 Mil.
Net Income was 31.492 + 42.853 + 26.106 + 8.756 = $109 Mil.
Non Operating Income was 1.625 + 12.566 + 0.748 + 1.864 = $17 Mil.
Cash Flow from Operations was 53.063 + 61.388 + 17.835 + -8.366 = $124 Mil.
Accounts Receivable was $79 Mil.
Revenue was 325.933 + 360.373 + 328.87 + 272.928 = $1,288 Mil.
Gross Profit was 51.489 + 67.047 + 51.298 + 44.715 = $215 Mil.
Total Current Assets was $415 Mil.
Total Assets was $746 Mil.
Property, Plant and Equipment(Net PPE) was $266 Mil.
Depreciation, Depletion and Amortization(DDA) was $34 Mil.
Selling, General & Admin. Expense(SGA) was $155 Mil.
Total Current Liabilities was $130 Mil.
Long-Term Debt was $55 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)
=(82.978 / 1440.907) / (79.352 / 1288.104)
=0.05758734 / 0.06160372
=0.9348

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)
=(91.895 / 1288.104) / (91.291 / 1440.907)
=0.16656186 / 0.21012043
=0.7927

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 - (445.393 + 314.935) / 811.661) / (1 - (414.881 + 266.008) / 745.627)
=0.06324438 / 0.08682357
=0.7284

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
=1440.907 / 1288.104
=1.1186

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))
=(34.173 / (34.173 + 266.008)) / (37.203 / (37.203 + 314.935))
=0.11384132 / 0.10564892
=1.0775

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)
=(156.712 / 1440.907) / (154.956 / 1288.104)
=0.10875927 / 0.12029774
=0.9041

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)
=((50.877 + 121.101) / 811.661) / ((54.647 + 130.195) / 745.627)
=0.21188403 / 0.24790143
=0.8547

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
=(109.207 - 16.803 - 123.92) / 811.661
=-0.0388

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 -2.76 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

May05May06May07May08May09May10May11May12May13May14
DSRI 1.14171.17151.18690.78850.96171.00951.22470.90581.16960.9348
GMI 3.24990.72470.65690.60841.47881.03071.08931.0831.08830.7927
AQI 1.03140.79610.84133.49481.11290.59741.01680.89081.02540.7284
SGI 0.65571.27261.25251.53131.01410.97991.0351.18171.15721.1186
DEPI 0.98951.09391.04640.91421.03290.88460.99370.99121.06621.0775
SGAI 1.0510.94940.83570.81011.09581.12821.0650.94371.18360.9041
LVGI 1.00481.0650.97120.78231.00270.93590.81360.98560.87650.8547
TATA -0.0783-0.0714-0.0732-0.0371-0.0629-0.0894-0.0245-0.0861-0.0362-0.0409
M-score -1.83-2.64-2.63-1.48-2.51-3.07-2.25-2.79-2.28-2.77

Cal-Maine Foods Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
DSRI 0.8690.90580.99891.01021.11991.16960.94180.92821.01920.9348
GMI 1.1511.0831.00331.12171.1311.08831.15750.97970.87650.7927
AQI 0.92180.89080.90781.03851.06271.02541.00010.89750.74020.7284
SGI 1.1721.18171.14751.12311.14551.15721.16851.15191.12761.1186
DEPI 1.0450.99121.04851.15271.11511.066210.90931.00961.0775
SGAI 0.99270.94370.95350.98570.98171.18361.19431.18061.21390.9041
LVGI 0.87980.98560.90020.87810.86130.87650.83940.82180.91510.8547
TATA -0.0502-0.0861-0.045-0.0459-0.0385-0.0359-0.0531-0.0214-0.0351-0.0388
M-score -2.59-2.79-2.55-2.44-2.26-2.28-2.53-2.55-2.69-2.76
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