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Cal-Maine Foods Inc (NAS:CALM)
Beneish M-Score
-2.95 (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 -2.95 suggests that the company is not a manipulator.

CALM' s 10-Year Beneish M-Score Range
Min: -3.13   Max: -0.97
Current: -2.95

-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 -2.59.


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 * 0.9595+0.528 * 0.7017+0.404 * 0.8061+0.892 * 1.1076+0.115 * 1.1209
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9205+4.679 * -0.0714-0.327 * 0.9502
=-2.95

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

This Year (Aug14) TTM:Last Year (Aug13) TTM:
Accounts Receivable was $90 Mil.
Revenue was 356.944 + 371.582 + 395.522 + 354.275 = $1,478 Mil.
Gross Profit was 81.101 + 91.291 + 91.895 + 74.667 = $339 Mil.
Total Current Assets was $450 Mil.
Total Assets was $829 Mil.
Property, Plant and Equipment(Net PPE) was $326 Mil.
Depreciation, Depletion and Amortization(DDA) was $37 Mil.
Selling, General & Admin. Expense(SGA) was $163 Mil.
Total Current Liabilities was $123 Mil.
Long-Term Debt was $48 Mil.
Net Income was 27.655 + 31.492 + 42.853 + 26.106 = $128 Mil.
Non Operating Income was 2.157 + 1.625 + 12.566 + 0.748 = $17 Mil.
Cash Flow from Operations was 37.957 + 53.063 + 61.388 + 17.835 = $170 Mil.
Accounts Receivable was $84 Mil.
Revenue was 319.528 + 325.933 + 360.373 + 328.87 = $1,335 Mil.
Gross Profit was 44.911 + 51.489 + 67.047 + 51.298 = $215 Mil.
Total Current Assets was $399 Mil.
Total Assets was $726 Mil.
Property, Plant and Equipment(Net PPE) was $270 Mil.
Depreciation, Depletion and Amortization(DDA) was $35 Mil.
Selling, General & Admin. Expense(SGA) was $160 Mil.
Total Current Liabilities was $105 Mil.
Long-Term Debt was $52 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)
=(89.762 / 1478.323) / (84.463 / 1334.704)
=0.0607188 / 0.0632822
=0.9595

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)
=(91.291 / 1334.704) / (81.101 / 1478.323)
=0.16089335 / 0.22928278
=0.7017

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 - (449.607 + 326.39) / 829.358) / (1 - (398.825 + 269.522) / 726.32)
=0.06434013 / 0.07981744
=0.8061

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
=1478.323 / 1334.704
=1.1076

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))
=(35.137 / (35.137 + 269.522)) / (37.433 / (37.433 + 326.39))
=0.11533222 / 0.10288794
=1.1209

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)
=(162.809 / 1478.323) / (159.679 / 1334.704)
=0.11013087 / 0.11963626
=0.9205

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)
=((48.352 + 122.875) / 829.358) / ((52.415 + 105.395) / 726.32)
=0.20645728 / 0.21727338
=0.9502

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
=(128.106 - 17.096 - 170.243) / 829.358
=-0.0714

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 -2.95 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 0.98951.09391.04640.91421.08170.84470.99370.99121.06621.0775
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

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 0.90580.99891.01021.11991.16960.94180.92821.01920.93480.9595
GMI 1.0831.00331.12171.1311.08831.15750.97970.87650.79270.7017
AQI 0.89080.90781.03851.06271.02541.00010.89750.74020.72840.8061
SGI 1.18171.14751.12311.14551.15721.16851.15191.12761.11861.1076
DEPI 0.99121.04851.15271.11511.066210.90931.00961.07751.1209
SGAI 0.94370.95350.98570.98171.18361.19431.18061.21390.90410.9205
LVGI 0.98560.90020.87810.86130.87650.83940.82180.91510.85470.9502
TATA -0.0861-0.0454-0.0462-0.0388-0.0362-0.0553-0.0236-0.0372-0.0409-0.0714
M-score -2.79-2.55-2.44-2.27-2.28-2.54-2.56-2.70-2.77-2.95
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