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Cal-Maine Foods Inc (NAS:CALM)
Beneish M-Score
-2.72 (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 -2.72 suggests that the company is not a manipulator.

CALM' s 10-Year Beneish M-Score Range
Min: -3.13   Max: -0.97
Current: -2.72

-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 -2.61.


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 * 0.9824+0.528 * 0.771+0.404 * 1.0162+0.892 * 1.1071+0.115 * 1.0391
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8485+4.679 * -0.0592-0.327 * 0.8709
=-2.72

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

This Year (Feb15) TTM:Last Year (Feb14) TTM:
Accounts Receivable was $106 Mil.
Revenue was 437.556 + 378.617 + 356.944 + 371.582 = $1,545 Mil.
Gross Profit was 112.517 + 92.709 + 81.101 + 91.291 = $378 Mil.
Total Current Assets was $494 Mil.
Total Assets was $901 Mil.
Property, Plant and Equipment(Net PPE) was $349 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General & Admin. Expense(SGA) was $161 Mil.
Total Current Liabilities was $136 Mil.
Long-Term Debt was $43 Mil.
Net Income was 50.882 + 36.603 + 27.655 + 31.492 = $147 Mil.
Non Operating Income was 5.4 + 1.389 + 2.157 + 1.625 = $11 Mil.
Cash Flow from Operations was 68.285 + 30.112 + 37.957 + 53.063 = $189 Mil.
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.



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)
=(106.368 / 1544.699) / (97.795 / 1395.258)
=0.06886002 / 0.07009098
=0.9824

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)
=(92.709 / 1395.258) / (112.517 / 1544.699)
=0.18846837 / 0.24446057
=0.771

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 - (493.816 + 348.782) / 900.749) / (1 - (439.909 + 306.528) / 797.077)
=0.0645585 / 0.06353213
=1.0162

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
=1544.699 / 1395.258
=1.1071

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))
=(36.773 / (36.773 + 306.528)) / (40.086 / (40.086 + 348.782))
=0.10711591 / 0.10308382
=1.0391

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)
=(161.305 / 1544.699) / (171.719 / 1395.258)
=0.10442488 / 0.1230733
=0.8485

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)
=((43.32 + 135.887) / 900.749) / ((53.384 + 128.698) / 797.077)
=0.19895332 / 0.22843715
=0.8709

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
=(146.632 - 10.571 - 189.417) / 900.749
=-0.0592

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 -2.72 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

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
DSRI 1.01021.11991.16960.94180.92821.01920.93480.95951.00650.9824
GMI 1.12171.1311.08831.15750.97970.87650.79270.70170.73690.771
AQI 1.03851.06271.02541.00010.89750.74020.72840.80610.87311.0162
SGI 1.12311.14551.15721.16851.15191.12761.11861.10761.10481.1071
DEPI 1.15271.11511.066210.90931.00961.07751.12091.11071.0391
SGAI 0.98570.98171.18361.19431.18061.21390.90410.92050.92490.8485
LVGI 0.87810.86130.87650.83940.82180.91510.85470.95020.96990.8709
TATA -0.0459-0.0385-0.0359-0.0553-0.0236-0.0372-0.0409-0.0714-0.071-0.0592
M-score -2.44-2.26-2.28-2.54-2.56-2.70-2.77-2.95-2.87-2.72
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