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Cal-Maine Foods Inc (NAS:CALM)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

CALM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Max: -1.04
Current: -2.67

-3.15
-1.04

During the past 13 years, the highest Beneish M-Score of Cal-Maine Foods Inc was -1.04. The lowest was -3.15. 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 * 0.7004+0.528 * 1.2944+0.404 * 1.3038+0.892 * 0.8412+0.115 * 1.0555
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2735+4.679 * -0.0499-0.327 * 0.3094
=-2.67

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Aug16) TTM:Last Year (Aug15) TTM:
Accounts Receivable was $109 Mil.
Revenue was 239.845 + 303.02 + 449.76 + 545.975 = $1,539 Mil.
Gross Profit was -9.569 + 40.68 + 132.726 + 211.597 = $375 Mil.
Total Current Assets was $574 Mil.
Total Assets was $1,076 Mil.
Property, Plant and Equipment(Net PPE) was $405 Mil.
Depreciation, Depletion and Amortization(DDA) was $45 Mil.
Selling, General & Admin. Expense(SGA) was $175 Mil.
Total Current Liabilities was $75 Mil.
Long-Term Debt was $8 Mil.
Net Income was -30.936 + -0.376 + 64.164 + 109.23 = $142 Mil.
Non Operating Income was 0.194 + 1.654 + 10.367 + 1.234 = $13 Mil.
Cash Flow from Operations was -45.447 + 49.118 + 32.268 + 146.337 = $182 Mil.
Accounts Receivable was $185 Mil.
Revenue was 609.895 + 403.011 + 437.556 + 378.617 = $1,829 Mil.
Gross Profit was 263.071 + 109.394 + 112.517 + 92.709 = $578 Mil.
Total Current Assets was $694 Mil.
Total Assets was $1,136 Mil.
Property, Plant and Equipment(Net PPE) was $364 Mil.
Depreciation, Depletion and Amortization(DDA) was $43 Mil.
Selling, General & Admin. Expense(SGA) was $163 Mil.
Total Current Liabilities was $250 Mil.
Long-Term Debt was $35 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)
=(108.954 / 1538.6) / (184.925 / 1829.079)
=0.07081373 / 0.1011028
=0.7004

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)
=(577.691 / 1829.079) / (375.434 / 1538.6)
=0.3158371 / 0.24401014
=1.2944

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 - (573.953 + 404.787) / 1075.972) / (1 - (693.716 + 363.705) / 1136.166)
=0.09036666 / 0.06930765
=1.3038

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
=1538.6 / 1829.079
=0.8412

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))
=(42.646 / (42.646 + 363.705)) / (44.69 / (44.69 + 404.787))
=0.10494868 / 0.09942667
=1.0555

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)
=(175.053 / 1538.6) / (163.411 / 1829.079)
=0.11377421 / 0.08934059
=1.2735

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)
=((8.125 + 75.138) / 1075.972) / ((34.591 + 249.618) / 1136.166)
=0.07738398 / 0.25014743
=0.3094

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
=(142.082 - 13.449 - 182.276) / 1075.972
=-0.0499

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 -2.67 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 local exchange's 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

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
DSRI 0.93480.95951.00650.98241.09091.66510.99960.80080.51720.7004
GMI 0.79270.70170.73690.7710.83690.7260.68090.6850.73941.2944
AQI 0.72840.80610.87311.01621.03691.07721.00291.20821.27841.3038
SGI 1.11861.10761.10481.10711.09381.23731.32861.30031.2110.8412
DEPI 1.07751.12091.11071.03911.03680.98041.00311.0050.99831.0555
SGAI 0.90410.92050.92490.84850.93560.81120.77820.84960.91521.2735
LVGI 0.85470.95020.96990.87090.72341.21161.04350.66490.5440.3094
TATA -0.0409-0.0714-0.071-0.0592-0.0493-0.0396-0.0741-0.0392-0.0716-0.0499
M-score -2.77-2.95-2.87-2.72-2.51-1.99-2.68-2.52-2.93-2.67
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