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Cal-Maine Foods Inc (NAS:CALM)
Beneish M-Score
-2.54 (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 -2.54 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: -2.54

-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 * 0.8008+0.528 * 0.685+0.404 * 1.2082+0.892 * 1.3003+0.115 * 1.005
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9445+4.679 * -0.0392-0.327 * 0.6649
=-2.54

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

This Year (Feb16) TTM:Last Year (Feb15) TTM:
Accounts Receivable was $111 Mil.
Revenue was 449.76 + 545.975 + 609.895 + 403.011 = $2,009 Mil.
Gross Profit was 132.726 + 211.597 + 263.071 + 109.394 = $717 Mil.
Total Current Assets was $654 Mil.
Total Assets was $1,124 Mil.
Property, Plant and Equipment(Net PPE) was $382 Mil.
Depreciation, Depletion and Amortization(DDA) was $44 Mil.
Selling, General & Admin. Expense(SGA) was $154 Mil.
Total Current Liabilities was $128 Mil.
Long-Term Debt was $21 Mil.
Net Income was 64.164 + 109.23 + 143.023 + 46.114 = $363 Mil.
Non Operating Income was 10.367 + 1.234 + 0.522 + 2.782 = $15 Mil.
Cash Flow from Operations was 32.268 + 146.337 + 154.115 + 58.976 = $392 Mil.
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 $125 Mil.
Total Current Liabilities was $136 Mil.
Long-Term Debt was $43 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)
=(110.765 / 2008.641) / (106.368 / 1544.699)
=0.05514425 / 0.06886002
=0.8008

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)
=(211.597 / 1544.699) / (132.726 / 2008.641)
=0.24446057 / 0.35685222
=0.685

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 - (654.268 + 382.271) / 1124.232) / (1 - (493.816 + 348.782) / 900.749)
=0.07800258 / 0.0645585
=1.2082

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
=2008.641 / 1544.699
=1.3003

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))
=(40.086 / (40.086 + 348.782)) / (43.692 / (43.692 + 382.271))
=0.10308382 / 0.10257229
=1.005

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)
=(153.699 / 2008.641) / (125.144 / 1544.699)
=0.0765189 / 0.08101514
=0.9445

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)
=((21.081 + 127.627) / 1124.232) / ((43.32 + 135.887) / 900.749)
=0.13227519 / 0.19895332
=0.6649

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
=(362.531 - 14.905 - 391.696) / 1124.232
=-0.0392

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 -2.54 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 1.09391.04640.91421.08170.84470.99370.99121.06621.07751.0368
SGAI 0.94940.83570.81011.09581.12821.0650.94371.18360.90410.7927
LVGI 1.0650.97120.78231.00270.93590.81360.98560.87650.85470.8779
TATA -0.072-0.074-0.0367-0.0624-0.0894-0.0245-0.0861-0.0362-0.0409-0.0493
M-score -2.65-2.63-1.48-2.50-3.07-2.25-2.79-2.28-2.77-2.53

Cal-Maine Foods Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
DSRI 0.92821.01920.93480.95951.00650.98241.09091.66510.99960.8008
GMI 0.97970.87650.79270.70170.73690.7710.83690.7260.68090.685
AQI 0.89750.74020.72840.80610.87311.01621.03691.07721.00291.2082
SGI 1.15191.12761.11861.10761.10481.10711.09381.23731.32861.3003
DEPI 0.90931.00961.07751.12091.11071.03911.03680.98041.00311.005
SGAI 1.18061.21390.69550.71610.72360.65831.03050.88650.85280.9445
LVGI 0.82180.91510.85470.95020.96990.87090.87791.21161.04350.6649
TATA -0.0236-0.0372-0.0409-0.0714-0.071-0.0592-0.0493-0.0396-0.0741-0.0392
M-score -2.56-2.70-2.74-2.91-2.83-2.69-2.58-2.01-2.69-2.54
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