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Cascade Corporation (NYSE:CASC)
Beneish M-Score
-2.25 (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.

Cascade Corporation has a M-score of -2.48 suggests that the company is not a manipulator.

CASC' s 10-Year Beneish M-Score Range
Min: -4.04   Max: -2.02
Current: -2.25

-4.04
-2.02

During the past 13 years, the highest Beneish M-Score of Cascade Corporation was -2.02. The lowest was -4.04. And the median was -2.58.


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 Cascade Corporation 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 * 0.9722+0.528 * 1.0478+0.404 * 0.9729+0.892 * 1.0049+0.115 * 1.0331
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1007+4.679 * -0.0101-0.327 * 0.8075
=-2.48

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

This Year (Jan13) TTM:Last Year (Jan12) TTM:
Accounts Receivable was $76.0 Mil.
Revenue was 123.57 + 137.193 + 136.41 + 141.235 = $538.4 Mil.
Gross Profit was 34.926 + 42.088 + 42.06 + 43.294 = $162.4 Mil.
Total Current Assets was $228.9 Mil.
Total Assets was $425.7 Mil.
Property, Plant and Equipment(Net PPE) was $80.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.8 Mil.
Selling, General & Admin. Expense(SGA) was $94.8 Mil.
Total Current Liabilities was $50.1 Mil.
Long-Term Debt was $3.5 Mil.
Net Income was 5.714 + 13.291 + 12.639 + 15.208 = $46.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 18.335 + 15.682 + 12.928 + 4.226 = $51.2 Mil.
Accounts Receivable was $77.8 Mil.
Revenue was 125.924 + 138.024 + 135.642 + 136.177 = $535.8 Mil.
Gross Profit was 36.42 + 45.183 + 43.311 + 44.373 = $169.3 Mil.
Total Current Assets was $212.1 Mil.
Total Assets was $394.6 Mil.
Property, Plant and Equipment(Net PPE) was $71.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.0 Mil.
Selling, General & Admin. Expense(SGA) was $85.7 Mil.
Total Current Liabilities was $56.5 Mil.
Long-Term Debt was $5.0 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)
=(75.962 / 538.408) / (77.752 / 535.767)
=0.14108631 / 0.14512279
=0.9722

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)
=(42.088 / 535.767) / (34.926 / 538.408)
=0.31597131 / 0.30157056
=1.0478

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 - (228.908 + 80.22) / 425.672) / (1 - (212.087 + 71.439) / 394.559)
=0.27378827 / 0.28141038
=0.9729

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
=538.408 / 535.767
=1.0049

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))
=(9.982 / (9.982 + 71.439)) / (10.802 / (10.802 + 80.22))
=0.12259736 / 0.11867461
=1.0331

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)
=(94.833 / 538.408) / (85.736 / 535.767)
=0.17613594 / 0.16002479
=1.1007

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)
=((3.5 + 50.051) / 425.672) / ((4.95 + 56.518) / 394.559)
=0.12580344 / 0.15578912
=0.8075

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
=(46.852 - 0 - 51.171) / 425.672
=-0.0101

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.

Cascade Corporation has a M-score of -2.48 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.

Cascade Corporation Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
DSRI 1.05940.94110.81131.05271.06540.72441.33981.00180.89450.9722
GMI 1.07151.00571.0081.01151.02111.1031.230.75530.94741.0478
AQI 0.91760.94590.96181.24980.97360.7791.2730.95720.92860.9729
SGI 1.15041.29541.1681.06291.16540.95720.58851.30381.30721.0049
DEPI 0.97740.83660.98311.14321.03371.00031.03271.09151.07211.0331
SGAI 0.93230.8980.90280.98110.95090.99551.43680.8110.85321.1104
LVGI 0.86310.87340.81551.19991.42630.96640.84370.8250.62160.8075
TATA -0.027-0.0294-0.0232-0.02930.0147-0.1002-0.2458-0.01770.0224-0.0101
M-score -2.36-2.39-2.55-2.45-2.33-3.26-3.47-2.34-2.10-2.49

Cascade Corporation Quarterly Data

Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13
DSRI 1.17841.00181.09230.97110.84210.89450.82180.8740.9470.9722
GMI 0.80990.75530.82210.86180.91020.94740.9921.01481.04381.0478
AQI 0.98910.95720.9090.89340.9370.92860.96660.98770.98740.9729
SGI 1.15581.30381.35861.38471.36861.30721.19751.10631.03951.0049
DEPI 0.98371.09151.11481.08361.04591.07211.02880.99361.09971.0331
SGAI 0.92510.8110.80810.80660.83370.86080.93130.96461.00711.1007
LVGI 0.94920.8250.88990.87430.71470.62160.60660.61040.64460.8075
TATA -0.0512-0.01770.01560.0220.0220.02240.0042-0.0036-0.0089-0.0101
M-score -2.49-2.34-2.05-2.09-2.14-2.10-2.32-2.38-2.39-2.48
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