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CBRE Group Inc (NYSE:CBG)
Beneish M-Score
-2.52 (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.

CBRE Group Inc has a M-score of -2.52 suggests that the company is not a manipulator.

CBG' s Beneish M-Score Range Over the Past 10 Years
Min: -4   Max: -1.97
Current: -2.52

-4
-1.97

During the past 13 years, the highest Beneish M-Score of CBRE Group Inc was -1.97. The lowest was -4.00. And the median was -2.48.


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 CBRE Group 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 * 0.8433+0.528 * 1.0529+0.404 * 1.1063+0.892 * 1.1702+0.115 * 0.9768
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9197+4.679 * -0.0242-0.327 * 1.0407
=-2.52

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $2,275 Mil.
Revenue was 2712.559 + 2390.506 + 2052.503 + 2787.194 = $9,943 Mil.
Gross Profit was 938.899 + 902.532 + 761.726 + 1080.851 = $3,684 Mil.
Total Current Assets was $3,980 Mil.
Total Assets was $9,555 Mil.
Property, Plant and Equipment(Net PPE) was $504 Mil.
Depreciation, Depletion and Amortization(DDA) was $285 Mil.
Selling, General & Admin. Expense(SGA) was $2,512 Mil.
Total Current Liabilities was $3,604 Mil.
Long-Term Debt was $2,684 Mil.
Net Income was 149.123 + 125.029 + 92.937 + 204.277 = $571 Mil.
Non Operating Income was 12.297 + 5.624 + 13.853 + 35.281 = $67 Mil.
Cash Flow from Operations was 184.601 + 137.659 + -179.85 + 593.302 = $736 Mil.
Accounts Receivable was $2,305 Mil.
Revenue was 2275.076 + 2126.806 + 1860.842 + 2233.851 = $8,497 Mil.
Gross Profit was 846.09 + 812.333 + 699.382 + 956.853 = $3,315 Mil.
Total Current Assets was $3,461 Mil.
Total Assets was $7,530 Mil.
Property, Plant and Equipment(Net PPE) was $456 Mil.
Depreciation, Depletion and Amortization(DDA) was $249 Mil.
Selling, General & Admin. Expense(SGA) was $2,334 Mil.
Total Current Liabilities was $2,677 Mil.
Long-Term Debt was $2,084 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)
=(2275.025 / 9942.762) / (2305.467 / 8496.575)
=0.22881218 / 0.27134075
=0.8433

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)
=(902.532 / 8496.575) / (938.899 / 9942.762)
=0.39011696 / 0.37052159
=1.0529

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 - (3979.647 + 503.666) / 9555.464) / (1 - (3461.037 + 455.859) / 7529.954)
=0.53081159 / 0.47982471
=1.1063

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
=9942.762 / 8496.575
=1.1702

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))
=(248.651 / (248.651 + 455.859)) / (284.942 / (284.942 + 503.666))
=0.35294176 / 0.36132274
=0.9768

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)
=(2512.175 / 9942.762) / (2334.319 / 8496.575)
=0.2526637 / 0.27473647
=0.9197

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)
=((2683.718 + 3604.263) / 9555.464) / ((2084.213 + 2677.009) / 7529.954)
=0.65805083 / 0.63230426
=1.0407

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
=(571.366 - 67.055 - 735.712) / 9555.464
=-0.0242

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.

CBRE Group Inc has a M-score of -2.52 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.

CBRE Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.44410.82060.81791.27040.98681.04611.00831.06720.92732.0353
GMI 0.94641.01491.09371.04110.97881.01620.97441.02051.09721.0933
AQI 1.16591.01840.93750.93461.01380.89560.91681.22070.90631.0792
SGI 1.26241.49660.850.81221.22791.15451.10311.1031.25961.1995
DEPI 0.84010.90791.08770.92660.97491.29240.91261.05560.84710.9335
SGAI 1.011.01921.03360.9750.94631.01440.96450.95250.92020.9002
LVGI 1.16230.96711.17481.00350.93660.98570.96360.90480.96741.1214
TATA -0.0201-0.0496-0.168-0.024-0.0829-0.0318-0.0061-0.0643-0.03510.0355
M-score -1.97-2.42-3.60-2.52-2.66-2.45-2.45-2.48-2.46-1.13

CBRE Group Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.01771.06721.02911.14221.48240.92731.53281.22890.84332.0353
GMI 1.00991.02051.04481.05611.07331.09721.07431.05471.05291.0933
AQI 1.04011.22071.1110.98290.91930.90630.87710.98941.10631.0792
SGI 1.10921.1031.14031.17331.22131.25961.22071.19481.17021.1995
DEPI 1.02121.05561.00260.9670.90250.84710.88840.91930.97680.9335
SGAI 0.92580.95250.93370.92760.92640.92020.92490.93320.91970.9002
LVGI 0.87060.90480.93010.98791.04960.96740.99720.9211.04071.1214
TATA -0.0487-0.0643-0.0367-0.0197-0.037-0.0351-0.0429-0.0522-0.02420.0225
M-score -2.52-2.48-2.40-2.25-2.02-2.46-2.00-2.29-2.52-1.19
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