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CBRE Group Inc (NYSE:CBG)
Beneish M-Score
-2.80 (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 -2.80 suggests that the company is not a manipulator.

CBG' s 10-Year Beneish M-Score Range
Min: -3.87   Max: -1.95
Current: -2.8

-3.87
-1.95

During the past 13 years, the highest Beneish M-Score of CBRE Group Inc was -1.95. The lowest was -3.87. And the median was -2.46.


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 * 0.7375+0.528 * 1.0448+0.404 * 1.111+0.892 * 1.1403+0.115 * 1.0026
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9337+4.679 * -0.0656-0.327 * 0.9301
=-2.80

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1,777 Mil.
Revenue was 1860.842 + 2233.851 + 1733.866 + 1742.014 = $7,571 Mil.
Gross Profit was 699.382 + 956.853 + 701.518 + 723.187 = $3,081 Mil.
Total Current Assets was $2,762 Mil.
Total Assets was $6,843 Mil.
Property, Plant and Equipment(Net PPE) was $447 Mil.
Depreciation, Depletion and Amortization(DDA) was $210 Mil.
Selling, General & Admin. Expense(SGA) was $2,163 Mil.
Total Current Liabilities was $2,380 Mil.
Long-Term Debt was $1,856 Mil.
Net Income was 67.663 + 114.646 + 94.444 + 69.902 = $347 Mil.
Non Operating Income was 19.801 + 151.543 + 18.472 + 50.792 = $241 Mil.
Cash Flow from Operations was -269.966 + 510.468 + 149.969 + 164.557 = $555 Mil.
Accounts Receivable was $2,113 Mil.
Revenue was 1475.063 + 2005.846 + 1557.147 + 1601.117 = $6,639 Mil.
Gross Profit was 613.847 + 874.276 + 641.902 + 692.974 = $2,823 Mil.
Total Current Assets was $3,233 Mil.
Total Assets was $6,888 Mil.
Property, Plant and Equipment(Net PPE) was $362 Mil.
Depreciation, Depletion and Amortization(DDA) was $171 Mil.
Selling, General & Admin. Expense(SGA) was $2,032 Mil.
Total Current Liabilities was $2,454 Mil.
Long-Term Debt was $2,131 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)
=(1777.099 / 7570.573) / (2113.286 / 6639.173)
=0.23473771 / 0.31830561
=0.7375

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)
=(956.853 / 6639.173) / (699.382 / 7570.573)
=0.42520341 / 0.40696259
=1.0448

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 - (2762.237 + 446.66) / 6843.358) / (1 - (3232.833 + 362.421) / 6887.64)
=0.53109321 / 0.47801366
=1.111

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
=7570.573 / 6639.173
=1.1403

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))
=(170.985 / (170.985 + 362.421)) / (209.936 / (209.936 + 446.66))
=0.3205532 / 0.3197339
=1.0026

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)
=(2163.164 / 7570.573) / (2031.733 / 6639.173)
=0.28573319 / 0.306022
=0.9337

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)
=((1856.479 + 2379.614) / 6843.358) / ((2130.621 + 2453.535) / 6887.64)
=0.61900795 / 0.66556266
=0.9301

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
=(346.655 - 240.608 - 555.028) / 6843.358
=-0.0656

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 -2.80 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.15081.05550.90750.84661.60420.92581.12741.13790.7272
GMI 0.97270.94641.01491.09371.04110.97881.01620.97441.0205
AQI 0.88481.16591.01840.93750.93461.01380.89560.91681.2207
SGI 1.20661.26241.49660.850.81221.22791.15451.10311.103
DEPI 1.22180.84010.90791.08770.92660.97491.29240.91261.0556
SGAI 0.93141.011.01921.03360.9750.94631.01440.96450.9525
LVGI 0.96811.16230.96711.17481.00350.93660.98570.96360.9048
TATA -0.0616-0.0201-0.0496-0.168-0.024-0.0829-0.0318-0.0061-0.0804
M-score -2.46-2.32-2.34-3.57-2.21-2.71-2.37-2.33-2.87

CBRE Group Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.12741.10371.05370.91411.13791.26591.07360.8130.72720.7375
GMI 1.01621.00420.98390.98550.97440.98381.00771.00991.02051.0448
AQI 0.89560.96691.03091.09520.91680.90080.95511.04011.22071.111
SGI 1.15451.15091.13111.08261.10311.09371.0851.10921.1031.1403
DEPI 1.29241.08270.96040.93750.91261.02111.04371.02121.05561.0026
SGAI 1.01441.02751.03381.03030.96450.95440.94610.92580.95250.9337
LVGI 0.98570.99660.98060.94560.96360.94430.91250.87060.90480.9301
TATA -0.0318-0.0088-0.0253-0.002-0.0061-0.0339-0.0563-0.0625-0.0926-0.0656
M-score -2.37-2.30-2.43-2.46-2.33-2.33-2.57-2.77-2.93-2.80
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