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CBRE Group Inc (NYSE:CBG)
Beneish M-Score
-1.85 (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 -1.85 signals that the company is a manipulator.

CBG' s Beneish M-Score Range Over the Past 10 Years
Min: -4.05   Max: -1.43
Current: -1.85

-4.05
-1.43

During the past 13 years, the highest Beneish M-Score of CBRE Group Inc was -1.43. The lowest was -4.05. And the median was -2.41.


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 * 1.3941+0.528 * 1.2311+0.404 * 0.9039+0.892 * 1.3023+0.115 * 0.9012
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8788+4.679 * -0.0202-0.327 * 1.0127
=-1.85

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $4,130 Mil.
Revenue was 3193.487 + 3207.537 + 2846.734 + 3700.242 = $12,948 Mil.
Gross Profit was 940.704 + 953.304 + 833.121 + 1169.721 = $3,897 Mil.
Total Current Assets was $5,055 Mil.
Total Assets was $10,777 Mil.
Property, Plant and Equipment(Net PPE) was $551 Mil.
Depreciation, Depletion and Amortization(DDA) was $369 Mil.
Selling, General & Admin. Expense(SGA) was $2,875 Mil.
Total Current Liabilities was $4,567 Mil.
Long-Term Debt was $2,615 Mil.
Net Income was 104.163 + 121.668 + 82.167 + 180.043 = $488 Mil.
Non Operating Income was 26.028 + 38.811 + 60.516 + 124.581 = $250 Mil.
Cash Flow from Operations was 156.828 + 118.623 + -328.64 + 509.487 = $456 Mil.
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.



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)
=(4130.115 / 12948) / (2275.025 / 9942.762)
=0.31897706 / 0.22881218
=1.3941

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)
=(3684.008 / 9942.762) / (3896.85 / 12948)
=0.37052159 / 0.30096154
=1.2311

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 - (5055.477 + 550.779) / 10776.77) / (1 - (3979.647 + 503.666) / 9555.464)
=0.47978327 / 0.53081159
=0.9039

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
=12948 / 9942.762
=1.3023

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))
=(284.942 / (284.942 + 503.666)) / (368.585 / (368.585 + 550.779))
=0.36132274 / 0.40091302
=0.9012

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)
=(2875.109 / 12948) / (2512.175 / 9942.762)
=0.22205043 / 0.2526637
=0.8788

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)
=((2614.898 + 4566.864) / 10776.77) / ((2683.718 + 3604.263) / 9555.464)
=0.66641136 / 0.65805083
=1.0127

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
=(488.041 - 249.936 - 456.298) / 10776.77
=-0.0202

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 -1.85 signals that the company is likely to 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.

CBRE Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.44410.82061.17490.88440.98681.04611.00831.06720.92732.0638
GMI 0.94641.01491.09371.04110.97881.01620.97441.02051.09721.0933
AQI 1.16591.01840.93750.93461.01380.89560.91681.22070.93440.9626
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 1.16230.96711.30680.90220.93660.98570.96360.90480.97951.1076
TATA -0.0191-0.0438-0.168-0.024-0.0829-0.0318-0.0061-0.0643-0.0354-0.0237
M-score -1.96-2.39-3.31-2.84-2.66-2.45-2.45-2.48-2.45-1.43

CBRE Group Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.14221.48240.92731.53281.22890.84332.06380.94131.05031.3941
GMI 1.05611.07331.09721.07431.05471.05291.09331.1481.20931.2311
AQI 0.98290.91930.93440.87710.98941.10630.96261.13941.06420.9039
SGI 1.17331.22131.25961.22071.19481.17021.19951.26061.31161.3023
DEPI 0.9670.90250.84710.88840.91930.97680.93350.9340.91750.9012
SGAI 0.92760.92640.92020.92490.93320.91970.90020.89160.86340.8788
LVGI 0.98791.04960.97950.99720.9211.04071.10761.04291.10591.0127
TATA -0.0259-0.0431-0.0415-0.049-0.0522-0.0242-0.0237-0.0173-0.0189-0.0202
M-score -2.28-2.05-2.48-2.03-2.29-2.52-1.43-2.25-2.13-1.85
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