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CBRE Group Inc (NYSE:CBG)
Beneish M-Score
-2.24 (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 -2.24 suggests that the company is not a manipulator.

CBG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.6   Max: -1.96
Current: -2.24

-3.6
-1.96

During the past 13 years, the highest Beneish M-Score of CBRE Group Inc was -1.96. The lowest was -3.60. 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 * 1.1868+0.528 * 1.0933+0.404 * 0.9626+0.892 * 1.1995+0.115 * 0.9335
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9002+4.679 * -0.025-0.327 * 1.1076
=-2.24

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $2,472 Mil.
Revenue was 3700.242 + 2712.559 + 2390.506 + 2052.503 = $10,856 Mil.
Gross Profit was 1169.721 + 938.899 + 902.532 + 761.726 = $3,773 Mil.
Total Current Assets was $5,305 Mil.
Total Assets was $11,018 Mil.
Property, Plant and Equipment(Net PPE) was $530 Mil.
Depreciation, Depletion and Amortization(DDA) was $314 Mil.
Selling, General & Admin. Expense(SGA) was $2,634 Mil.
Total Current Liabilities was $4,994 Mil.
Long-Term Debt was $2,645 Mil.
Net Income was 180.043 + 149.123 + 125.029 + 92.937 = $547 Mil.
Non Operating Income was 124.581 + 12.297 + 19.596 + 13.853 = $170 Mil.
Cash Flow from Operations was 509.487 + 184.601 + 137.659 + -179.85 = $652 Mil.
Accounts Receivable was $1,736 Mil.
Revenue was 2787.194 + 2275.076 + 2126.806 + 1860.842 = $9,050 Mil.
Gross Profit was 1080.851 + 846.09 + 812.333 + 699.382 = $3,439 Mil.
Total Current Assets was $3,372 Mil.
Total Assets was $7,568 Mil.
Property, Plant and Equipment(Net PPE) was $498 Mil.
Depreciation, Depletion and Amortization(DDA) was $265 Mil.
Selling, General & Admin. Expense(SGA) was $2,439 Mil.
Total Current Liabilities was $2,929 Mil.
Long-Term Debt was $1,809 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)
=(2471.74 / 10855.81) / (1736.229 / 9049.918)
=0.22768821 / 0.19185025
=1.1868

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)
=(938.899 / 9049.918) / (1169.721 / 10855.81)
=0.37996543 / 0.34754459
=1.0933

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 - (5305.223 + 529.823) / 11017.943) / (1 - (3371.769 + 497.926) / 7568.01)
=0.47040514 / 0.48867734
=0.9626

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
=10855.81 / 9049.918
=1.1995

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))
=(265.101 / (265.101 + 497.926)) / (314.096 / (314.096 + 529.823))
=0.34743331 / 0.37218738
=0.9335

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)
=(2633.609 / 10855.81) / (2438.96 / 9049.918)
=0.24259903 / 0.26950078
=0.9002

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)
=((2645.111 + 4994.157) / 11017.943) / ((1808.605 + 2928.765) / 7568.01)
=0.69334793 / 0.62597301
=1.1076

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
=(547.132 - 170.327 - 651.897) / 11017.943
=-0.025

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 -2.24 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 1.44410.82060.81791.27040.98681.04611.00831.06720.92731.1868
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 1.16230.96711.17481.00350.93660.98570.96360.90480.97951.1076
TATA -0.0191-0.0438-0.168-0.024-0.0829-0.0318-0.0061-0.0643-0.0354-0.0237
M-score -1.96-2.39-3.60-2.52-2.66-2.45-2.45-2.48-2.45-2.23

CBRE Group Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.06721.02911.14221.48240.92731.53281.22890.84331.18680.9194
GMI 1.02051.04481.05611.07331.09721.07431.05471.05291.09331.148
AQI 1.22071.1110.98290.91930.93440.87710.98941.10630.96261.2409
SGI 1.1031.14031.17331.22131.25961.22071.19481.17021.19951.2606
DEPI 1.05561.00260.9670.90250.84710.88840.91930.97680.93350.934
SGAI 0.95250.93370.92760.92640.92020.92490.93320.91970.90020.8892
LVGI 0.90480.93010.98791.04960.97950.99720.9211.04071.10761.0429
TATA -0.0643-0.0367-0.0259-0.0431-0.0415-0.049-0.054-0.0257-0.025-0.0521
M-score -2.48-2.40-2.28-2.05-2.48-2.03-2.30-2.52-2.24-2.39
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