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CBRE Group Inc (NYSE:CBG)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

CBG' s 10-Year Beneish M-Score Range
Min: -3.57   Max: -2.21
Current: -2.93

-3.57
-2.21

During the past 13 years, the highest Beneish M-Score of CBRE Group Inc was -2.21. The lowest was -3.57. And the median was -2.37.


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 * 0.7272+0.528 * 1.0205+0.404 * 1.2207+0.892 * 1.103+0.115 * 1.0556
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9525+4.679 * -0.0926-0.327 * 0.9048
=-2.93

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,868 Mil.
Revenue was 2233.851 + 1733.866 + 1742.014 + 1475.063 = $7,185 Mil.
Gross Profit was 956.853 + 701.518 + 723.187 + 613.847 = $2,995 Mil.
Total Current Assets was $2,880 Mil.
Total Assets was $6,998 Mil.
Property, Plant and Equipment(Net PPE) was $459 Mil.
Depreciation, Depletion and Amortization(DDA) was $191 Mil.
Selling, General & Admin. Expense(SGA) was $2,104 Mil.
Total Current Liabilities was $2,606 Mil.
Long-Term Debt was $1,867 Mil.
Net Income was 114.646 + 94.444 + 69.902 + 37.546 = $317 Mil.
Non Operating Income was 151.543 + 18.472 + 50.792 + -1.137 = $220 Mil.
Cash Flow from Operations was 510.468 + 149.969 + 164.557 + -79.886 = $745 Mil.
Accounts Receivable was $2,329 Mil.
Revenue was 2005.846 + 1557.147 + 1601.117 + 1349.989 = $6,514 Mil.
Gross Profit was 874.276 + 641.902 + 692.974 + 562.433 = $2,772 Mil.
Total Current Assets was $4,085 Mil.
Total Assets was $7,810 Mil.
Property, Plant and Equipment(Net PPE) was $379 Mil.
Depreciation, Depletion and Amortization(DDA) was $171 Mil.
Selling, General & Admin. Expense(SGA) was $2,003 Mil.
Total Current Liabilities was $2,972 Mil.
Long-Term Debt was $2,544 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)
=(1868.034 / 7184.794) / (2329.01 / 6514.099)
=0.25999827 / 0.35753371
=0.7272

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)
=(701.518 / 6514.099) / (956.853 / 7184.794)
=0.4254748 / 0.41690896
=1.0205

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 - (2879.812 + 458.596) / 6998.414) / (1 - (4084.55 + 379.176) / 7809.542)
=0.52297649 / 0.42842666
=1.2207

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
=7184.794 / 6514.099
=1.103

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))
=(170.905 / (170.905 + 379.176)) / (191.27 / (191.27 + 458.596))
=0.31069061 / 0.29432221
=1.0556

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)
=(2104.31 / 7184.794) / (2002.914 / 6514.099)
=0.29288383 / 0.30747368
=0.9525

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)
=((1866.89 + 2605.74) / 6998.414) / ((2543.707 + 2972.293) / 7809.542)
=0.63909194 / 0.70631543
=0.9048

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
=(316.538 - 219.67 - 745.108) / 6998.414
=-0.0926

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 -2.93 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.21841.12741.10371.05370.91411.13791.26591.07360.8130.7272
GMI 1.01331.01621.00420.98390.98550.97440.98381.00771.00991.0205
AQI 0.89030.89560.96691.03091.09520.91680.90080.95511.04011.2207
SGI 1.21691.15451.15091.13111.08261.10311.09371.0851.10921.103
DEPI 0.88271.29241.08270.96040.93750.91261.02111.04371.02121.0556
SGAI 0.98921.01441.02751.03381.03030.96450.95440.94610.92580.9525
LVGI 0.96010.98570.99660.98060.94560.96360.94430.91250.87060.9048
TATA -0.0267-0.0318-0.0088-0.0253-0.002-0.0061-0.0339-0.0563-0.0625-0.0926
M-score -2.25-2.37-2.30-2.43-2.46-2.33-2.33-2.57-2.77-2.93
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