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CBRE Group Inc (NYSE:CBG)
Beneish M-Score
-2.13 (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 -2.13 signals that the company is a manipulator.

CBG' s Beneish M-Score Range Over the Past 10 Years
Min: -4   Max: -1.96
Current: -2.13

-4
-1.96

During the past 13 years, the highest Beneish M-Score of CBRE Group Inc was -1.96. The lowest was -4.00. And the median was -2.45.


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 * 1.0503+0.528 * 1.2093+0.404 * 1.0642+0.892 * 1.3116+0.115 * 0.9175
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8634+4.679 * -0.0189-0.327 * 1.1059
=-2.13

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $3,314 Mil.
Revenue was 3207.537 + 2846.734 + 3700.242 + 2712.559 = $12,467 Mil.
Gross Profit was 953.304 + 833.121 + 1169.721 + 938.899 = $3,895 Mil.
Total Current Assets was $4,246 Mil.
Total Assets was $9,923 Mil.
Property, Plant and Equipment(Net PPE) was $534 Mil.
Depreciation, Depletion and Amortization(DDA) was $351 Mil.
Selling, General & Admin. Expense(SGA) was $2,815 Mil.
Total Current Liabilities was $3,743 Mil.
Long-Term Debt was $2,625 Mil.
Net Income was 121.668 + 82.167 + 180.043 + 149.123 = $533 Mil.
Non Operating Income was 38.811 + 60.516 + 124.581 + 12.297 = $236 Mil.
Cash Flow from Operations was 118.623 + -328.64 + 509.487 + 184.601 = $484 Mil.
Accounts Receivable was $2,405 Mil.
Revenue was 2390.506 + 2052.503 + 2787.194 + 2275.076 = $9,505 Mil.
Gross Profit was 902.532 + 761.726 + 1080.851 + 846.09 = $3,591 Mil.
Total Current Assets was $3,343 Mil.
Total Assets was $7,460 Mil.
Property, Plant and Equipment(Net PPE) was $484 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $2,486 Mil.
Total Current Liabilities was $2,595 Mil.
Long-Term Debt was $1,734 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)
=(3313.707 / 12467.072) / (2405.431 / 9505.279)
=0.26579673 / 0.25306264
=1.0503

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)
=(3591.199 / 9505.279) / (3895.045 / 12467.072)
=0.377811 / 0.31242661
=1.2093

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 - (4246.081 + 533.575) / 9922.572) / (1 - (3342.956 + 484.032) / 7460.259)
=0.51830473 / 0.48701674
=1.0642

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
=12467.072 / 9505.279
=1.3116

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))
=(277.054 / (277.054 + 484.032)) / (350.907 / (350.907 + 533.575))
=0.36402456 / 0.3967373
=0.9175

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)
=(2815.484 / 12467.072) / (2486.296 / 9505.279)
=0.22583362 / 0.26157002
=0.8634

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)
=((2624.977 + 3742.649) / 9922.572) / ((1734.35 + 2594.774) / 7460.259)
=0.6417314 / 0.58029138
=1.1059

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
=(533.001 - 236.205 - 484.071) / 9922.572
=-0.0189

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 -2.13 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 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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.02911.14221.48240.92731.53281.22890.84331.18680.94131.0503
GMI 1.04481.05611.07331.09721.07431.05471.05291.09331.1481.2093
AQI 1.1110.98290.91930.93440.87710.98941.10630.96261.13941.0642
SGI 1.14031.17331.22131.25961.22071.19481.17021.19951.26061.3116
DEPI 1.00260.9670.90250.84710.88840.91930.97680.93350.9340.9175
SGAI 0.93370.92760.92640.92020.92490.93320.91970.90020.89160.8634
LVGI 0.93010.98791.04960.97950.99720.9211.04071.10761.04291.1059
TATA -0.0367-0.0259-0.0431-0.0415-0.049-0.0522-0.0242-0.0237-0.0173-0.0189
M-score -2.40-2.28-2.05-2.48-2.03-2.29-2.52-2.23-2.25-2.13
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