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CBRE Group Inc (NYSE:CBG)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

CBG' s 10-Year Beneish M-Score Range
Min: -3.6   Max: -1.97
Current: -2.46

-3.6
-1.97

During the past 13 years, the highest Beneish M-Score of CBRE Group Inc was -1.97. The lowest was -3.60. And the median was -2.47.


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 * 0.9273+0.528 * 1.0972+0.404 * 0.9063+0.892 * 1.2596+0.115 * 0.8471
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9202+4.679 * -0.0351-0.327 * 0.9674
=-2.46

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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 $3,525 Mil.
Total Assets was $7,647 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 $2,876 Mil.
Long-Term Debt was $1,852 Mil.
Net Income was 204.277 + 107.099 + 105.464 + 67.663 = $485 Mil.
Non Operating Income was 35.281 + 20.1 + 15.628 + 19.801 = $91 Mil.
Cash Flow from Operations was 593.302 + 292.462 + 45.982 + -269.966 = $662 Mil.
Accounts Receivable was $1,486 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.



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)
=(1736.229 / 9049.918) / (1486.489 / 7184.794)
=0.19185025 / 0.20689375
=0.9273

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)
=(846.09 / 7184.794) / (1080.851 / 9049.918)
=0.41690896 / 0.37996543
=1.0972

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 - (3524.504 + 497.926) / 7647.105) / (1 - (2879.812 + 458.596) / 6998.414)
=0.4739931 / 0.52297649
=0.9063

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
=9049.918 / 7184.794
=1.2596

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))
=(191.27 / (191.27 + 458.596)) / (265.101 / (265.101 + 497.926))
=0.29432221 / 0.34743331
=0.8471

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)
=(2438.96 / 9049.918) / (2104.31 / 7184.794)
=0.26950078 / 0.29288383
=0.9202

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)
=((1852.416 + 2875.634) / 7647.105) / ((1866.89 + 2605.74) / 6998.414)
=0.61827973 / 0.63909194
=0.9674

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
=(484.503 - 90.81 - 661.78) / 7647.105
=-0.0351

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 -2.46 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.01621.44410.82060.81791.27040.98681.04611.00831.06720.9273
GMI 0.97270.94641.01491.09371.04110.97881.01620.97441.02051.0972
AQI 0.88481.16591.01840.93750.93461.01380.89560.91681.22070.9063
SGI 1.20661.26241.49660.850.81221.22791.15451.10311.1031.2596
DEPI 1.22180.84010.90791.08770.92660.97491.29240.91261.05560.8471
SGAI 0.93141.011.01921.03360.9750.94631.01440.96450.95250.9202
LVGI 0.96811.16230.96711.17481.00350.93660.98570.96360.90480.9674
TATA -0.0616-0.0201-0.0496-0.168-0.024-0.0829-0.0318-0.0061-0.0643-0.0351
M-score -2.58-1.97-2.42-3.60-2.52-2.66-2.45-2.45-2.48-2.46

CBRE Group Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.00831.02541.03081.01771.06721.02911.14221.03430.92731.5149
GMI 0.97440.98381.00771.00991.02051.04481.05611.07331.09721.0743
AQI 0.91680.90080.95511.04011.22071.1110.98290.91930.90630.9988
SGI 1.10311.09371.0851.10921.1031.14031.17331.22131.25961.2207
DEPI 0.91261.02111.04371.02121.05561.00260.9670.90250.84710.9447
SGAI 0.96450.95440.94610.92580.95250.93370.92760.92640.92020.9249
LVGI 0.96360.94430.91250.87060.90480.93010.98791.04960.96740.9972
TATA -0.0061-0.0339-0.0428-0.0487-0.0643-0.0367-0.0197-0.037-0.0351-0.0665
M-score -2.45-2.55-2.55-2.52-2.48-2.40-2.25-2.43-2.46-2.07
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