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CBRE Group Inc (NYSE:CBG)
Beneish M-Score
-2.33 (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 -2.34 suggests that the company is not a manipulator.

CBG' s 10-Year Beneish M-Score Range
Min: -2.98   Max: -1.86
Current: -2.33

-2.98
-1.86

During the past 13 years, the highest Beneish M-Score of CBRE Group Inc was -1.86. The lowest was -2.98. And the median was -2.43.


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 * 1.1281+0.528 * 1.0561+0.404 * 0.9829+0.892 * 1.1733+0.115 * 0.967
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9276+4.679 * -0.0348-0.327 * 0.9879
=-2.34

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $2,413 Mil.
Revenue was 2126.806 + 1860.842 + 2233.851 + 1733.866 = $7,955 Mil.
Gross Profit was 812.333 + 699.382 + 956.853 + 701.518 = $3,170 Mil.
Total Current Assets was $3,338 Mil.
Total Assets was $7,472 Mil.
Property, Plant and Equipment(Net PPE) was $455 Mil.
Depreciation, Depletion and Amortization(DDA) was $229 Mil.
Selling, General & Admin. Expense(SGA) was $2,230 Mil.
Total Current Liabilities was $2,876 Mil.
Long-Term Debt was $1,832 Mil.
Net Income was 105.464 + 67.663 + 114.646 + 94.444 = $382 Mil.
Non Operating Income was 15.628 + 19.801 + 151.543 + 18.472 = $205 Mil.
Cash Flow from Operations was 45.982 + -269.966 + 510.468 + 149.969 = $436 Mil.
Accounts Receivable was $1,823 Mil.
Revenue was 1742.014 + 1475.063 + 2005.846 + 1557.147 = $6,780 Mil.
Gross Profit was 723.187 + 613.847 + 874.276 + 641.902 = $2,853 Mil.
Total Current Assets was $2,799 Mil.
Total Assets was $6,348 Mil.
Property, Plant and Equipment(Net PPE) was $370 Mil.
Depreciation, Depletion and Amortization(DDA) was $177 Mil.
Selling, General & Admin. Expense(SGA) was $2,049 Mil.
Total Current Liabilities was $2,133 Mil.
Long-Term Debt was $1,915 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)
=(2413.023 / 7955.365) / (1823.038 / 6780.07)
=0.30332021 / 0.26888188
=1.1281

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)
=(699.382 / 6780.07) / (812.333 / 7955.365)
=0.42082338 / 0.39848404
=1.0561

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 - (3338.471 + 455.322) / 7471.771) / (1 - (2799.225 + 369.697) / 6348.288)
=0.49224983 / 0.50082258
=0.9829

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
=7955.365 / 6780.07
=1.1733

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))
=(176.864 / (176.864 + 369.697)) / (229.016 / (229.016 + 455.322))
=0.32359426 / 0.33465334
=0.967

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)
=(2229.908 / 7955.365) / (2048.814 / 6780.07)
=0.28030241 / 0.30218184
=0.9276

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)
=((1831.641 + 2875.964) / 7471.771) / ((1915.455 + 2133.096) / 6348.288)
=0.6300521 / 0.63773903
=0.9879

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
=(382.217 - 205.444 - 436.453) / 7471.771
=-0.0348

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 -2.34 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.10371.05370.91411.13791.26591.07360.8130.72720.73751.1281
GMI 1.00420.98390.98550.97440.98381.00771.00991.02051.04481.0561
AQI 0.96691.03091.09520.91680.90080.95511.04011.22071.1110.9829
SGI 1.15091.13111.08261.10311.09371.0851.10921.1031.14031.1733
DEPI 1.08270.96040.93750.91261.02111.04371.02121.05561.00260.967
SGAI 1.02751.03381.03030.96450.95440.94610.92580.95250.93370.9276
LVGI 0.99660.98060.94560.96360.94430.91250.87060.90480.93010.9879
TATA -0.0088-0.0253-0.002-0.0061-0.0339-0.0428-0.0487-0.0804-0.0531-0.0348
M-score -2.30-2.43-2.46-2.33-2.33-2.51-2.70-2.87-2.74-2.34
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