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CBRE Group Inc (NYSE:CBG)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

CBG' s 10-Year Beneish M-Score Range
Min: -2.91   Max: -1.84
Current: -2.5

-2.91
-1.84

During the past 13 years, the highest Beneish M-Score of CBRE Group Inc was -1.84. The lowest was -2.91. And the median was -2.46.


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 * 1.0343+0.528 * 1.0733+0.404 * 0.9193+0.892 * 1.2213+0.115 * 0.9025
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9264+4.679 * -0.0519-0.327 * 1.0496
=-2.50

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,609 Mil.
Revenue was 2275.076 + 2126.806 + 1860.842 + 2233.851 = $8,497 Mil.
Gross Profit was 846.09 + 812.333 + 699.382 + 956.853 = $3,315 Mil.
Total Current Assets was $3,461 Mil.
Total Assets was $7,530 Mil.
Property, Plant and Equipment(Net PPE) was $456 Mil.
Depreciation, Depletion and Amortization(DDA) was $249 Mil.
Selling, General & Admin. Expense(SGA) was $2,334 Mil.
Total Current Liabilities was $2,677 Mil.
Long-Term Debt was $2,084 Mil.
Net Income was 107.099 + 105.464 + 67.663 + 114.646 = $395 Mil.
Non Operating Income was 20.1 + 15.628 + 19.801 + 151.543 = $207 Mil.
Cash Flow from Operations was 292.462 + 45.982 + -269.966 + 510.468 = $579 Mil.
Accounts Receivable was $1,273 Mil.
Revenue was 1733.866 + 1742.014 + 1475.063 + 2005.846 = $6,957 Mil.
Gross Profit was 701.518 + 723.187 + 613.847 + 874.276 = $2,913 Mil.
Total Current Assets was $2,559 Mil.
Total Assets was $6,177 Mil.
Property, Plant and Equipment(Net PPE) was $394 Mil.
Depreciation, Depletion and Amortization(DDA) was $184 Mil.
Selling, General & Admin. Expense(SGA) was $2,063 Mil.
Total Current Liabilities was $1,843 Mil.
Long-Term Debt was $1,879 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)
=(1608.628 / 8496.575) / (1273.38 / 6956.789)
=0.18932664 / 0.18304134
=1.0343

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)
=(812.333 / 6956.789) / (846.09 / 8496.575)
=0.41870294 / 0.39011696
=1.0733

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 - (3461.037 + 455.859) / 7529.954) / (1 - (2558.96 + 394.263) / 6177.335)
=0.47982471 / 0.52192604
=0.9193

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
=8496.575 / 6956.789
=1.2213

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))
=(184.286 / (184.286 + 394.263)) / (248.651 / (248.651 + 455.859))
=0.31853136 / 0.35294176
=0.9025

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)
=(2334.319 / 8496.575) / (2063.067 / 6956.789)
=0.27473647 / 0.29655449
=0.9264

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)
=((2084.213 + 2677.009) / 7529.954) / ((1878.521 + 1842.727) / 6177.335)
=0.63230426 / 0.60240346
=1.0496

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
=(394.872 - 207.072 - 578.946) / 7529.954
=-0.0519

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 -2.50 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 0.99631.3160.82060.81791.27040.98681.04611.00831.0672
GMI 0.99211.03851.01491.09371.04110.97881.01620.97441.0205
AQI 0.87971.21470.98270.93790.87691.08050.89560.91681.2207
SGI 1.23071.38531.49660.850.81221.22791.15451.10311.103
DEPI 1.22180.84010.90791.01371.56620.61891.29240.91261.0556
SGAI 0.91320.92031.01921.03360.9750.94631.01440.96450.9525
LVGI 0.96531.16211.0171.11741.00350.93660.98570.96360.9048
TATA -0.0616-0.0101-0.04960.0734-0.024-0.0829-0.0318-0.0061-0.0804
M-score -2.57-1.84-2.45-2.46-2.47-2.67-2.45-2.45-2.56

CBRE Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.99761.0441.00831.02541.03081.01771.06721.02911.14221.0343
GMI 0.98390.98550.97440.98381.00771.00991.02051.04481.05611.0733
AQI 1.03091.09520.91680.90080.95511.04011.22071.1110.98290.9193
SGI 1.13111.08261.10311.09371.0851.10921.1031.14031.17331.2213
DEPI 0.96040.93750.91261.02111.04371.02121.05561.00260.9670.9025
SGAI 1.03381.03030.96450.95440.94610.92580.95250.93370.92760.9264
LVGI 0.98060.94560.96360.94430.91250.87060.90480.93010.98791.0496
TATA -0.0253-0.0003-0.0061-0.0339-0.0428-0.0487-0.0804-0.0531-0.0348-0.0519
M-score -2.48-2.33-2.45-2.55-2.55-2.52-2.56-2.47-2.32-2.50
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