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Clearfield Inc (NAS:CLFD)
Beneish M-Score
-2.03 (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.

Clearfield Inc has a M-score of -2.03 signals that the company is a manipulator.

CLFD' s 10-Year Beneish M-Score Range
Min: -2600.9   Max: 152.1
Current: -2.03

-2600.9
152.1

During the past 13 years, the highest Beneish M-Score of Clearfield Inc was 152.10. The lowest was -2600.90. And the median was -2.42.


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 Clearfield 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 * 1.5603+0.528 * 1.05+0.404 * 0.7647+0.892 * 0.8887+0.115 * 1.5538
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1899+4.679 * -0.01-0.327 * 0.6524
=-2.03

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $4.76 Mil.
Revenue was 12.371 + 13.987 + 14.321 + 14.363 = $55.04 Mil.
Gross Profit was 4.753 + 5.743 + 5.897 + 6.043 = $22.44 Mil.
Total Current Assets was $37.81 Mil.
Total Assets was $53.03 Mil.
Property, Plant and Equipment(Net PPE) was $5.26 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.94 Mil.
Selling, General & Admin. Expense(SGA) was $16.83 Mil.
Total Current Liabilities was $4.50 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.289 + 1.069 + 1.049 + 1.175 = $3.58 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.841 + 1.074 + -0.21 + 1.406 = $4.11 Mil.
Accounts Receivable was $3.43 Mil.
Revenue was 13.214 + 16.148 + 19.039 + 13.535 = $61.94 Mil.
Gross Profit was 5.721 + 6.938 + 8.221 + 5.629 = $26.51 Mil.
Total Current Assets was $36.29 Mil.
Total Assets was $50.47 Mil.
Property, Plant and Equipment(Net PPE) was $1.78 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.55 Mil.
Selling, General & Admin. Expense(SGA) was $15.91 Mil.
Total Current Liabilities was $6.56 Mil.
Long-Term Debt was $0.00 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)
=(4.756 / 55.042) / (3.43 / 61.936)
=0.08640674 / 0.05537975
=1.5603

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)
=(5.743 / 61.936) / (4.753 / 55.042)
=0.42800633 / 0.407616
=1.05

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 - (37.811 + 5.259) / 53.029) / (1 - (36.29 + 1.783) / 50.468)
=0.1878029 / 0.24560117
=0.7647

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
=55.042 / 61.936
=0.8887

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))
=(0.547 / (0.547 + 1.783)) / (0.936 / (0.936 + 5.259))
=0.23476395 / 0.15108959
=1.5538

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)
=(16.825 / 55.042) / (15.911 / 61.936)
=0.30567567 / 0.25689421
=1.1899

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)
=((0 + 4.496) / 53.029) / ((0 + 6.559) / 50.468)
=0.0847838 / 0.12996354
=0.6524

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
=(3.582 - 0 - 4.111) / 53.029
=-0.01

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.

Clearfield Inc has a M-score of -2.03 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.

Clearfield Inc Annual Data

Mar05Mar06Mar07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.68241.16290.7761.1661.01251.21960.68920.87921.82110.5896
GMI -0.00220.67010.99130.85780.93980.94830.90041.02110.98970.9726
AQI 1.14961.07111.02341.78331.08050.94940.78141.23410.610.9753
SGI 1.18511.12511.15651.27941.06180.97681.44431.06481.42371.0879
DEPI 0.86710.70411.26610.96010.95690.88041.05350.99651.27910.946
SGAI 0.80980.96460.86480.91771.0481.07550.94920.94130.92781.0162
LVGI 1.0011.33710.71251.36210.65850.78111.38880.60391.70170.7232
TATA -0.0649-0.0082-0.0013-0.03330.07890.02420.02790.10270.0085-0.1176
M-score -3.36-2.54-2.40-2.10-1.95-2.19-2.49-1.81-1.65-3.27

Clearfield Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.52081.42421.04181.82110.46420.54740.67340.58962.16031.5603
GMI 1.04421.02431.02370.98970.94680.94130.93750.97251.00791.05
AQI 0.80980.85740.88740.610.75340.76470.71550.97530.89730.7647
SGI 1.03941.13131.18381.42371.53561.47551.40361.0880.94340.8887
DEPI 1.09251.27521.29831.27911.10410.94591.10210.9461.38731.5538
SGAI 0.96010.91970.97860.9280.88770.90090.88931.01611.12681.1899
LVGI 1.04020.96481.24961.70171.1541.54011.29030.72320.88490.6524
TATA 0.10580.08620.05350.0085-0.1062-0.142-0.1398-0.1176-0.0247-0.01
M-score -1.52-1.56-2.10-1.65-3.14-3.43-3.29-3.27-1.56-2.03
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