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Clearfield Inc (NAS:CLFD)
Beneish M-Score
-2.07 (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 -2.07 signals that the company is a manipulator.

CLFD' s Beneish M-Score Range Over the Past 10 Years
Min: -2600.89   Max: 152.11
Current: -2.07

-2600.89
152.11

During the past 13 years, the highest Beneish M-Score of Clearfield Inc was 152.11. The lowest was -2600.89. And the median was -2.51.


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 * 1.3647+0.528 * 0.9583+0.404 * 0.9259+0.892 * 1.2101+0.115 * 0.7415
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9448+4.679 * -0.0012-0.327 * 1.1001
=-2.07

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $7.85 Mil.
Revenue was 16.947 + 15.69 + 15.771 + 18.196 = $66.60 Mil.
Gross Profit was 7.28 + 6.677 + 6.575 + 7.797 = $28.33 Mil.
Total Current Assets was $45.48 Mil.
Total Assets was $61.57 Mil.
Property, Plant and Equipment(Net PPE) was $5.38 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.38 Mil.
Selling, General & Admin. Expense(SGA) was $19.24 Mil.
Total Current Liabilities was $5.74 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 1.439 + 1.383 + 1.371 + 1.953 = $6.15 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.379 + 1.91 + 2.507 + 1.426 = $6.22 Mil.
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.



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)
=(7.854 / 66.604) / (4.756 / 55.042)
=0.11792085 / 0.08640674
=1.3647

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)
=(22.436 / 55.042) / (28.329 / 66.604)
=0.407616 / 0.42533481
=0.9583

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 - (45.483 + 5.377) / 61.565) / (1 - (37.811 + 5.259) / 53.029)
=0.17388126 / 0.1878029
=0.9259

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
=66.604 / 55.042
=1.2101

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))
=(0.936 / (0.936 + 5.259)) / (1.376 / (1.376 + 5.377))
=0.15108959 / 0.20376129
=0.7415

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)
=(19.236 / 66.604) / (16.825 / 55.042)
=0.28881148 / 0.30567567
=0.9448

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 + 5.742) / 61.565) / ((0 + 4.496) / 53.029)
=0.09326728 / 0.0847838
=1.1001

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
=(6.146 - 0 - 6.222) / 61.565
=-0.0012

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 -2.07 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

Mar06Mar07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 1.15590.761.17851.01251.21960.68920.87921.82110.58961.1503
GMI 0.86510.86290.77590.93980.94830.90041.02110.98970.97261.028
AQI 1.07111.02341.78331.08050.94940.78141.23410.610.97530.8864
SGI 1.13191.18081.26581.06180.97681.44431.06481.42371.08791.0393
DEPI 0.70411.26610.96010.95690.88041.05350.99651.27910.9461.2573
SGAI 1.11080.83590.81131.0481.07550.94920.93920.92981.01621.0661
LVGI 1.33710.71251.36210.65850.78111.38880.60391.70170.72320.8884
TATA -0.0233-0.0516-0.03330.07890.02420.02790.10270.0085-0.1176-0.0376
M-score -2.53-2.69-2.13-1.95-2.19-2.49-1.81-1.66-3.27-2.46

Clearfield Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.46420.54740.67340.58962.16031.56031.65061.15030.97161.3647
GMI 0.94680.94130.93750.97251.00791.051.0441.0281.00680.9583
AQI 0.75340.76470.71550.97530.89730.76470.84930.88640.78710.9259
SGI 1.53561.47551.40361.0880.94340.88870.9381.03931.10991.2101
DEPI 1.10410.94591.10210.9461.38731.55381.28341.25730.84050.7415
SGAI 0.88770.90090.88931.01611.12681.18991.14621.06621.01380.9448
LVGI 1.1541.54011.29030.72320.88490.65240.79880.88840.86251.1001
TATA -0.1062-0.142-0.1398-0.1176-0.0247-0.010.004-0.0376-0.047-0.0012
M-score -3.14-3.43-3.29-3.27-1.56-2.03-1.88-2.46-2.69-2.07
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