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Clearfield, Inc. (NAS:CLFD)
Beneish M-Score
-3.14 (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 -3.14 suggests that the company is not a manipulator.

CLFD' s 10-Year Beneish M-Score Range
Min: -2600.9   Max: 152.1
Current: -3.14

-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 -2.43.


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 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 * 0.4642+0.528 * 0.9468+0.404 * 0.7534+0.892 * 1.5356+0.115 * 1.1041
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8877+4.679 * -0.1062-0.327 * 1.154
=-3.14

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $2.28 Mil.
Revenue was 16.148 + 19.039 + 13.535 + 10.514 = $59.24 Mil.
Gross Profit was 6.938 + 8.221 + 5.629 + 4.215 = $25.00 Mil.
Total Current Assets was $33.44 Mil.
Total Assets was $46.27 Mil.
Property, Plant and Equipment(Net PPE) was $1.74 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.51 Mil.
Selling, General & Admin. Expense(SGA) was $15.37 Mil.
Total Current Liabilities was $3.90 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 1.982 + 2.496 + 1.147 + 0.545 = $6.17 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 6.8 + 2.553 + 1.131 + 0.599 = $11.08 Mil.
Accounts Receivable was $3.20 Mil.
Revenue was 10.265 + 10.403 + 10.794 + 7.112 = $38.57 Mil.
Gross Profit was 3.924 + 4.215 + 4.557 + 2.719 = $15.42 Mil.
Total Current Assets was $24.81 Mil.
Total Assets was $38.28 Mil.
Property, Plant and Equipment(Net PPE) was $1.29 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.43 Mil.
Selling, General & Admin. Expense(SGA) was $11.28 Mil.
Total Current Liabilities was $2.80 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)
=(2.284 / 59.236) / (3.204 / 38.574)
=0.03855763 / 0.08306113
=0.4642

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)
=(8.221 / 38.574) / (6.938 / 59.236)
=0.39962151 / 0.4220913
=0.9468

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 - (33.44 + 1.736) / 46.265) / (1 - (24.81 + 1.293) / 38.281)
=0.23968443 / 0.31812126
=0.7534

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
=59.236 / 38.574
=1.5356

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))
=(0.43 / (0.43 + 1.293)) / (0.507 / (0.507 + 1.736))
=0.24956471 / 0.22603656
=1.1041

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)
=(15.372 / 59.236) / (11.276 / 38.574)
=0.25950436 / 0.29232125
=0.8877

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 + 3.901) / 46.265) / ((0 + 2.797) / 38.281)
=0.0843186 / 0.07306497
=1.154

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
=(6.17 - 0 - 11.083) / 46.265
=-0.1062

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 -3.14 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.

Clearfield, Inc. Annual Data

Mar05Mar06Mar07Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 0.68241.16290.7762.54070.45891.01251.21960.68920.87921.8211
GMI -0.00220.67010.99130.91740.93510.93980.94830.90041.02110.9897
AQI 1.14961.07111.02341.0381.71811.08050.94940.78141.23410.61
SGI 1.18511.12511.15650.56072.28161.06180.97681.44431.06481.4237
DEPI 0.86710.70411.26612.11310.45440.95690.88041.05350.99651.2791
SGAI 0.80980.96460.86481.12550.81531.0481.07550.94920.94130.9278
LVGI 1.0011.33710.71251.2511.08880.65850.78111.38880.60391.7017
TATA -0.0649-0.0082-0.0013-0.0272-0.03330.07890.02420.02790.10270.0085
M-score -3.36-2.54-2.40-1.59-1.79-1.95-2.19-2.49-1.81-1.65

Clearfield, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.68920.62820.69220.95410.87921.52081.42421.04181.82110.4642
GMI 0.90030.93450.96390.99511.02121.04421.02431.02370.98970.9468
AQI 0.78141.12831.26241.23281.23410.80980.85740.88740.610.7534
SGI 1.44431.39151.27651.16541.06481.03941.13131.18381.42371.5356
DEPI 1.05571.05191.50161.03540.99441.09251.27521.29831.27911.1041
SGAI 0.9490.9460.99170.9530.94120.96010.91970.97860.9280.8877
LVGI 1.38880.71530.78240.6050.60391.04020.96481.24961.70171.154
TATA 0.02790.07770.08160.11420.10270.10580.08620.05350.0085-0.1062
M-score -2.49-1.98-1.92-1.61-1.81-1.52-1.56-2.10-1.65-3.14
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