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Clearfield Inc (NAS:CLFD)
Beneish M-Score
-3.27 (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 -3.27 suggests that the company is not a manipulator.

CLFD' s 10-Year Beneish M-Score Range
Min: -2600.9   Max: 25.79
Current: -3.27

-2600.9
25.79

During the past 13 years, the highest Beneish M-Score of Clearfield Inc was 25.79. The lowest was -2600.90. And the median was -2.39.


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 * 0.5896+0.528 * 0.9725+0.404 * 0.9753+0.892 * 1.088+0.115 * 0.946
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0161+4.679 * -0.1176-0.327 * 0.7232
=-3.27

* 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 $5.03 Mil.
Revenue was 14.321 + 14.363 + 13.214 + 16.148 = $58.05 Mil.
Gross Profit was 5.897 + 6.043 + 5.721 + 6.938 = $24.60 Mil.
Total Current Assets was $38.03 Mil.
Total Assets was $51.85 Mil.
Property, Plant and Equipment(Net PPE) was $2.46 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.70 Mil.
Selling, General & Admin. Expense(SGA) was $16.08 Mil.
Total Current Liabilities was $5.10 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 1.049 + 1.175 + 1.226 + 1.982 = $5.43 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.21 + 1.406 + 3.533 + 6.8 = $11.53 Mil.
Accounts Receivable was $7.84 Mil.
Revenue was 19.039 + 13.535 + 10.514 + 10.265 = $53.35 Mil.
Gross Profit was 8.221 + 5.629 + 4.215 + 3.924 = $21.99 Mil.
Total Current Assets was $34.20 Mil.
Total Assets was $46.41 Mil.
Property, Plant and Equipment(Net PPE) was $1.80 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.48 Mil.
Selling, General & Admin. Expense(SGA) was $14.55 Mil.
Total Current Liabilities was $6.31 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)
=(5.028 / 58.046) / (7.838 / 53.353)
=0.08662096 / 0.14690833
=0.5896

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)
=(6.043 / 53.353) / (5.897 / 58.046)
=0.41214177 / 0.42378458
=0.9725

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 - (38.034 + 2.462) / 51.848) / (1 - (34.197 + 1.797) / 46.413)
=0.21894769 / 0.22448452
=0.9753

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
=58.046 / 53.353
=1.088

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))
=(0.476 / (0.476 + 1.797)) / (0.7 / (0.7 + 2.462))
=0.20941487 / 0.22137887
=0.946

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)
=(16.08 / 58.046) / (14.546 / 53.353)
=0.27702167 / 0.27263697
=1.0161

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 + 5.101) / 51.848) / ((0 + 6.314) / 46.413)
=0.09838374 / 0.13603947
=0.7232

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
=(5.432 - 0 - 11.529) / 51.848
=-0.1176

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 -3.27 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

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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.95410.87921.52081.42421.04181.82110.46420.54740.67340.5896
GMI 0.99511.02121.04421.02431.02370.98970.94680.94130.93750.9725
AQI 1.23281.23410.80980.85740.88740.610.75340.76470.71550.9753
SGI 1.16541.06481.03941.13131.18381.42371.53561.47551.40361.088
DEPI 1.03540.99441.09251.27521.29831.27911.10410.94591.10210.946
SGAI 0.9530.94120.96010.91970.97860.9280.88770.90090.88931.0161
LVGI 0.6050.60391.04020.96481.24961.70171.1541.54011.29030.7232
TATA 0.11420.10270.10580.08620.05350.0085-0.1062-0.142-0.1398-0.1176
M-score -1.61-1.81-1.52-1.56-2.10-1.65-3.14-3.43-3.29-3.27
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