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Clearfield Inc (NAS:CLFD)
Beneish M-Score
-3.29 (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 -3.29 suggests that the company is not a manipulator.

CLFD' s 10-Year Beneish M-Score Range
Min: -2600.9   Max: 152.1
Current: -3.29

-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 * 0.6734+0.528 * 0.9375+0.404 * 0.7155+0.892 * 1.4036+0.115 * 1.1021
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8893+4.679 * -0.1398-0.327 * 1.2903
=-3.29

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $4.77 Mil.
Revenue was 14.363 + 13.214 + 16.148 + 19.039 = $62.76 Mil.
Gross Profit was 6.043 + 5.721 + 6.938 + 8.221 = $26.92 Mil.
Total Current Assets was $39.16 Mil.
Total Assets was $53.01 Mil.
Property, Plant and Equipment(Net PPE) was $2.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.61 Mil.
Selling, General & Admin. Expense(SGA) was $16.26 Mil.
Total Current Liabilities was $7.11 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 1.175 + 1.226 + 1.982 + 2.496 = $6.88 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.406 + 3.533 + 6.8 + 2.553 = $14.29 Mil.
Accounts Receivable was $5.05 Mil.
Revenue was 13.535 + 10.514 + 10.265 + 10.403 = $44.72 Mil.
Gross Profit was 5.629 + 4.215 + 3.924 + 4.215 = $17.98 Mil.
Total Current Assets was $27.65 Mil.
Total Assets was $41.97 Mil.
Property, Plant and Equipment(Net PPE) was $1.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.47 Mil.
Selling, General & Admin. Expense(SGA) was $13.03 Mil.
Total Current Liabilities was $4.36 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)
=(4.771 / 62.764) / (5.048 / 44.717)
=0.07601491 / 0.11288772
=0.6734

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)
=(5.721 / 44.717) / (6.043 / 62.764)
=0.40215131 / 0.42895609
=0.9375

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 - (39.164 + 2.333) / 53.008) / (1 - (27.652 + 1.582) / 41.974)
=0.2171559 / 0.30352123
=0.7155

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
=62.764 / 44.717
=1.4036

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))
=(0.466 / (0.466 + 1.582)) / (0.607 / (0.607 + 2.333))
=0.22753906 / 0.20646259
=1.1021

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)
=(16.263 / 62.764) / (13.029 / 44.717)
=0.2591135 / 0.2913657
=0.8893

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 + 7.108) / 53.008) / ((0 + 4.362) / 41.974)
=0.13409297 / 0.10392148
=1.2903

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
=(6.879 - 0 - 14.292) / 53.008
=-0.1398

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 -3.29 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.69220.95410.87921.52081.42421.04181.82110.46420.54740.6734
GMI 0.96390.99511.02121.04421.02431.02370.98970.94680.94130.9375
AQI 1.26241.23281.23410.80980.85740.88740.610.75340.76470.7155
SGI 1.27651.16541.06481.03941.13131.18381.42371.53561.47551.4036
DEPI 1.50161.03540.99441.09251.27521.29831.27911.10410.94591.1021
SGAI 0.99170.9530.94120.96010.91970.97860.9280.88770.90090.8893
LVGI 0.78240.6050.60391.04020.96481.24961.70171.1541.54011.2903
TATA 0.08160.11420.10270.10580.08620.05350.0085-0.1062-0.142-0.1398
M-score -1.92-1.61-1.81-1.52-1.56-2.10-1.65-3.14-3.43-3.29
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