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Clearfield Inc (NAS:CLFD)
Beneish M-Score
-2.55 (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 -2.69 suggests that the company is not a manipulator.

CLFD' s Beneish M-Score Range Over the Past 10 Years
Min: -2149.43   Max: 139.47
Current: -2.55

-2149.43
139.47

During the past 13 years, the highest Beneish M-Score of Clearfield Inc was 139.47. The lowest was -2149.43. And the median was -2.45.


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 * 0.9716+0.528 * 1.0068+0.404 * 0.7871+0.892 * 1.1099+0.115 * 0.8405
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0138+4.679 * -0.047-0.327 * 0.8625
=-2.69

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $5.02 Mil.
Revenue was 15.69 + 15.771 + 18.196 + 12.371 = $62.03 Mil.
Gross Profit was 6.677 + 6.575 + 7.797 + 4.753 = $25.80 Mil.
Total Current Assets was $41.96 Mil.
Total Assets was $57.20 Mil.
Property, Plant and Equipment(Net PPE) was $5.55 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.34 Mil.
Selling, General & Admin. Expense(SGA) was $18.39 Mil.
Total Current Liabilities was $3.68 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 1.383 + 1.371 + 1.953 + 0.289 = $5.00 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.91 + 2.507 + 1.426 + 1.841 = $7.68 Mil.
Accounts Receivable was $4.66 Mil.
Revenue was 13.987 + 14.321 + 14.363 + 13.214 = $55.89 Mil.
Gross Profit was 5.743 + 5.897 + 6.043 + 5.721 = $23.40 Mil.
Total Current Assets was $36.84 Mil.
Total Assets was $52.03 Mil.
Property, Plant and Equipment(Net PPE) was $4.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.78 Mil.
Selling, General & Admin. Expense(SGA) was $16.34 Mil.
Total Current Liabilities was $3.88 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)
=(5.02 / 62.028) / (4.655 / 55.885)
=0.08093119 / 0.08329605
=0.9716

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)
=(6.575 / 55.885) / (6.677 / 62.028)
=0.41878858 / 0.41597343
=1.0068

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 - (41.964 + 5.552) / 57.199) / (1 - (36.84 + 3.997) / 52.027)
=0.16928618 / 0.21508063
=0.7871

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
=62.028 / 55.885
=1.1099

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))
=(0.778 / (0.778 + 3.997)) / (1.335 / (1.335 + 5.552))
=0.16293194 / 0.19384347
=0.8405

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)
=(18.388 / 62.028) / (16.341 / 55.885)
=0.29644677 / 0.29240404
=1.0138

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 + 3.681) / 57.199) / ((0 + 3.882) / 52.027)
=0.06435427 / 0.0746151
=0.8625

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
=(4.996 - 0 - 7.684) / 57.199
=-0.047

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 -2.69 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

Mar06Mar07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 1.16290.7761.1661.01251.21960.68920.87921.82110.58961.1503
GMI 0.67010.99130.85780.93980.94830.90041.02110.98970.97261.028
AQI 1.07111.02341.78331.08050.94940.78141.23410.610.97530.8864
SGI 1.12511.15651.27941.06180.97681.44431.06481.42371.08791.0393
DEPI 0.70411.26610.96010.95690.88041.05350.99651.27910.9461.2573
SGAI 0.96460.86480.91771.0481.07550.94920.94130.92781.01621.0661
LVGI 1.33710.71251.36210.65850.78111.38880.60391.70170.72320.8884
TATA -0.0082-0.0013-0.03330.07890.02420.02790.10270.0085-0.1176-0.0376
M-score -2.54-2.40-2.10-1.95-2.19-2.49-1.81-1.65-3.27-2.46

Clearfield Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.82110.46420.54740.67340.58962.16031.56031.65061.15030.9716
GMI 0.98970.94680.94130.93750.97251.00791.051.0441.0281.0068
AQI 0.610.75340.76470.71550.97530.89730.76470.84930.88640.7871
SGI 1.42371.53561.47551.40361.0880.94340.88870.9381.03931.1099
DEPI 1.27911.10410.94591.10210.9461.38731.55381.28341.25730.8405
SGAI 0.9280.88770.90090.88931.01611.12681.18991.14621.06621.0138
LVGI 1.70171.1541.54011.29030.72320.88490.65240.79880.88840.8625
TATA 0.0085-0.1062-0.142-0.1398-0.1176-0.0247-0.010.004-0.0376-0.047
M-score -1.65-3.14-3.43-3.29-3.27-1.56-2.03-1.88-2.46-2.69
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