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Clearfield Inc (NAS:CLFD)
Beneish M-Score
-2.54 (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 -2.54 suggests that the company is not a manipulator.

CLFD' s Beneish M-Score Range Over the Past 10 Years
Min: -2600.89   Max: 25.82
Current: -2.54

-2600.89
25.82

During the past 13 years, the highest Beneish M-Score of Clearfield Inc was 25.82. The lowest was -2600.89. And the median was -2.52.


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 * 1.0663+0.528 * 0.9442+0.404 * 1+0.892 * 1.248+0.115 * 0.8786
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9956+4.679 * -0.0501-0.327 * 1.1905
=-2.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $8.00 Mil.
Revenue was 21.052 + 21.599 + 16.947 + 15.69 = $75.29 Mil.
Gross Profit was 9.573 + 9.34 + 7.28 + 6.677 = $32.87 Mil.
Total Current Assets was $51.11 Mil.
Total Assets was $70.60 Mil.
Property, Plant and Equipment(Net PPE) was $5.78 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.45 Mil.
Selling, General & Admin. Expense(SGA) was $22.14 Mil.
Total Current Liabilities was $7.35 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 2.909 + 2.282 + 1.439 + 1.383 = $8.01 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 6.41 + 2.853 + 0.379 + 1.91 = $11.55 Mil.
Accounts Receivable was $6.01 Mil.
Revenue was 15.771 + 18.196 + 12.371 + 13.987 = $60.33 Mil.
Gross Profit was 6.575 + 7.797 + 4.753 + 5.743 = $24.87 Mil.
Total Current Assets was $40.75 Mil.
Total Assets was $57.63 Mil.
Property, Plant and Equipment(Net PPE) was $5.69 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.22 Mil.
Selling, General & Admin. Expense(SGA) was $17.82 Mil.
Total Current Liabilities was $5.04 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)
=(7.999 / 75.288) / (6.011 / 60.325)
=0.10624535 / 0.0996436
=1.0663

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)
=(24.868 / 60.325) / (32.87 / 75.288)
=0.41223373 / 0.43659016
=0.9442

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 - (51.113 + 5.781) / 70.595) / (1 - (40.754 + 5.69) / 57.628)
=0.1940789 / 0.19407233
=1

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
=75.288 / 60.325
=1.248

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))
=(1.216 / (1.216 + 5.69)) / (1.449 / (1.449 + 5.781))
=0.17607877 / 0.20041494
=0.8786

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)
=(22.138 / 75.288) / (17.817 / 60.325)
=0.2940442 / 0.29535019
=0.9956

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 + 7.346) / 70.595) / ((0 + 5.037) / 57.628)
=0.10405836 / 0.08740543
=1.1905

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
=(8.013 - 0 - 11.552) / 70.595
=-0.0501

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 -2.54 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 local exchange's currency.

Clearfield Inc Annual Data

Mar07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
DSRI 0.7761.1661.01251.21960.68920.87921.82110.58961.15031.0662
GMI 0.99130.85780.93980.94830.90041.02110.98970.97261.0280.9442
AQI 1.02341.78331.08050.94940.78141.23410.610.97530.88641
SGI 1.15651.27941.06180.97681.44431.06481.42371.08791.03931.2481
DEPI 1.26610.96010.95690.88041.05350.99651.27910.9461.25730.8786
SGAI 0.86480.91771.0481.07550.94920.94130.92781.01621.06610.9956
LVGI 0.71251.36210.65850.78111.38880.60391.70170.72320.88841.1905
TATA -0.0556-0.03330.07890.02420.02790.10270.0085-0.1176-0.0376-0.0501
M-score -2.65-2.10-1.95-2.19-2.49-1.81-1.65-3.27-2.46-2.54

Clearfield Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.67340.58962.16031.56031.65061.15030.97161.36470.99351.0663
GMI 0.93750.97251.00791.051.0441.0281.00680.95830.96290.9442
AQI 0.71550.97530.89730.76470.84930.88640.78710.92590.93671
SGI 1.40361.0880.94340.88870.9381.03931.10991.21011.18911.248
DEPI 1.10210.9461.38731.55381.28341.25730.84050.74150.79390.8786
SGAI 0.88931.01611.12681.18991.14621.06621.01380.94480.97480.9956
LVGI 1.29030.72320.88490.65240.79880.88840.86251.10010.9181.1905
TATA -0.1398-0.1176-0.0247-0.010.004-0.0376-0.047-0.0012-0.0176-0.0501
M-score -3.29-3.27-1.56-2.03-1.88-2.46-2.69-2.07-2.44-2.54
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