Switch to:
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Clearfield Inc (NAS:CLFD)
Beneish M-Score
-2.03 (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 -2.03 signals that the company is a manipulator.

CLFD' s Beneish M-Score Range Over the Past 10 Years
Min: -2600.89   Max: 152.11
Current: -2.03

-2600.89
152.11

During the past 13 years, the highest Beneish M-Score of Clearfield Inc was 152.11. The lowest was -2600.89. And the median was -2.49.


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 * 1.1824+0.528 * 0.9697+0.404 * 1.3882+0.892 * 1.2553+0.115 * 0.9624
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0163+4.679 * -0.017-0.327 * 0.9959
=-2.03

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $7.45 Mil.
Revenue was 18.266 + 21.052 + 21.599 + 16.947 = $77.86 Mil.
Gross Profit was 7.209 + 9.573 + 9.34 + 7.28 = $33.40 Mil.
Total Current Assets was $47.13 Mil.
Total Assets was $69.33 Mil.
Property, Plant and Equipment(Net PPE) was $5.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.49 Mil.
Selling, General & Admin. Expense(SGA) was $23.46 Mil.
Total Current Liabilities was $4.44 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.877 + 2.909 + 2.282 + 1.439 = $7.51 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.605 + 6.41 + 2.853 + 0.031 = $8.69 Mil.
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.



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)
=(7.451 / 77.864) / (5.02 / 62.028)
=0.09569249 / 0.08093119
=1.1824

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)
=(25.802 / 62.028) / (33.402 / 77.864)
=0.41597343 / 0.42897873
=0.9697

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 - (47.13 + 5.904) / 69.326) / (1 - (41.964 + 5.552) / 57.199)
=0.23500563 / 0.16928618
=1.3882

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
=77.864 / 62.028
=1.2553

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))
=(1.335 / (1.335 + 5.552)) / (1.489 / (1.489 + 5.904))
=0.19384347 / 0.20140674
=0.9624

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)
=(23.459 / 77.864) / (18.388 / 62.028)
=0.30128172 / 0.29644677
=1.0163

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 + 4.443) / 69.326) / ((0 + 3.681) / 57.199)
=0.06408851 / 0.06435427
=0.9959

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
=(7.507 - 0 - 8.689) / 69.326
=-0.017

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 -2.03 signals that the company is likely to 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

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.58962.16031.56031.65061.15030.97161.36470.99351.06631.1824
GMI 0.97251.00791.051.0441.0281.00680.95830.96290.94420.9697
AQI 0.97530.89730.76470.84930.88640.78710.92590.936711.3882
SGI 1.0880.94340.88870.9381.03931.10991.21011.18911.2481.2553
DEPI 0.9461.38731.55381.28341.25730.84050.74150.79390.87860.9624
SGAI 1.01611.12681.18991.14621.06621.01380.94480.97480.99561.0163
LVGI 0.72320.88490.65240.79880.88840.86251.10010.9181.19050.9959
TATA -0.1176-0.0247-0.010.004-0.0376-0.05130.0005-0.0161-0.0487-0.017
M-score -3.27-1.56-2.03-1.88-2.46-2.71-2.06-2.43-2.53-2.03
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK