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Cantel Medical Corp (NYSE:CMN)
Beneish M-Score
-2.47 (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.

Cantel Medical Corp has a M-score of -2.47 suggests that the company is not a manipulator.

CMN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19   Max: 0.34
Current: -2.47

-3.19
0.34

During the past 13 years, the highest Beneish M-Score of Cantel Medical Corp was 0.34. The lowest was -3.19. And the median was -2.44.


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 Cantel Medical Corp 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 * 1.0059+0.528 * 0.9655+0.404 * 1.0089+0.892 * 1.1472+0.115 * 1.0294
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0345+4.679 * -0.0123-0.327 * 1.1648
=-2.47

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $73.9 Mil.
Revenue was 153.779 + 151.255 + 141.508 + 135.43 = $582.0 Mil.
Gross Profit was 71.198 + 68.763 + 63.599 + 60.591 = $264.2 Mil.
Total Current Assets was $202.4 Mil.
Total Assets was $677.7 Mil.
Property, Plant and Equipment(Net PPE) was $69.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.6 Mil.
Selling, General & Admin. Expense(SGA) was $164.4 Mil.
Total Current Liabilities was $75.1 Mil.
Long-Term Debt was $147.5 Mil.
Net Income was 14.254 + 13.273 + 12.356 + 11.085 = $51.0 Mil.
Non Operating Income was 0 + 0 + -2.206 + 0 = $-2.2 Mil.
Cash Flow from Operations was 15.115 + 25.696 + 14.536 + 6.135 = $61.5 Mil.
Accounts Receivable was $64.0 Mil.
Revenue was 136.811 + 131.377 + 120.058 + 119.042 = $507.3 Mil.
Gross Profit was 60.514 + 57.047 + 52.418 + 52.335 = $222.3 Mil.
Total Current Assets was $174.0 Mil.
Total Assets was $558.7 Mil.
Property, Plant and Equipment(Net PPE) was $52.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.6 Mil.
Selling, General & Admin. Expense(SGA) was $138.5 Mil.
Total Current Liabilities was $64.0 Mil.
Long-Term Debt was $93.5 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)
=(73.91 / 581.972) / (64.048 / 507.288)
=0.12699924 / 0.1262557
=1.0059

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)
=(68.763 / 507.288) / (71.198 / 581.972)
=0.43824021 / 0.45388953
=0.9655

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 - (202.446 + 69.16) / 677.662) / (1 - (173.963 + 52.936) / 558.725)
=0.59920137 / 0.59389861
=1.0089

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
=581.972 / 507.288
=1.1472

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))
=(19.591 / (19.591 + 52.936)) / (24.605 / (24.605 + 69.16))
=0.27012009 / 0.26241135
=1.0294

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)
=(164.423 / 581.972) / (138.548 / 507.288)
=0.28252734 / 0.27311507
=1.0345

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)
=((147.5 + 75.067) / 677.662) / ((93.5 + 64.038) / 558.725)
=0.32843364 / 0.28195982
=1.1648

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
=(50.968 - -2.206 - 61.482) / 677.662
=-0.0123

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.

Cantel Medical Corp has a M-score of -2.47 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.

Cantel Medical Corp Annual Data

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
DSRI 0.81191.1260.87480.96320.99351.23260.86570.99991.02580.9704
GMI 1.09070.99851.02650.91860.94441.06120.89870.9840.98910.9728
AQI 1.67451.13910.99750.98090.97511.01781.08541.00451.00030.9571
SGI 1.40121.13981.13851.04281.05351.17411.20161.09971.14991.156
DEPI 0.87011.00610.91150.98380.98020.92340.98220.99731.0270.9523
SGAI 0.98131.03161.00590.98451.03010.98751.00880.98171.0311.0434
LVGI 1.16651.0750.96890.81550.71071.13231.4820.95110.92760.9313
TATA 0.02110.0198-0.0206-0.0555-0.0324-0.0242-0.0429-0.0251-0.0392-0.0153
M-score -1.94-2.12-2.56-2.72-2.54-2.23-2.80-2.50-2.49-2.46

Cantel Medical Corp Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 0.99991.04691.01061.00911.02580.97160.94791.04770.97041.0059
GMI 0.9841.00330.99690.99220.98910.98370.98770.98250.97280.9655
AQI 1.00450.99960.99040.98481.00031.0020.95670.97340.95711.0089
SGI 1.09971.12911.13511.15031.14991.14351.14771.15651.1561.1472
DEPI 0.99730.990.95020.98021.0271.02381.09931.04020.95231.0294
SGAI 0.98170.9991.03341.03191.0311.04061.0431.04131.04341.0345
LVGI 0.95110.94070.78680.73790.92761.03781.12351.18010.93131.1648
TATA -0.0251-0.0248-0.0253-0.03-0.0392-0.041-0.0322-0.0161-0.0153-0.0123
M-score -2.50-2.42-2.42-2.41-2.49-2.59-2.61-2.45-2.46-2.47
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