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Cantel Medical Corp (NYSE:CMN)
Beneish M-Score
-2.41 (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 -2.41 suggests that the company is not a manipulator.

CMN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.24   Max: -0.99
Current: -2.41

-3.24
-0.99

During the past 13 years, the highest Beneish M-Score of Cantel Medical Corp was -0.99. The lowest was -3.24. 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 * 1.1364+0.528 * 0.9645+0.404 * 1.0026+0.892 * 1.1765+0.115 * 1.1007
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0526+4.679 * -0.0292-0.327 * 1.1973
=-2.41

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

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $93.3 Mil.
Revenue was 179.002 + 173.703 + 158.271 + 153.779 = $664.8 Mil.
Gross Profit was 85.33 + 80.321 + 72.337 + 71.198 = $309.2 Mil.
Total Current Assets was $222.7 Mil.
Total Assets was $694.5 Mil.
Property, Plant and Equipment(Net PPE) was $74.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.1 Mil.
Selling, General & Admin. Expense(SGA) was $196.5 Mil.
Total Current Liabilities was $96.3 Mil.
Long-Term Debt was $116.0 Mil.
Net Income was 16.291 + 14.019 + 15.389 + 14.254 = $60.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 28.465 + 23.532 + 13.156 + 15.115 = $80.3 Mil.
Accounts Receivable was $69.8 Mil.
Revenue was 151.255 + 141.508 + 135.43 + 136.811 = $565.0 Mil.
Gross Profit was 68.763 + 63.599 + 60.591 + 60.514 = $253.5 Mil.
Total Current Assets was $188.4 Mil.
Total Assets was $584.0 Mil.
Property, Plant and Equipment(Net PPE) was $62.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.0 Mil.
Selling, General & Admin. Expense(SGA) was $158.7 Mil.
Total Current Liabilities was $70.6 Mil.
Long-Term Debt was $78.5 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)
=(93.332 / 664.755) / (69.805 / 565.004)
=0.1404006 / 0.1235478
=1.1364

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)
=(253.467 / 565.004) / (309.186 / 664.755)
=0.44861098 / 0.46511271
=0.9645

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 - (222.742 + 74.604) / 694.532) / (1 - (188.361 + 62.541) / 584.031)
=0.57187574 / 0.57039609
=1.0026

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
=664.755 / 565.004
=1.1765

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))
=(23.957 / (23.957 + 62.541)) / (25.084 / (25.084 + 74.604))
=0.27696594 / 0.25162507
=1.1007

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)
=(196.525 / 664.755) / (158.684 / 565.004)
=0.29563523 / 0.28085465
=1.0526

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)
=((116 + 96.335) / 694.532) / ((78.5 + 70.624) / 584.031)
=0.30572385 / 0.25533576
=1.1973

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
=(59.953 - 0 - 80.268) / 694.532
=-0.0292

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 -2.41 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.

Cantel Medical Corp Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
DSRI 1.1260.87480.96320.99351.23260.86570.99991.02580.97041.1364
GMI 0.99851.02650.91860.94441.06120.89870.9840.98910.97280.9645
AQI 1.13910.99750.98090.97511.01781.08541.00451.00030.95711.0026
SGI 1.13981.13851.04281.05351.17411.20161.09971.14991.1561.1765
DEPI 1.00610.91150.98380.98020.92340.98220.99731.0270.95231.1007
SGAI 1.03161.00590.98451.03010.98751.00880.98171.0311.04341.0526
LVGI 1.0750.96890.81550.71071.13231.4820.95110.92760.93131.1973
TATA 0.0094-0.0353-0.0555-0.0324-0.0242-0.0429-0.0251-0.0392-0.0153-0.0292
M-score -2.17-2.62-2.72-2.54-2.23-2.80-2.50-2.49-2.46-2.41

Cantel Medical Corp Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 1.00911.02580.97160.94791.04770.97041.00591.00921.06861.1364
GMI 0.99220.98910.98370.98770.98250.97280.96550.96520.96540.9645
AQI 0.98481.00031.0020.95670.97340.95711.00891.03430.99381.0026
SGI 1.15031.14991.14351.14771.15651.1561.14721.15491.16861.1765
DEPI 0.98021.0271.02381.09931.04020.95231.02940.95851.02491.1007
SGAI 1.03191.0311.04061.0431.04131.04341.03451.00951.03961.0526
LVGI 0.73790.92761.03781.12351.18010.93131.16481.08251.16161.1973
TATA -0.03-0.0392-0.041-0.0322-0.0161-0.0153-0.0123-0.0166-0.0291-0.0292
M-score -2.41-2.49-2.59-2.61-2.45-2.46-2.47-2.45-2.48-2.41
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