Switch to:
Cantel Medical Corp (NYSE:CMN)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

CMN' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -1.09
Current: -2.49

-3.19
-1.09

During the past 13 years, the highest Beneish M-Score of Cantel Medical Corp was -1.09. The lowest was -3.19. And the median was -2.48.


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 * 1.0258+0.528 * 0.9891+0.404 * 1.0003+0.892 * 1.1499+0.115 * 1.027
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.031+4.679 * -0.0392-0.327 * 0.9276
=-2.49

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $62.2 Mil.
Revenue was 131.377 + 120.058 + 119.042 + 118.272 = $488.7 Mil.
Gross Profit was 57.047 + 52.418 + 52.335 + 51.499 = $213.3 Mil.
Total Current Assets was $163.9 Mil.
Total Assets was $536.1 Mil.
Property, Plant and Equipment(Net PPE) was $52.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.9 Mil.
Selling, General & Admin. Expense(SGA) was $131.6 Mil.
Total Current Liabilities was $66.5 Mil.
Long-Term Debt was $80.5 Mil.
Net Income was 10.705 + 10.249 + 11.126 + 11.185 = $43.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 23.545 + 19.178 + 10.798 + 10.751 = $64.3 Mil.
Accounts Receivable was $52.8 Mil.
Revenue was 113.973 + 105.009 + 106.363 + 99.681 = $425.0 Mil.
Gross Profit was 49.114 + 45.484 + 45.151 + 43.727 = $183.5 Mil.
Total Current Assets was $150.7 Mil.
Total Assets was $487.7 Mil.
Property, Plant and Equipment(Net PPE) was $46.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.3 Mil.
Selling, General & Admin. Expense(SGA) was $111.0 Mil.
Total Current Liabilities was $59.2 Mil.
Long-Term Debt was $85.0 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)
=(62.225 / 488.749) / (52.753 / 425.026)
=0.12731484 / 0.12411711
=1.0258

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)
=(52.418 / 425.026) / (57.047 / 488.749)
=0.43168183 / 0.43641828
=0.9891

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 - (163.909 + 52.718) / 536.145) / (1 - (150.66 + 46.465) / 487.671)
=0.59595445 / 0.59578281
=1.0003

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
=488.749 / 425.026
=1.1499

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))
=(17.263 / (17.263 + 46.465)) / (18.886 / (18.886 + 52.718))
=0.27088564 / 0.26375621
=1.027

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)
=(131.558 / 488.749) / (110.968 / 425.026)
=0.26917293 / 0.2610852
=1.031

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)
=((80.5 + 66.499) / 536.145) / ((85 + 59.151) / 487.671)
=0.27417769 / 0.29559067
=0.9276

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
=(43.265 - 0 - 64.272) / 536.145
=-0.0392

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 -2.49 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

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
DSRI 0.63780.81191.1260.87480.96320.99351.23260.86570.99991.0258
GMI 0.92971.09070.99851.02650.91860.94441.06120.89870.9840.9891
AQI 0.86721.67451.13910.99750.98090.97511.01781.08541.00451.0003
SGI 1.11471.40121.13981.13851.04281.05351.17411.20161.09971.1499
DEPI 0.90840.87011.00610.91150.98380.98020.92340.98220.99731.027
SGAI 1.03010.98131.03161.00590.98451.03010.98751.00880.98171.031
LVGI 0.78371.16651.0750.96890.81550.71071.13231.4820.95110.9276
TATA -0.05040.02110.0198-0.0206-0.0555-0.0324-0.0242-0.0429-0.0251-0.0392
M-score -2.98-1.94-2.12-2.56-2.72-2.54-2.23-2.80-2.50-2.49

Cantel Medical Corp Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.85390.86570.97461.01731.02670.99991.04691.01061.00911.0258
GMI 0.94680.89870.89360.91170.94850.9841.00330.99690.99220.9891
AQI 1.08871.08540.95550.99731.00221.00450.99960.99040.98481.0003
SGI 1.22381.20161.14581.11911.09611.09971.12911.13511.15031.1499
DEPI 0.98660.98220.85270.93980.96410.99730.990.95020.98021.027
SGAI 1.01381.00880.98920.97450.96870.98170.9991.03341.03191.031
LVGI 1.50441.4820.76370.90130.95180.95110.94070.78680.73790.9276
TATA -0.0385-0.0429-0.0393-0.0253-0.028-0.0251-0.0248-0.0253-0.03-0.0392
M-score -2.76-2.80-2.57-2.49-2.51-2.50-2.42-2.42-2.41-2.49
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)
Free 7-day Trial
FEEDBACK