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Copart Inc (NAS:CPRT)
Beneish M-Score
-2.37 (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.

Copart Inc has a M-score of -2.37 suggests that the company is not a manipulator.

CPRT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.92   Max: -0.22
Current: -2.37

-3.92
-0.22

During the past 13 years, the highest Beneish M-Score of Copart Inc was -0.22. The lowest was -3.92. And the median was -2.61.


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 Copart 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 * 1.1467+0.528 * 0.9762+0.404 * 1.193+0.892 * 1.0581+0.115 * 1.2544
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9038+4.679 * -0.0197-0.327 * 1.2997
=-2.37

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $263 Mil.
Revenue was 347.246 + 299.706 + 288.838 + 282.293 = $1,218 Mil.
Gross Profit was 157.647 + 124.614 + 120.861 + 118.784 = $522 Mil.
Total Current Assets was $465 Mil.
Total Assets was $1,624 Mil.
Property, Plant and Equipment(Net PPE) was $807 Mil.
Depreciation, Depletion and Amortization(DDA) was $47 Mil.
Selling, General & Admin. Expense(SGA) was $136 Mil.
Total Current Liabilities was $204 Mil.
Long-Term Debt was $671 Mil.
Net Income was 74.016 + 58.963 + 52.413 + 57.412 = $243 Mil.
Non Operating Income was 0.039 + 4.435 + 1.027 + 0.053 = $6 Mil.
Cash Flow from Operations was 124.418 + 6.486 + 76.594 + 61.707 = $269 Mil.
Accounts Receivable was $217 Mil.
Revenue was 297.142 + 276.258 + 290.386 + 287.45 = $1,151 Mil.
Gross Profit was 127.417 + 114.867 + 122.308 + 116.939 = $482 Mil.
Total Current Assets was $954 Mil.
Total Assets was $2,003 Mil.
Property, Plant and Equipment(Net PPE) was $684 Mil.
Depreciation, Depletion and Amortization(DDA) was $51 Mil.
Selling, General & Admin. Expense(SGA) was $142 Mil.
Total Current Liabilities was $229 Mil.
Long-Term Debt was $600 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)
=(263.292 / 1218.083) / (217.003 / 1151.236)
=0.21615276 / 0.18849567
=1.1467

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)
=(481.531 / 1151.236) / (521.906 / 1218.083)
=0.41827306 / 0.42846506
=0.9762

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 - (464.505 + 806.973) / 1624.135) / (1 - (954.459 + 683.956) / 2002.977)
=0.21713528 / 0.18201008
=1.193

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
=1218.083 / 1151.236
=1.0581

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))
=(50.956 / (50.956 + 683.956)) / (47.214 / (47.214 + 806.973))
=0.06933619 / 0.05527361
=1.2544

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)
=(136.046 / 1218.083) / (142.264 / 1151.236)
=0.11168861 / 0.12357501
=0.9038

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)
=((670.507 + 203.581) / 1624.135) / ((599.951 + 229.448) / 2002.977)
=0.53818679 / 0.41408314
=1.2997

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
=(242.804 - 5.554 - 269.205) / 1624.135
=-0.0197

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.

Copart Inc has a M-score of -2.37 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.

Copart Inc Annual Data

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
DSRI 0.97131.03640.72611.0330.95980.99820.3863.21190.33761.0477
GMI 1.02240.91671.15880.97710.93331.05320.96461.10180.99880.9549
AQI 1.00781.43571.07450.81870.88821.25950.9531.23411.01610.7598
SGI 1.15631.06071.39980.94681.04011.12861.05961.13221.11190.985
DEPI 1.13761.03971.04711.07081.03070.99130.93290.98131.07291.1035
SGAI 1.08581.01710.94681.08871.20460.87531.00421.0641.07280.8575
LVGI 0.92261.2261.17450.730.89635.17061.06050.83310.7741.4419
TATA -0.0445-0.0457-0.0432-0.0598-0.0392-0.0726-0.0435-0.0171-0.0579-0.0279
M-score -2.53-2.55-2.51-2.78-2.74-3.92-3.26-0.22-3.18-2.81

Copart Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 0.98411.0390.33761.01111.0091.11541.04771.15891.191.1467
GMI 1.08051.03630.99880.94610.94630.95380.95490.97720.99270.9762
AQI 1.21951.32611.01610.91610.69470.6630.75980.78021.1451.193
SGI 1.13521.12931.11191.07961.05071.01010.9850.97491.00361.0581
DEPI 0.97420.99961.07291.08961.06841.0681.10351.15481.17651.2544
SGAI 1.1211.13231.07280.99950.93530.86160.87520.8670.87310.9038
LVGI 0.83170.82370.7740.78351.19271.22581.44191.44371.21481.2997
TATA -0.0322-0.0405-0.0579-0.0598-0.0438-0.0249-0.0279-0.0232-0.0234-0.0197
M-score -2.36-2.33-3.18-2.66-2.83-2.68-2.81-2.67-2.38-2.37
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