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Copart Inc (NAS:CPRT)
Beneish M-Score
-2.38 (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 -2.38 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: -2.38

-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 * 1.19+0.528 * 0.9927+0.404 * 1.145+0.892 * 1.0036+0.115 * 1.1765
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8358+4.679 * -0.0234-0.327 * 1.2148
=-2.38

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $281 Mil.
Revenue was 299.706 + 288.838 + 282.293 + 297.142 = $1,168 Mil.
Gross Profit was 124.614 + 120.861 + 118.784 + 127.417 = $492 Mil.
Total Current Assets was $507 Mil.
Total Assets was $1,604 Mil.
Property, Plant and Equipment(Net PPE) was $744 Mil.
Depreciation, Depletion and Amortization(DDA) was $47 Mil.
Selling, General & Admin. Expense(SGA) was $128 Mil.
Total Current Liabilities was $265 Mil.
Long-Term Debt was $577 Mil.
Net Income was 58.963 + 52.413 + 57.412 + 57.563 = $226 Mil.
Non Operating Income was 4.435 + 1.027 + 0.053 + -0.815 = $5 Mil.
Cash Flow from Operations was 6.486 + 76.594 + 61.707 + 114.486 = $259 Mil.
Accounts Receivable was $235 Mil.
Revenue was 276.258 + 290.386 + 287.45 + 309.722 = $1,164 Mil.
Gross Profit was 114.867 + 122.308 + 116.939 + 132.252 = $486 Mil.
Total Current Assets was $888 Mil.
Total Assets was $1,952 Mil.
Property, Plant and Equipment(Net PPE) was $688 Mil.
Depreciation, Depletion and Amortization(DDA) was $52 Mil.
Selling, General & Admin. Expense(SGA) was $153 Mil.
Total Current Liabilities was $235 Mil.
Long-Term Debt was $608 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)
=(281.227 / 1167.979) / (235.477 / 1163.816)
=0.24078087 / 0.20233181
=1.19

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)
=(120.861 / 1163.816) / (124.614 / 1167.979)
=0.41790627 / 0.42096305
=0.9927

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 - (506.858 + 744.224) / 1604.364) / (1 - (888.425 + 688.244) / 1952.071)
=0.22020065 / 0.1923096
=1.145

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
=1167.979 / 1163.816
=1.0036

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))
=(51.513 / (51.513 + 688.244)) / (46.82 / (46.82 + 744.224))
=0.06963503 / 0.05918761
=1.1765

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)
=(128.37 / 1167.979) / (153.045 / 1163.816)
=0.1099078 / 0.13150275
=0.8358

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)
=((576.501 + 265.117) / 1604.364) / ((608.236 + 234.724) / 1952.071)
=0.52458046 / 0.43182856
=1.2148

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
=(226.351 - 4.7 - 259.273) / 1604.364
=-0.0234

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 -2.38 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 0.95131.03640.72611.0330.95980.99820.3863.21190.33761.0477
GMI 1.03470.91671.15880.97710.93331.05320.96461.10180.99880.9549
AQI 1.00781.43571.07450.81870.88821.25950.9531.23411.01610.7598
SGI 1.18061.06071.39980.94681.04011.12861.05961.13221.11190.985
DEPI 1.11021.03971.04711.07081.03070.99130.93290.98131.07291.1035
SGAI 1.0951.01710.94681.08871.20460.87531.00421.0641.07280.8575
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

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 1.08150.98411.0390.33761.01111.0091.11541.04771.15891.19
GMI 1.15041.08051.03630.99880.94610.94630.95380.95490.97720.9927
AQI 1.2721.21951.32611.01610.91610.69470.6630.75980.78021.145
SGI 1.161.13521.12931.11191.07961.05071.01010.9850.97491.0036
DEPI 0.93430.97420.99961.07291.08961.06841.0681.10351.15481.1765
SGAI 1.11541.1211.13231.07280.99950.93530.87920.83990.83060.8358
LVGI 0.82420.83170.82370.7740.78351.19271.22581.44191.44371.2148
TATA -0.0153-0.0322-0.0405-0.0579-0.0598-0.0438-0.0249-0.0279-0.0232-0.0234
M-score -2.11-2.36-2.33-3.18-2.66-2.83-2.69-2.81-2.66-2.38
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