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Copart Inc (NAS:CPRT)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

CPRT' s 10-Year Beneish M-Score Range
Min: -3.92   Max: -0.22
Current: -2.83

-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 -2.60.


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 * 1.009+0.528 * 0.9463+0.404 * 0.6947+0.892 * 1.0507+0.115 * 1.0684
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9527+4.679 * -0.0438-0.327 * 1.1927
=-2.83

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
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 $156 Mil.
Total Current Liabilities was $235 Mil.
Long-Term Debt was $608 Mil.
Net Income was 52.193 + 52.615 + 51.043 + 40.877 = $197 Mil.
Non Operating Income was 4.141 + 1.593 + 0.077 + 0.708 = $7 Mil.
Cash Flow from Operations was 5.517 + 83.366 + 54.96 + 131.843 = $276 Mil.
Accounts Receivable was $222 Mil.
Revenue was 286.434 + 279.883 + 263.697 + 277.638 = $1,108 Mil.
Gross Profit was 111.546 + 107.836 + 103.072 + 115.597 = $438 Mil.
Total Current Assets was $333 Mil.
Total Assets was $1,438 Mil.
Property, Plant and Equipment(Net PPE) was $707 Mil.
Depreciation, Depletion and Amortization(DDA) was $57 Mil.
Selling, General & Admin. Expense(SGA) was $156 Mil.
Total Current Liabilities was $260 Mil.
Long-Term Debt was $261 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)
=(235.477 / 1163.816) / (222.104 / 1107.652)
=0.20233181 / 0.20051785
=1.009

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)
=(122.308 / 1107.652) / (114.867 / 1163.816)
=0.3954771 / 0.41790627
=0.9463

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 - (888.425 + 688.244) / 1952.071) / (1 - (332.929 + 707.379) / 1438.493)
=0.1923096 / 0.27680705
=0.6947

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
=1163.816 / 1107.652
=1.0507

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))
=(56.857 / (56.857 + 707.379)) / (51.513 / (51.513 + 688.244))
=0.07439718 / 0.06963503
=1.0684

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)
=(155.902 / 1163.816) / (155.743 / 1107.652)
=0.1339576 / 0.14060644
=0.9527

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)
=((608.236 + 234.724) / 1952.071) / ((261.182 + 259.651) / 1438.493)
=0.43182856 / 0.3620685
=1.1927

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
=(196.728 - 6.519 - 275.686) / 1952.071
=-0.0438

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 -2.83 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

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
DSRI 0.95220.95131.03640.72611.0330.95980.99820.3863.21190.9696
GMI 0.92591.03470.91671.15880.97710.93331.05320.96461.10180.9988
AQI 0.86341.00781.43571.07450.81870.88821.25950.9531.23411.0161
SGI 1.14511.18061.06071.39980.94681.04011.12861.05961.13221.1119
DEPI 1.10331.11021.03971.04711.07081.03070.99130.93290.98131.0729
SGAI 1.02371.0951.01710.94681.08871.20460.87531.00421.0641.0728
LVGI 1.07470.92261.2261.17450.730.89635.17061.06050.83310.774
TATA -0.0469-0.0445-0.0457-0.0432-0.0598-0.0392-0.0726-0.0435-0.0171-0.0579
M-score -2.72-2.53-2.55-2.51-2.78-2.74-3.92-3.26-0.22-2.60

Copart Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 1.03621.21491.14833.21191.08150.98411.0390.96961.01111.009
GMI 0.95761.01651.0591.10181.15041.08051.03630.99880.94610.9463
AQI 1.07341.06611.0111.23411.2721.21951.32611.01610.91610.6947
SGI 1.0591.07731.10531.13221.161.13521.12931.11191.07961.0507
DEPI 0.98781.051.03420.98130.93430.97420.99961.07291.08961.0684
SGAI 1.00661.03061.04491.0641.11541.1211.13231.07280.99950.9527
LVGI 0.90330.8370.84240.83310.82420.83170.82370.7740.78351.1927
TATA -0.046-0.006-0.0271-0.0171-0.0153-0.0322-0.0405-0.0579-0.0598-0.0438
M-score -2.57-2.15-2.29-0.22-2.11-2.36-2.33-2.60-2.66-2.83
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