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Copart Inc (NAS:CPRT)
Beneish M-Score
-2.34 (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 -2.34 suggests that the company is not a manipulator.

CPRT' s 10-Year Beneish M-Score Range
Min: -3.98   Max: -2.05
Current: -2.34

-3.98
-2.05

During the past 13 years, the highest Beneish M-Score of Copart Inc was -2.05. The lowest was -3.98. 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 * 1.0296+0.528 * 1.0363+0.404 * 1.3261+0.892 * 1.1293+0.115 * 0.9996
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1323+4.679 * -0.0405-0.327 * 0.8237
=-2.34

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $196 Mil.
Revenue was 309.722 + 286.434 + 279.883 + 263.697 = $1,140 Mil.
Gross Profit was 132.252 + 111.546 + 107.836 + 103.072 = $455 Mil.
Total Current Assets was $386 Mil.
Total Assets was $1,477 Mil.
Property, Plant and Equipment(Net PPE) was $686 Mil.
Depreciation, Depletion and Amortization(DDA) was $55 Mil.
Selling, General & Admin. Expense(SGA) was $163 Mil.
Total Current Liabilities was $257 Mil.
Long-Term Debt was $242 Mil.
Net Income was 40.877 + 45.345 + 41.422 + 41.304 = $169 Mil.
Non Operating Income was 0.708 + 1.17 + 1.423 + 1.466 = $5 Mil.
Cash Flow from Operations was 131.843 + 8.076 + 67.715 + 16.323 = $224 Mil.
Accounts Receivable was $169 Mil.
Revenue was 277.638 + 266.185 + 238.866 + 226.556 = $1,009 Mil.
Gross Profit was 115.597 + 96.817 + 105.436 + 99.426 = $417 Mil.
Total Current Assets was $353 Mil.
Total Assets was $1,299 Mil.
Property, Plant and Equipment(Net PPE) was $677 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General & Admin. Expense(SGA) was $128 Mil.
Total Current Liabilities was $218 Mil.
Long-Term Debt was $314 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)
=(195.968 / 1139.736) / (168.539 / 1009.245)
=0.17194157 / 0.16699513
=1.0296

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)
=(111.546 / 1009.245) / (132.252 / 1139.736)
=0.41345362 / 0.3989573
=1.0363

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 - (385.754 + 685.564) / 1476.672) / (1 - (353.162 + 676.698) / 1298.682)
=0.2745051 / 0.20699602
=1.3261

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
=1139.736 / 1009.245
=1.1293

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))
=(54.099 / (54.099 + 676.698)) / (54.829 / (54.829 + 685.564))
=0.0740274 / 0.07405391
=0.9996

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)
=(163.474 / 1139.736) / (127.842 / 1009.245)
=0.14343146 / 0.12667093
=1.1323

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)
=((242.106 + 256.742) / 1476.672) / ((314.23 + 218.377) / 1298.682)
=0.3378191 / 0.41011348
=0.8237

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
=(168.948 - 4.767 - 223.957) / 1476.672
=-0.0405

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 -2.34 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

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
DSRI 0.93640.98090.96611.04510.82580.92641.00630.9451.04171.2011
GMI 0.87111.07451.02240.91671.15880.97710.93331.05320.96461.1018
AQI 0.91160.86341.00781.44891.06470.81870.88821.25950.95211.2352
SGI 1.15361.14051.15631.06071.39980.94681.04011.12861.05961.1322
DEPI 0.88621.10651.14571.03971.04711.07081.03070.99130.93290.9813
SGAI 1.10121.12961.08581.01710.94681.08871.20460.87531.00421.064
LVGI 1.01771.07450.92261.13841.26490.730.89135.19951.06160.8323
TATA -0.0594-0.0469-0.0445-0.0461-0.0432-0.0598-0.0392-0.0726-0.0435-0.0171
M-score -2.82-2.64-2.54-2.51-2.45-2.88-2.70-3.98-2.66-2.07

Copart Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
DSRI 1.00371.01071.04171.03871.26621.14391.20111.08330.94951.0296
GMI 1.00160.99710.96550.95761.01651.0591.10181.15041.08051.0363
AQI 1.14811.02060.95211.07341.06611.0111.23521.2721.21951.3261
SGI 1.09011.07771.05961.0591.07731.10531.13221.161.13521.1293
DEPI 0.95770.92250.93290.98781.051.03420.98130.93430.97420.9996
SGAI 0.90010.92671.00091.00661.03061.04491.0641.11541.1211.1323
LVGI 1.20871.13861.06160.90330.8370.84240.83230.82420.83170.8237
TATA -0.0619-0.0532-0.0435-0.046-0.006-0.0271-0.0171-0.0153-0.0322-0.0405
M-score -2.68-2.68-2.66-2.57-2.11-2.30-2.07-2.11-2.39-2.34
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