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Carlisle Companies Inc (NYSE:CSL)
Beneish M-Score
-2.53 (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.

Carlisle Companies Inc has a M-score of -2.53 suggests that the company is not a manipulator.

CSL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38   Max: -1.1
Current: -2.53

-3.38
-1.1

During the past 13 years, the highest Beneish M-Score of Carlisle Companies Inc was -1.10. The lowest was -3.38. And the median was -2.51.


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 Carlisle Companies 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 * 0.9939+0.528 * 0.9392+0.404 * 1.3298+0.892 * 1.1017+0.115 * 0.8913
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0848+4.679 * -0.0474-0.327 * 0.9674
=-2.53

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $601 Mil.
Revenue was 973.1 + 984.6 + 709.3 + 790 = $3,457 Mil.
Gross Profit was 295.5 + 285.4 + 173 + 195.7 = $950 Mil.
Total Current Assets was $1,426 Mil.
Total Assets was $4,076 Mil.
Property, Plant and Equipment(Net PPE) was $580 Mil.
Depreciation, Depletion and Amortization(DDA) was $124 Mil.
Selling, General & Admin. Expense(SGA) was $442 Mil.
Total Current Liabilities was $662 Mil.
Long-Term Debt was $599 Mil.
Net Income was 103.6 + 94.9 + 39.4 + 52.9 = $291 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 204.1 + 99.3 + 49.5 + 131.2 = $484 Mil.
Accounts Receivable was $549 Mil.
Revenue was 904.1 + 859.5 + 650.4 + 724 = $3,138 Mil.
Gross Profit was 237.1 + 224.6 + 162.1 + 185.8 = $810 Mil.
Total Current Assets was $1,761 Mil.
Total Assets was $3,718 Mil.
Property, Plant and Equipment(Net PPE) was $538 Mil.
Depreciation, Depletion and Amortization(DDA) was $100 Mil.
Selling, General & Admin. Expense(SGA) was $370 Mil.
Total Current Liabilities was $437 Mil.
Long-Term Debt was $751 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)
=(600.8 / 3457) / (548.7 / 3138)
=0.17379231 / 0.1748566
=0.9939

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)
=(285.4 / 3138) / (295.5 / 3457)
=0.25799873 / 0.27468904
=0.9392

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 - (1426.4 + 580) / 4075.6) / (1 - (1761.1 + 537.6) / 3718.4)
=0.50770439 / 0.381804
=1.3298

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
=3457 / 3138
=1.1017

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))
=(99.8 / (99.8 + 537.6)) / (123.6 / (123.6 + 580))
=0.15657358 / 0.17566799
=0.8913

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)
=(442.4 / 3457) / (370.2 / 3138)
=0.12797223 / 0.11797323
=1.0848

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)
=((598.7 + 661.6) / 4075.6) / ((751.3 + 437.3) / 3718.4)
=0.30923054 / 0.31965361
=0.9674

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
=(290.8 - 0 - 484.1) / 4075.6
=-0.0474

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.

Carlisle Companies Inc has a M-score of -2.53 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.

Carlisle Companies Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.73372.01990.82930.85581.19391.21660.97520.96170.9361.0096
GMI 0.94410.96051.01841.10550.87861.03810.99610.78061.06180.9905
AQI 0.97330.77071.09091.1351.1921.1341.12251.18940.80921.0178
SGI 1.09881.07271.13711.16210.72611.11941.27570.88421.03221.0887
DEPI 1.18410.99910.92841.04940.92761.07540.87510.73770.98721.1672
SGAI 0.96340.98811.05871.00431.19441.01120.95081.07090.96090.9842
LVGI 0.98030.93020.83741.05340.69271.42591.1240.9240.91250.9413
TATA -0.06080.0991-0.0493-0.1052-0.14240.0151-0.0035-0.0624-0.0587-0.0119
M-score -2.93-1.10-2.66-2.86-3.14-2.16-2.27-2.97-2.80-2.40

Carlisle Companies Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.40291.58130.93610.69980.70870.69861.00960.98681.06460.9939
GMI 0.83660.85881.06161.07211.07821.07510.99051.00140.96940.9392
AQI 1.04260.98510.80920.8860.90940.9221.01781.02431.32261.3298
SGI 0.67910.63981.03211.14351.26291.37251.08871.10091.11791.1017
DEPI 0.91820.94610.98720.80350.9110.97531.16721.09040.99880.8913
SGAI 1.14891.1630.96130.9160.89350.87690.9840.98321.02321.0848
LVGI 0.95561.06350.91250.93270.91920.90660.94130.940.97010.9674
TATA -0.0781-0.0807-0.0587-0.067-0.02960.0011-0.0119-0.0105-0.0249-0.0474
M-score -2.85-2.78-2.80-2.94-2.61-2.36-2.40-2.41-2.31-2.53
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