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Carlisle Companies Inc (NYSE:CSL)
Beneish M-Score
-2.36 (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 -2.36 suggests that the company is not a manipulator.

CSL' s 10-Year Beneish M-Score Range
Min: -3.38   Max: -1.1
Current: -2.36

-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 -2.52.


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 * 0.6986+0.528 * 1.0751+0.404 * 0.922+0.892 * 1.3725+0.115 * 0.9753
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8769+4.679 * 0.0011-0.327 * 0.9066
=-2.36

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was 87.3 + 75.2 + 35.8 + 69.7 = $268 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 94.3 + 19.1 + 51.3 + 99.2 = $264 Mil.
Accounts Receivable was $572 Mil.
Revenue was 796.8 + 792.6 + 629.6 + 67.4 = $2,286 Mil.
Gross Profit was 200.3 + 207.1 + 152.4 + 74.4 = $634 Mil.
Total Current Assets was $1,462 Mil.
Total Assets was $3,597 Mil.
Property, Plant and Equipment(Net PPE) was $645 Mil.
Depreciation, Depletion and Amortization(DDA) was $116 Mil.
Selling, General & Admin. Expense(SGA) was $308 Mil.
Total Current Liabilities was $516 Mil.
Long-Term Debt was $753 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)
=(548.7 / 3138) / (572.3 / 2286.4)
=0.1748566 / 0.25030616
=0.6986

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)
=(224.6 / 2286.4) / (237.1 / 3138)
=0.27737929 / 0.25799873
=1.0751

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 - (1761.1 + 537.6) / 3718.4) / (1 - (1462.1 + 645.3) / 3596.9)
=0.381804 / 0.41410659
=0.922

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
=3138 / 2286.4
=1.3725

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))
=(116.3 / (116.3 + 645.3)) / (99.8 / (99.8 + 537.6))
=0.15270483 / 0.15657358
=0.9753

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)
=(370.2 / 3138) / (307.6 / 2286.4)
=0.11797323 / 0.13453464
=0.8769

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)
=((751.3 + 437.3) / 3718.4) / ((752.6 + 515.6) / 3596.9)
=0.31965361 / 0.35258139
=0.9066

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
=(268 - 0 - 263.9) / 3718.4
=0.0011

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 -2.36 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.79270.73372.01990.82930.85581.19391.21660.97520.96170.9437
GMI 1.04310.94410.96051.01841.10550.87861.03810.99610.78061.0618
AQI 1.11110.97330.77071.09091.1351.1921.1341.12251.18940.8092
SGI 1.17961.09881.07271.13711.16210.72611.11941.27570.88421.0322
DEPI 0.69641.18410.99910.92841.04940.92761.07540.87510.73770.9872
SGAI 0.94840.96340.98811.05871.00431.19441.01120.95081.07090.9609
LVGI 0.97340.98030.93020.83741.05340.69271.42591.1240.9240.9125
TATA -0.0247-0.06080.0991-0.0493-0.1052-0.14240.0151-0.0035-0.0624-0.0587
M-score -2.58-2.93-1.10-2.66-2.86-3.14-2.16-2.27-2.97-2.79

Carlisle Companies Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.88740.89370.96161.15821.40291.58130.94380.69980.70870.6986
GMI 0.91890.88820.78080.79320.83660.85881.06161.07211.07821.0751
AQI 1.16041.11161.18941.08711.04260.98510.80920.8860.90940.922
SGI 1.23691.16720.88430.75780.67910.63981.03211.14351.26291.3725
DEPI 0.96630.93380.73770.95850.91820.94610.98720.80350.9110.9753
SGAI 0.96540.9481.07081.12451.14891.1630.96130.9160.89350.8769
LVGI 1.05390.9380.9240.88940.95561.06350.91250.93270.91920.9066
TATA -0.0263-0.0415-0.0624-0.0608-0.0781-0.0807-0.0587-0.067-0.02960.0011
M-score -2.49-2.62-2.97-2.90-2.85-2.78-2.79-2.94-2.61-2.36
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