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Carlisle Companies Inc (NYSE:CSL)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

CSL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.46   Max: -1.1
Current: -2.67

-3.46
-1.1

During the past 13 years, the highest Beneish M-Score of Carlisle Companies Inc was -1.10. The lowest was -3.46. And the median was -2.50.


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 * 1.0199+0.528 * 0.8556+0.404 * 1.2119+0.892 * 1.1119+0.115 * 0.8866
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1401+4.679 * -0.0597-0.327 * 1.0118
=-2.67

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $508 Mil.
Revenue was 794 + 876.2 + 973.1 + 984.6 = $3,628 Mil.
Gross Profit was 245.4 + 252.8 + 295.5 + 285.4 = $1,079 Mil.
Total Current Assets was $1,383 Mil.
Total Assets was $4,026 Mil.
Property, Plant and Equipment(Net PPE) was $592 Mil.
Depreciation, Depletion and Amortization(DDA) was $135 Mil.
Selling, General & Admin. Expense(SGA) was $488 Mil.
Total Current Liabilities was $629 Mil.
Long-Term Debt was $596 Mil.
Net Income was 68.5 + 81.8 + 103.6 + 94.9 = $349 Mil.
Non Operating Income was 0.6 + 0 + 0 + 0 = $1 Mil.
Cash Flow from Operations was 109 + 176.3 + 204.1 + 99.3 = $589 Mil.
Accounts Receivable was $448 Mil.
Revenue was 709.3 + 790 + 904.1 + 859.5 = $3,263 Mil.
Gross Profit was 173 + 195.7 + 237.1 + 224.6 = $830 Mil.
Total Current Assets was $1,631 Mil.
Total Assets was $3,751 Mil.
Property, Plant and Equipment(Net PPE) was $544 Mil.
Depreciation, Depletion and Amortization(DDA) was $107 Mil.
Selling, General & Admin. Expense(SGA) was $385 Mil.
Total Current Liabilities was $378 Mil.
Long-Term Debt was $750 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)
=(507.7 / 3627.9) / (447.7 / 3262.9)
=0.13994322 / 0.13720923
=1.0199

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)
=(252.8 / 3262.9) / (245.4 / 3627.9)
=0.25449753 / 0.2974448
=0.8556

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 - (1382.7 + 592.3) / 4025.8) / (1 - (1630.7 + 543.6) / 3751)
=0.50941428 / 0.42034124
=1.2119

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
=3627.9 / 3262.9
=1.1119

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))
=(106.7 / (106.7 + 543.6)) / (134.5 / (134.5 + 592.3))
=0.16407812 / 0.18505779
=0.8866

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)
=(487.9 / 3627.9) / (384.9 / 3262.9)
=0.13448552 / 0.11796255
=1.1401

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)
=((595.8 + 628.8) / 4025.8) / ((749.9 + 377.8) / 3751)
=0.30418799 / 0.30063983
=1.0118

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
=(348.8 - 0.6 - 588.7) / 4025.8
=-0.0597

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 -2.67 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.86120.84340.96281.10281.25840.97520.88171.02941.00131.0346
GMI 0.97781.00181.05710.90581.01250.99610.8490.97630.99050.9002
AQI 0.77071.09091.1351.15241.1731.11941.0780.89531.01781.2173
SGI 1.16421.11811.0330.80081.06231.27571.12560.81091.08871.1059
DEPI 0.95010.92841.04940.96571.0330.88020.95450.75851.16720.8831
SGAI 0.96941.05491.05681.15561.01140.95081.0091.01990.98421.1021
LVGI 0.93020.83741.05340.69271.42591.13950.91160.91230.94131.0027
TATA 0.1027-0.022-0.1054-0.15810.0151-0.0035-0.0624-0.0587-0.0119-0.053
M-score -1.14-2.55-2.91-3.22-2.18-2.28-2.79-2.95-2.41-2.60

Carlisle Companies Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.02941.0521.24251.3871.00130.91110.91330.8031.03461.0199
GMI 0.97610.92320.87820.84860.99051.0341.03021.0150.90020.8556
AQI 0.89530.8860.90940.9221.01781.02431.32261.32981.21731.2119
SGI 0.81080.76070.72040.69121.08871.19241.30321.36371.10591.1119
DEPI 0.75850.80350.9110.97531.16721.09040.99880.89130.88310.8866
SGAI 1.01991.0331.05311.04760.98420.95760.97741.03151.10211.1401
LVGI 0.91230.93270.91920.90660.94130.940.97010.96741.00271.0118
TATA -0.0587-0.067-0.02960.0011-0.0119-0.0105-0.0249-0.0474-0.053-0.0597
M-score -2.95-3.05-2.74-2.49-2.41-2.37-2.25-2.42-2.60-2.67
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