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Carlisle Companies Inc (NYSE:CSL)
Beneish M-Score
-2.70 (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 -2.70 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: -2.7

-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 * 0.9516+0.528 * 0.8791+0.404 * 0.9641+0.892 * 1.0582+0.115 * 0.9818
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0845+4.679 * -0.0349-0.327 * 0.9137
=-2.70

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $605 Mil.
Revenue was 991 + 996.9 + 794 + 876.2 = $3,658 Mil.
Gross Profit was 323.6 + 321.2 + 245.4 + 252.8 = $1,143 Mil.
Total Current Assets was $1,400 Mil.
Total Assets was $3,963 Mil.
Property, Plant and Equipment(Net PPE) was $624 Mil.
Depreciation, Depletion and Amortization(DDA) was $136 Mil.
Selling, General & Admin. Expense(SGA) was $508 Mil.
Total Current Liabilities was $524 Mil.
Long-Term Debt was $596 Mil.
Net Income was -9.8 + 115.2 + 68.5 + 81.8 = $256 Mil.
Non Operating Income was -139.3 + 1.2 + 0.6 + 0 = $-138 Mil.
Cash Flow from Operations was 175.2 + 70.9 + 109 + 176.3 = $531 Mil.
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.



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)
=(605 / 3658.1) / (600.8 / 3457)
=0.1653864 / 0.17379231
=0.9516

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)
=(949.6 / 3457) / (1143 / 3658.1)
=0.27468904 / 0.31245729
=0.8791

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 - (1399.7 + 623.6) / 3963.3) / (1 - (1426.4 + 580) / 4075.6)
=0.48949108 / 0.50770439
=0.9641

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
=3658.1 / 3457
=1.0582

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))
=(123.6 / (123.6 + 580)) / (135.9 / (135.9 + 623.6))
=0.17566799 / 0.17893351
=0.9818

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)
=(507.7 / 3658.1) / (442.4 / 3457)
=0.1387879 / 0.12797223
=1.0845

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)
=((596.2 + 523.6) / 3963.3) / ((598.7 + 661.6) / 4075.6)
=0.28254233 / 0.30923054
=0.9137

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
=(255.7 - -137.5 - 531.4) / 3963.3
=-0.0349

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 -2.70 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 local exchange's currency.

Carlisle Companies Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 2.01990.82930.85581.15431.25840.97520.88171.02941.00131.0346
GMI 0.96051.01841.10550.90081.01250.99610.8490.97630.99050.9002
AQI 0.77071.09091.1351.15241.1731.11941.0780.89531.01781.2173
SGI 1.07271.13711.16210.76511.06231.27571.12560.81091.08871.1059
DEPI 0.99910.92841.04940.96571.0330.88020.95450.75851.16720.8831
SGAI 0.98811.05871.00431.19421.01140.95081.0091.01990.98421.1021
LVGI 0.93020.83741.05340.69271.42591.13950.91160.91230.94131.0027
TATA 0.0991-0.0493-0.1052-0.15810.0151-0.0035-0.0624-0.0587-0.0119-0.053
M-score -1.10-2.66-2.86-3.21-2.18-2.28-2.79-2.95-2.41-2.60

Carlisle Companies Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.24251.3871.00130.91110.91330.8031.03461.01990.92380.9516
GMI 0.87820.84860.99051.0341.03021.0150.90020.85560.85890.8791
AQI 0.90940.9221.01781.02431.32261.32981.21731.21190.95880.9641
SGI 0.72040.69121.08871.19241.30321.36371.10591.11191.07441.0582
DEPI 0.9110.97531.16721.09040.99880.89130.88310.88660.93260.9818
SGAI 1.05311.04760.98420.95760.97741.03151.10211.14011.10721.0845
LVGI 0.91920.90660.94130.940.97010.96741.00271.01180.97020.9137
TATA -0.02960.0011-0.0119-0.0105-0.0249-0.0474-0.053-0.0597-0.0463-0.0349
M-score -2.74-2.49-2.41-2.37-2.25-2.42-2.60-2.67-2.81-2.70
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