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Carlisle Companies Inc (NYSE:CSL)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

CSL' s 10-Year Beneish M-Score Range
Min: -3.47   Max: -1.16
Current: -2.49

-3.47
-1.16

During the past 13 years, the highest Beneish M-Score of Carlisle Companies Inc was -1.16. The lowest was -3.47. 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 * 1.387+0.528 * 0.8486+0.404 * 0.922+0.892 * 0.6912+0.115 * 0.9753
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0476+4.679 * 0.0011-0.327 * 0.9066
=-2.49

* 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 + 121.1 = $2,535 Mil.
Gross Profit was 237.1 + 224.6 + 162.1 + 83 = $707 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 $315 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 968.8 + 996.1 + 857 + 845.6 = $3,668 Mil.
Gross Profit was 234.8 + 240.2 + 187.6 + 205.1 = $868 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 $434 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 / 2535.1) / (572.3 / 3667.5)
=0.21644117 / 0.15604635
=1.387

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 / 3667.5) / (237.1 / 2535.1)
=0.23659168 / 0.27880557
=0.8486

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
=2535.1 / 3667.5
=0.6912

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)
=(314.5 / 2535.1) / (434.3 / 3667.5)
=0.12405822 / 0.11841854
=1.0476

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 -2.49 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 0.98360.72381.86970.92560.83431.15221.25840.97520.88171.0294
GMI 0.93770.95620.97781.00181.05710.90581.01250.99610.8490.9763
AQI 0.93841.15440.77560.92411.42621.07531.1731.11941.0780.8953
SGI 1.05670.99191.16421.11811.0330.80081.06231.27571.12560.8109
DEPI 1.13910.94030.95571.04990.85381.04191.0330.88020.95450.7585
SGAI 0.98120.97730.96941.05491.05681.15561.01140.95081.0091.0199
LVGI 0.97170.97760.9420.82911.05340.69271.42591.13950.91160.9123
TATA -0.0215-0.06530.0986-0.0469-0.1054-0.15810.0151-0.0035-0.0624-0.0587
M-score -2.57-3.00-1.16-2.64-2.94-3.20-2.18-2.28-2.79-2.95

Carlisle Companies Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.88740.89370.88160.83440.93290.98581.02941.0521.24251.387
GMI 0.91890.88820.84910.8920.96661.00690.97610.92320.87820.8486
AQI 1.16041.11161.0781.08711.04260.98510.89530.8860.90940.922
SGI 1.23691.16721.12571.05181.02121.02620.81080.76070.72040.6912
DEPI 0.96630.93380.95450.95850.91820.94610.75850.80350.9110.9753
SGAI 0.96540.9481.00891.02381.02061.02371.01991.0331.05311.0476
LVGI 1.05390.9380.91160.88940.95561.06350.91230.93270.91920.9066
TATA -0.0263-0.0415-0.0624-0.0608-0.0781-0.0807-0.0587-0.067-0.02960.0011
M-score -2.49-2.62-2.79-2.87-2.89-2.88-2.95-3.05-2.74-2.49
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