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Carlisle Companies Inc (NYSE:CSL)
Beneish M-Score
-2.81 (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 -2.81 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: -2.81

-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 * 0.9238+0.528 * 0.8589+0.404 * 0.9588+0.892 * 1.0744+0.115 * 0.9326
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1072+4.679 * -0.0463-0.327 * 0.9702
=-2.81

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $632 Mil.
Revenue was 996.9 + 794 + 876.2 + 973.1 = $3,640 Mil.
Gross Profit was 321.2 + 245.4 + 252.8 + 295.5 = $1,115 Mil.
Total Current Assets was $1,462 Mil.
Total Assets was $4,172 Mil.
Property, Plant and Equipment(Net PPE) was $626 Mil.
Depreciation, Depletion and Amortization(DDA) was $135 Mil.
Selling, General & Admin. Expense(SGA) was $494 Mil.
Total Current Liabilities was $673 Mil.
Long-Term Debt was $596 Mil.
Net Income was 115.2 + 68.5 + 81.8 + 103.6 = $369 Mil.
Non Operating Income was 1.2 + 0.6 + 0 + 0 = $2 Mil.
Cash Flow from Operations was 70.9 + 109 + 176.3 + 204.1 = $560 Mil.
Accounts Receivable was $637 Mil.
Revenue was 984.6 + 709.3 + 790 + 904.1 = $3,388 Mil.
Gross Profit was 285.4 + 173 + 195.7 + 237.1 = $891 Mil.
Total Current Assets was $1,339 Mil.
Total Assets was $4,013 Mil.
Property, Plant and Equipment(Net PPE) was $583 Mil.
Depreciation, Depletion and Amortization(DDA) was $116 Mil.
Selling, General & Admin. Expense(SGA) was $415 Mil.
Total Current Liabilities was $510 Mil.
Long-Term Debt was $749 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)
=(631.8 / 3640.2) / (636.5 / 3388)
=0.17356189 / 0.18786895
=0.9238

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)
=(891.2 / 3388) / (1114.9 / 3640.2)
=0.26304604 / 0.30627438
=0.8589

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 - (1461.8 + 626.4) / 4171.7) / (1 - (1339.4 + 583.4) / 4013.4)
=0.49943668 / 0.52090497
=0.9588

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
=3640.2 / 3388
=1.0744

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))
=(115.5 / (115.5 + 583.4)) / (134.9 / (134.9 + 626.4))
=0.16525969 / 0.1771969
=0.9326

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)
=(493.8 / 3640.2) / (415.1 / 3388)
=0.13565189 / 0.12252066
=1.1072

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 + 673.3) / 4171.7) / ((748.5 + 510.2) / 4013.4)
=0.30426445 / 0.31362436
=0.9702

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
=(369.1 - 1.8 - 560.3) / 4171.7
=-0.0463

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 -2.81 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 2.01990.82930.85581.19391.21661.26160.74330.9361.00961.0346
GMI 0.96051.01841.10550.87861.03810.89250.87121.06180.99050.9002
AQI 0.77071.09091.1351.1921.1341.12251.18940.80921.01781.2173
SGI 1.07271.13711.16210.72611.11940.9861.1441.03221.08871.1059
DEPI 0.99910.92841.04940.92761.07540.87510.73770.98721.16720.8831
SGAI 0.98811.05871.00431.19441.01120.97591.04330.96090.98421.1021
LVGI 0.93020.83741.05340.69271.42591.1240.9240.91250.94131.0027
TATA 0.0991-0.0493-0.1052-0.14240.0151-0.0035-0.0624-0.0587-0.0119-0.053
M-score -1.10-2.66-2.86-3.14-2.16-2.33-2.88-2.80-2.40-2.60

Carlisle Companies Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.69980.70870.69861.00960.98681.06460.99391.03461.01990.9238
GMI 1.07211.07821.07510.99051.00140.96940.93920.90020.85560.8589
AQI 0.8860.90940.9221.01781.02431.32261.32981.21731.21190.9588
SGI 1.14351.26291.37251.08871.10091.11791.10171.10591.11191.0744
DEPI 0.80350.9110.97531.16721.09040.99880.89130.88310.88660.9326
SGAI 0.9160.89350.87690.9840.98321.02321.08481.10211.14011.1072
LVGI 0.93270.91920.90660.94130.940.97010.96741.00271.01180.9702
TATA -0.067-0.02960.0011-0.0119-0.0106-0.0247-0.0473-0.0528-0.0595-0.0463
M-score -2.94-2.61-2.36-2.40-2.41-2.31-2.53-2.60-2.67-2.81
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