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Carlisle Companies Inc (NYSE:CSL)
Beneish M-Score
-2.25 (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 -2.25 suggests that the company is not a manipulator.

CSL' s 10-Year Beneish M-Score Range
Min: -3.46   Max: -1.1
Current: -2.25

-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 -2.51.


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 * 0.9133+0.528 * 1.0302+0.404 * 1.3226+0.892 * 1.3032+0.115 * 0.9988
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9774+4.679 * -0.0249-0.327 * 0.9701
=-2.25

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was 94.9 + 39.4 + 52.9 + 87.3 = $275 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 99.3 + 49.5 + 131.2 + 94.3 = $374 Mil.
Accounts Receivable was $535 Mil.
Revenue was 859.5 + 650.4 + 121.1 + 968.8 = $2,600 Mil.
Gross Profit was 224.6 + 162.1 + 83 + 234.8 = $705 Mil.
Total Current Assets was $1,689 Mil.
Total Assets was $3,657 Mil.
Property, Plant and Equipment(Net PPE) was $528 Mil.
Depreciation, Depletion and Amortization(DDA) was $104 Mil.
Selling, General & Admin. Expense(SGA) was $326 Mil.
Total Current Liabilities was $431 Mil.
Long-Term Debt was $751 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)
=(636.5 / 3388) / (534.8 / 2599.8)
=0.18786895 / 0.20570813
=0.9133

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)
=(173 / 2599.8) / (285.4 / 3388)
=0.27098238 / 0.26304604
=1.0302

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 - (1339.4 + 583.4) / 4013.4) / (1 - (1689 + 527.6) / 3656.9)
=0.52090497 / 0.39385819
=1.3226

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
=3388 / 2599.8
=1.3032

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))
=(104.3 / (104.3 + 527.6)) / (115.5 / (115.5 + 583.4))
=0.16505776 / 0.16525969
=0.9988

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)
=(415.1 / 3388) / (325.9 / 2599.8)
=0.12252066 / 0.1253558
=0.9774

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)
=((748.5 + 510.2) / 4013.4) / ((751.2 + 431.1) / 3656.9)
=0.31362436 / 0.32330663
=0.9701

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
=(274.5 - 0 - 374.3) / 4013.4
=-0.0249

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 -2.25 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.73372.01990.82930.85581.15431.25840.97520.88171.02941.0013
GMI 0.94410.96051.01841.10550.90081.01250.99610.8490.97630.9905
AQI 0.97330.77071.09091.1351.15241.1731.11941.0780.89531.0178
SGI 1.09881.07271.13711.16210.76511.06231.27571.12560.81091.0887
DEPI 1.18410.99910.92841.04940.96571.0330.88020.95450.75851.1672
SGAI 0.96340.98811.05871.00431.19421.01140.95081.0091.01990.9842
LVGI 0.98030.93020.83741.05340.69271.42591.13950.91160.91230.9413
TATA -0.06080.0991-0.0493-0.1052-0.15810.0151-0.0035-0.0624-0.0587-0.0119
M-score -2.93-1.10-2.66-2.86-3.21-2.18-2.28-2.79-2.95-2.41

Carlisle Companies Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.83440.93290.98581.02941.0521.24251.3871.00130.91110.9133
GMI 0.8920.96661.00690.97610.92320.87820.84860.99051.0341.0302
AQI 1.08711.04260.98510.89530.8860.90940.9221.01781.02431.3226
SGI 1.05181.02121.02620.81080.76070.72040.69121.08871.19241.3032
DEPI 0.95850.91820.94610.75850.80350.9110.97531.16721.09040.9988
SGAI 1.02381.02061.02371.01991.0331.05311.04760.98420.95760.9774
LVGI 0.88940.95561.06350.91230.93270.91920.90660.94130.940.9701
TATA -0.0608-0.0781-0.0807-0.0587-0.067-0.02960.0011-0.0119-0.0105-0.0249
M-score -2.87-2.89-2.88-2.95-3.05-2.74-2.49-2.41-2.37-2.25
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