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Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
Beneish M-Score
-4.11 (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.

Jewett-Cameron Trading Co Ltd has a M-score of -4.11 suggests that the company is not a manipulator.

JCTCF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.11   Max: 0.95
Current: -4.11

-4.11
0.95

During the past 13 years, the highest Beneish M-Score of Jewett-Cameron Trading Co Ltd was 0.95. The lowest was -4.11. And the median was -2.48.


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 Jewett-Cameron Trading Co Ltd 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 * 0.6603+0.528 * 1.0736+0.404 * 0.706+0.892 * 1.1387+0.115 * 1.0191
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9607+4.679 * -0.3023-0.327 * 0.8717
=-4.11

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

This Year (Feb16) TTM:Last Year (Feb15) TTM:
Accounts Receivable was $3.79 Mil.
Revenue was 11.188 + 11.942 + 11.483 + 13.289 = $47.90 Mil.
Gross Profit was 2.036 + 2.38 + 2.403 + 2.242 = $9.06 Mil.
Total Current Assets was $17.59 Mil.
Total Assets was $19.95 Mil.
Property, Plant and Equipment(Net PPE) was $2.17 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.29 Mil.
Selling, General & Admin. Expense(SGA) was $5.62 Mil.
Total Current Liabilities was $1.72 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.132 + 0.532 + 0.702 + 0.461 = $1.83 Mil.
Non Operating Income was -0.11 + 0 + 0 + 0 = $-0.11 Mil.
Cash Flow from Operations was 1.299 + -0.045 + 2.842 + 3.872 = $7.97 Mil.
Accounts Receivable was $5.03 Mil.
Revenue was 9.483 + 7.983 + 9.265 + 15.336 = $42.07 Mil.
Gross Profit was 1.902 + 1.87 + 1.82 + 2.951 = $8.54 Mil.
Total Current Assets was $17.19 Mil.
Total Assets was $19.51 Mil.
Property, Plant and Equipment(Net PPE) was $2.06 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General & Admin. Expense(SGA) was $5.14 Mil.
Total Current Liabilities was $1.93 Mil.
Long-Term Debt was $0.00 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)
=(3.785 / 47.902) / (5.034 / 42.067)
=0.07901549 / 0.11966625
=0.6603

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)
=(2.38 / 42.067) / (2.036 / 47.902)
=0.2030808 / 0.18915703
=1.0736

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 - (17.591 + 2.172) / 19.95) / (1 - (17.191 + 2.059) / 19.509)
=0.00937343 / 0.01327592
=0.706

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
=47.902 / 42.067
=1.1387

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))
=(0.277 / (0.277 + 2.059)) / (0.286 / (0.286 + 2.172))
=0.11857877 / 0.11635476
=1.0191

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)
=(5.621 / 47.902) / (5.138 / 42.067)
=0.11734374 / 0.12213849
=0.9607

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)
=((0 + 1.724) / 19.95) / ((0 + 1.934) / 19.509)
=0.08641604 / 0.09913373
=0.8717

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
=(1.827 - -0.11 - 7.968) / 19.95
=-0.3023

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.

Jewett-Cameron Trading Co Ltd has a M-score of -4.11 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.

Jewett-Cameron Trading Co Ltd Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
DSRI 1.04491.01950.91961.01781.08930.99440.72651.00820.85021.5133
GMI 0.83620.89380.94070.8380.96821.12951.02760.94261.00810.993
AQI 0.77755.74230.93361.07520.80130.8970.82020.58490.9670.7521
SGI 1.01980.92670.91210.6550.98681.01161.09251.07270.85910.9976
DEPI 1.15450.85170.92930.99651.20130.97171.13941.06240.89971.0155
SGAI 1.04071.01940.99221.350.9490.89590.87950.94551.19161.0414
LVGI 0.74760.89980.75440.38310.83682.01690.96670.87650.57181.469
TATA 0.04490.0883-0.1472-0.1006-0.03190.0112-0.11350.07190.0748-0.0538
M-score -2.29-0.24-3.31-3.16-2.57-2.71-3.19-2.21-2.31-2.52

Jewett-Cameron Trading Co Ltd Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
DSRI 0.83920.6771.15250.85021.3791.22311.09471.51331.45430.6603
GMI 0.94560.91010.96611.00791.01721.01971.04180.99311.02711.0736
AQI 0.62520.77410.86120.9670.93980.90880.84850.75210.67780.706
SGI 0.99990.86180.8860.85910.88170.9670.9140.99761.09171.1387
DEPI 0.96730.97010.95630.89680.91960.93210.97731.01870.99521.0191
SGAI 1.04721.17631.13491.19161.15151.09351.16031.04140.97190.9607
LVGI 0.50140.75031.30790.57181.35741.07960.83921.4691.40160.8717
TATA 0.0795-0.00180.07730.07480.12610.1820.0473-0.0537-0.0914-0.3023
M-score -2.29-3.00-2.28-2.31-1.81-1.53-2.27-2.52-2.65-4.11
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