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Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
Beneish M-Score
-2.21 (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 -2.21 signals that the company is a manipulator.

JCTCF' s 10-Year Beneish M-Score Range
Min: -3.78   Max: 0.99
Current: -2.21

-3.78
0.99

During the past 13 years, the highest Beneish M-Score of Jewett-Cameron Trading Co Ltd was 0.99. The lowest was -3.78. And the median was -2.43.


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 * 1.2266+0.528 * 0.9661+0.404 * 0.8612+0.892 * 0.886+0.115 * 0.9563
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1348+4.679 * 0.0773-0.327 * 1.3079
=-2.21

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

This Year (May14) TTM:Last Year (May13) TTM:
Accounts Receivable was $5.26 Mil.
Revenue was 15.336 + 9.733 + 8.006 + 10.71 = $43.79 Mil.
Gross Profit was 2.951 + 1.758 + 1.85 + 2.37 = $8.93 Mil.
Total Current Assets was $18.07 Mil.
Total Assets was $20.56 Mil.
Property, Plant and Equipment(Net PPE) was $2.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General & Admin. Expense(SGA) was $4.91 Mil.
Total Current Liabilities was $2.22 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.936 + 0.237 + 0.333 + 0.842 = $2.35 Mil.
Non Operating Income was 0 + 0 + 0.004 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.677 + -1.693 + -0.159 + 0.93 = $0.76 Mil.
Accounts Receivable was $4.84 Mil.
Revenue was 15.052 + 14.228 + 9.296 + 10.84 = $49.42 Mil.
Gross Profit was 3.03 + 2.44 + 1.991 + 2.275 = $9.74 Mil.
Total Current Assets was $19.21 Mil.
Total Assets was $21.59 Mil.
Property, Plant and Equipment(Net PPE) was $2.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.25 Mil.
Selling, General & Admin. Expense(SGA) was $4.88 Mil.
Total Current Liabilities was $1.78 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)
=(5.256 / 43.785) / (4.836 / 49.416)
=0.12004111 / 0.09786304
=1.2266

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)
=(1.758 / 49.416) / (2.951 / 43.785)
=0.19702121 / 0.20392829
=0.9661

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 - (18.068 + 2.177) / 20.56) / (1 - (19.206 + 1.996) / 21.586)
=0.01532101 / 0.01778931
=0.8612

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
=43.785 / 49.416
=0.886

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))
=(0.245 / (0.245 + 1.996)) / (0.281 / (0.281 + 2.177))
=0.10932619 / 0.11432059
=0.9563

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)
=(4.907 / 43.785) / (4.88 / 49.416)
=0.11207034 / 0.09875344
=1.1348

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 + 2.215) / 20.56) / ((0 + 1.778) / 21.586)
=0.10773346 / 0.0823682
=1.3079

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
=(2.348 - 0.004 - 0.755) / 20.56
=0.0773

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 -2.21 signals that the company is likely to 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

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
DSRI 0.76140.93231.03931.01890.91961.02941.08880.99430.72341.0062
GMI 1.20520.9280.83620.89380.94070.8380.96821.12951.02760.9426
AQI 0.43554.46890.77755.74230.93361.07520.80130.8970.82020.5849
SGI 1.28841.0461.01980.92670.91210.6550.98681.01161.09251.0727
DEPI 1.01640.85121.15450.85170.92930.99651.20130.97171.13941.0624
SGAI 0.77991.0591.04071.01940.99221.350.9490.89590.87950.9455
LVGI 1.00010.78990.74760.89980.75440.38310.83682.01690.96670.8765
TATA 0.014-0.17240.04490.0883-0.1472-0.1006-0.03190.0112-0.11350.0719
M-score -2.46-1.90-2.30-0.24-3.31-3.15-2.57-2.71-3.19-2.21

Jewett-Cameron Trading Co Ltd Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
DSRI 0.67051.1050.72340.82961.55120.86561.00620.83920.6771.2266
GMI 1.10741.07191.02770.98750.99860.93050.94260.94560.91010.9661
AQI 0.98080.92270.82020.79910.5430.5440.58490.62520.77410.8612
SGI 0.96931.03141.09251.11081.17111.06721.07270.99990.86180.886
DEPI 0.98550.98191.13971.19651.16071.14221.05850.96730.97010.9563
SGAI 0.95920.90260.87970.86090.81550.9370.94531.04721.17631.1349
LVGI 0.71990.69260.96670.64870.98190.69160.87650.50140.75031.3079
TATA -0.1214-0.042-0.1135-0.14220.1029-0.01790.07190.0795-0.00180.0773
M-score -3.23-2.43-3.19-3.13-1.47-2.72-2.21-2.29-3.00-2.21
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