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Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
Beneish M-Score
-3.18 (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 -3.18 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: -3.18

-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 -2.52.


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 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 * 0.7772+0.528 * 0.9233+0.404 * 0.658+0.892 * 1.0086+0.115 * 1.476
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1023+4.679 * -0.0801-0.327 * 0.9528
=-3.18

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Nov16) TTM:Last Year (Nov15) TTM:
Accounts Receivable was USD 3.39 Mil.
Revenue was 10.422 + 10.523 + 14.459 + 11.188 = USD 46.59 Mil.
Gross Profit was 2.394 + 2.144 + 3.177 + 2.036 = USD 9.75 Mil.
Total Current Assets was USD 16.84 Mil.
Total Assets was USD 20.10 Mil.
Property, Plant and Equipment(Net PPE) was USD 3.13 Mil.
Depreciation, Depletion and Amortization(DDA) was USD 0.27 Mil.
Selling, General & Admin. Expense(SGA) was USD 5.96 Mil.
Total Current Liabilities was USD 2.06 Mil.
Long-Term Debt was USD 0.00 Mil.
Net Income was 0.486 + 0.552 + 0.909 + 0.132 = USD 2.08 Mil.
Non Operating Income was 0 + 0 + 0 + -0.11 = USD -0.11 Mil.
Cash Flow from Operations was 0.605 + 0.46 + 1.435 + 1.299 = USD 3.80 Mil.
Accounts Receivable was USD 4.32 Mil.
Revenue was 11.942 + 11.483 + 13.289 + 9.483 = USD 46.20 Mil.
Gross Profit was 2.38 + 2.403 + 2.242 + 1.902 = USD 8.93 Mil.
Total Current Assets was USD 17.90 Mil.
Total Assets was USD 20.29 Mil.
Property, Plant and Equipment(Net PPE) was USD 2.19 Mil.
Depreciation, Depletion and Amortization(DDA) was USD 0.29 Mil.
Selling, General & Admin. Expense(SGA) was USD 5.36 Mil.
Total Current Liabilities was USD 2.18 Mil.
Long-Term Debt was USD 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)
=(3.386 / 46.592) / (4.32 / 46.197)
=0.07267342 / 0.09351257
=0.7772

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)
=(8.927 / 46.197) / (9.751 / 46.592)
=0.19323766 / 0.20928486
=0.9233

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 - (16.836 + 3.13) / 20.099) / (1 - (17.896 + 2.185) / 20.285)
=0.00661724 / 0.01005669
=0.658

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
=46.592 / 46.197
=1.0086

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))
=(0.289 / (0.289 + 2.185)) / (0.269 / (0.269 + 3.13))
=0.11681487 / 0.07914092
=1.476

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)
=(5.959 / 46.592) / (5.36 / 46.197)
=0.12789749 / 0.11602485
=1.1023

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 + 2.06) / 20.099) / ((0 + 2.182) / 20.285)
=0.10249266 / 0.10756717
=0.9528

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
=(2.079 - -0.11 - 3.799) / 20.099
=-0.0801

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 -3.18 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 local exchange's currency.

Jewett-Cameron Trading Co Ltd Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
DSRI 1.01950.91961.01781.08930.99440.72651.00820.85021.51330.7956
GMI 0.89380.94070.8380.96821.12951.02760.94261.00810.9930.9846
AQI 5.74230.93361.07520.80130.8970.82020.58490.9670.75210.6655
SGI 0.92670.91210.6550.98681.01161.09251.07270.85910.99761.139
DEPI 0.85170.92930.99651.20130.97171.13941.06240.89971.01551.3131
SGAI 1.01940.99221.350.9490.89590.87950.94551.19161.04140.9846
LVGI 0.89980.75440.38310.83682.01690.96670.87650.57181.4691.0901
TATA 0.0883-0.1472-0.1006-0.03190.0112-0.11350.07190.0748-0.0538-0.046
M-score -0.24-3.31-3.16-2.57-2.71-3.19-2.21-2.31-2.52-2.89

Jewett-Cameron Trading Co Ltd Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
DSRI 0.85021.3791.22311.09471.51331.45430.66030.72550.79550.7772
GMI 1.00791.01721.01971.04180.99311.02711.07360.9610.98470.9233
AQI 0.9670.93980.90880.84850.75210.67780.7060.61380.66550.658
SGI 0.85910.88170.9670.9140.99761.09171.13871.22621.13911.0086
DEPI 0.89680.91960.93210.97731.01870.99521.01910.95661.31311.476
SGAI 1.19161.15151.09351.16031.04140.97190.96070.91190.98451.1023
LVGI 0.57181.35741.07960.83921.4691.40160.87171.4181.09010.9528
TATA 0.07480.12610.1820.0473-0.0537-0.0914-0.3023-0.1494-0.046-0.0801
M-score -2.31-1.81-1.53-2.27-2.52-2.65-4.11-3.53-2.89-3.18
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