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Jewett-Cameron Trading Company, Ltd. (NAS:JCTCF)
Beneish M-Score
-3.00 (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 Company, Ltd. has a M-score of -3.00 suggests that the company is not a manipulator.

JCTCF' s 10-Year Beneish M-Score Range
Min: -3.78   Max: 0.99
Current: -3

-3.78
0.99

During the past 13 years, the highest Beneish M-Score of Jewett-Cameron Trading Company, 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 Company, 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 * 0.677+0.528 * 0.9101+0.404 * 0.7741+0.892 * 0.8618+0.115 * 0.9701
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1763+4.679 * -0.0018-0.327 * 0.7503
=-3.00

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

This Year (Feb14) TTM:Last Year (Feb13) TTM:
Accounts Receivable was $4.26 Mil.
Revenue was 9.733 + 8.006 + 10.71 + 15.052 = $43.50 Mil.
Gross Profit was 1.758 + 1.85 + 2.37 + 3.03 = $9.01 Mil.
Total Current Assets was $20.18 Mil.
Total Assets was $22.73 Mil.
Property, Plant and Equipment(Net PPE) was $2.21 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General & Admin. Expense(SGA) was $4.86 Mil.
Total Current Liabilities was $2.09 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.237 + 0.333 + 0.842 + 1.019 = $2.43 Mil.
Non Operating Income was 0 + 0.004 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -1.693 + -0.159 + 0.93 + 3.389 = $2.47 Mil.
Accounts Receivable was $7.30 Mil.
Revenue was 14.228 + 9.296 + 10.84 + 16.113 = $50.48 Mil.
Gross Profit was 2.44 + 1.991 + 2.275 + 2.807 = $9.51 Mil.
Total Current Assets was $19.02 Mil.
Total Assets was $21.41 Mil.
Property, Plant and Equipment(Net PPE) was $1.99 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.24 Mil.
Selling, General & Admin. Expense(SGA) was $4.79 Mil.
Total Current Liabilities was $2.62 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)
=(4.256 / 43.501) / (7.295 / 50.477)
=0.09783683 / 0.14452127
=0.677

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)
=(1.85 / 50.477) / (1.758 / 43.501)
=0.18846207 / 0.2070757
=0.9101

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 - (20.183 + 2.213) / 22.728) / (1 - (19.015 + 1.99) / 21.409)
=0.01460753 / 0.01887057
=0.7741

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
=43.501 / 50.477
=0.8618

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))
=(0.239 / (0.239 + 1.99)) / (0.275 / (0.275 + 2.213))
=0.10722297 / 0.11053055
=0.9701

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)
=(4.859 / 43.501) / (4.793 / 50.477)
=0.11169858 / 0.09495414
=1.1763

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 + 2.087) / 22.728) / ((0 + 2.62) / 21.409)
=0.09182506 / 0.12237844
=0.7503

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
=(2.431 - 0.004 - 2.467) / 22.728
=-0.0018

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 Company, Ltd. has a M-score of -3.00 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 Company, 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 Company, Ltd. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
DSRI 1.49710.67051.1050.72340.82961.55120.86561.00620.83920.677
GMI 1.17231.10741.07191.02770.98750.99860.93050.94260.94560.9101
AQI 0.80250.98080.92270.82020.79910.5430.5440.58490.62520.7741
SGI 1.07270.96931.03141.09251.11081.17111.06721.07270.99990.8618
DEPI 0.99310.98550.98191.13971.19651.16071.14221.05850.96730.9701
SGAI 0.85310.95920.90260.87970.86090.81550.9370.94531.04721.1763
LVGI 1.25060.71990.69260.96670.64870.98190.69160.87650.50140.7503
TATA 0.1221-0.1214-0.042-0.1135-0.14220.1029-0.01790.07190.0795-0.0018
M-score -1.43-3.23-2.43-3.19-3.13-1.47-2.72-2.21-2.29-3.00
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