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Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
Beneish M-Score
-1.81 (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 -1.81 signals that the company is a manipulator.

JCTCF' s 10-Year Beneish M-Score Range
Min: -3.78   Max: 0.99
Current: -1.81

-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 * 1.379+0.528 * 1.0172+0.404 * 0.9398+0.892 * 0.8817+0.115 * 0.9196
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1515+4.679 * 0.1261-0.327 * 1.3574
=-1.81

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

This Year (Nov14) TTM:Last Year (Nov13) TTM:
Accounts Receivable was $2.72 Mil.
Revenue was 7.983 + 9.265 + 15.336 + 9.733 = $42.32 Mil.
Gross Profit was 1.87 + 1.82 + 2.951 + 1.758 = $8.40 Mil.
Total Current Assets was $16.36 Mil.
Total Assets was $18.74 Mil.
Property, Plant and Equipment(Net PPE) was $2.10 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General & Admin. Expense(SGA) was $5.05 Mil.
Total Current Liabilities was $1.44 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.328 + 0.352 + 0.936 + 0.237 = $1.85 Mil.
Non Operating Income was 0 + -0.001 + 0 + 0 = $-0.00 Mil.
Cash Flow from Operations was -1.049 + 0.557 + 1.677 + -1.693 = $-0.51 Mil.
Accounts Receivable was $2.24 Mil.
Revenue was 8.006 + 10.71 + 15.052 + 14.228 = $48.00 Mil.
Gross Profit was 1.85 + 2.37 + 3.03 + 2.44 = $9.69 Mil.
Total Current Assets was $19.64 Mil.
Total Assets was $22.23 Mil.
Property, Plant and Equipment(Net PPE) was $2.25 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.27 Mil.
Selling, General & Admin. Expense(SGA) was $4.98 Mil.
Total Current Liabilities was $1.26 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)
=(2.721 / 42.317) / (2.238 / 47.996)
=0.0643004 / 0.04662889
=1.379

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)
=(1.82 / 47.996) / (1.87 / 42.317)
=0.20189182 / 0.19847815
=1.0172

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 - (16.361 + 2.098) / 18.737) / (1 - (19.635 + 2.247) / 22.233)
=0.01483695 / 0.01578734
=0.9398

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
=42.317 / 47.996
=0.8817

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))
=(0.269 / (0.269 + 2.247)) / (0.276 / (0.276 + 2.098))
=0.10691574 / 0.11625948
=0.9196

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)
=(5.052 / 42.317) / (4.976 / 47.996)
=0.11938464 / 0.10367531
=1.1515

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 + 1.438) / 18.737) / ((0 + 1.257) / 22.233)
=0.07674654 / 0.05653758
=1.3574

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
=(1.853 - -0.001 - -0.508) / 18.737
=0.1261

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 -1.81 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

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
DSRI 0.93961.04491.01950.91961.01781.08930.99440.72651.00820.8502
GMI 0.9280.83620.89380.94070.8380.96821.12951.02760.94261.0081
AQI 4.46890.77755.74230.93361.07520.80130.8970.82020.58490.967
SGI 1.0461.01980.92670.91210.6550.98681.01161.09251.07270.8591
DEPI 0.85121.15450.85170.92930.99651.20130.97171.13941.06240.8997
SGAI 1.0591.04071.01940.99221.350.9490.89590.87950.94551.1916
LVGI 0.78990.74760.89980.75440.38310.83682.01690.96670.87650.5718
TATA -0.17240.04490.0883-0.1472-0.1006-0.03190.0112-0.11350.07190.0748
M-score -1.90-2.29-0.24-3.31-3.16-2.57-2.71-3.19-2.21-2.31

Jewett-Cameron Trading Co Ltd Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DSRI 0.72650.84181.57550.87311.00820.83920.6771.15250.85021.379
GMI 1.02770.98750.99860.93050.94260.94560.91010.96611.00791.0172
AQI 0.82020.79910.5430.5440.58490.62520.77410.86120.9670.9398
SGI 1.09251.11081.17111.06721.07270.99990.86180.8860.85910.8817
DEPI 1.13971.19651.16071.14221.05850.96730.97010.95630.89680.9196
SGAI 0.87970.86090.81550.9370.94531.04721.17631.13491.19161.1515
LVGI 0.96670.64870.98190.69160.87650.50140.75031.30790.57181.3574
TATA -0.1135-0.14220.1029-0.01790.07190.0795-0.00180.07730.07480.1261
M-score -3.19-3.12-1.45-2.71-2.21-2.29-3.00-2.28-2.31-1.81
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