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Jewett-Cameron Trading Co Ltd (NAS:JCTCF)
Beneish M-Score
-2.89 (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 -2.89 suggests that the company is not a manipulator.

JCTCF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.54   Max: -0.24
Current: -2.89

-3.54
-0.24

During the past 13 years, the highest Beneish M-Score of Jewett-Cameron Trading Co Ltd was -0.24. The lowest was -3.54. 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 * 0.7955+0.528 * 0.9847+0.404 * 0.6655+0.892 * 1.1391+0.115 * 1.3131
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9845+4.679 * -0.046-0.327 * 1.0901
=-2.89

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

This Year (Aug16) TTM:Last Year (Aug15) TTM:
Accounts Receivable was $3.34 Mil.
Revenue was 10.523 + 14.459 + 11.188 + 11.942 = $48.11 Mil.
Gross Profit was 2.144 + 3.177 + 2.036 + 2.38 = $9.74 Mil.
Total Current Assets was $16.77 Mil.
Total Assets was $19.87 Mil.
Property, Plant and Equipment(Net PPE) was $2.96 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General & Admin. Expense(SGA) was $5.85 Mil.
Total Current Liabilities was $2.31 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.552 + 0.909 + 0.132 + 0.532 = $2.13 Mil.
Non Operating Income was 0 + 0 + -0.11 + 0 = $-0.11 Mil.
Cash Flow from Operations was 0.46 + 1.435 + 1.299 + -0.045 = $3.15 Mil.
Accounts Receivable was $3.69 Mil.
Revenue was 11.483 + 13.289 + 9.483 + 7.983 = $42.24 Mil.
Gross Profit was 2.403 + 2.242 + 1.902 + 1.87 = $8.42 Mil.
Total Current Assets was $17.20 Mil.
Total Assets was $19.66 Mil.
Property, Plant and Equipment(Net PPE) was $2.23 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General & Admin. Expense(SGA) was $5.21 Mil.
Total Current Liabilities was $2.10 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)
=(3.342 / 48.112) / (3.688 / 42.238)
=0.06946292 / 0.08731474
=0.7955

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)
=(8.417 / 42.238) / (9.737 / 48.112)
=0.19927553 / 0.20238194
=0.9847

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 - (16.765 + 2.955) / 19.87) / (1 - (17.203 + 2.232) / 19.658)
=0.00754907 / 0.01134398
=0.6655

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
=48.112 / 42.238
=1.1391

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))
=(0.282 / (0.282 + 2.232)) / (0.276 / (0.276 + 2.955))
=0.11217184 / 0.08542247
=1.3131

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)
=(5.845 / 48.112) / (5.212 / 42.238)
=0.12148736 / 0.12339599
=0.9845

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 + 2.314) / 19.87) / ((0 + 2.1) / 19.658)
=0.11645697 / 0.10682674
=1.0901

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
=(2.125 - -0.11 - 3.149) / 19.87
=-0.046

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 -2.89 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

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
DSRI 1.15250.85021.3791.22311.09471.51331.45430.66030.72550.7955
GMI 0.96611.00791.01721.01971.04180.99311.02711.07360.9610.9847
AQI 0.86120.9670.93980.90880.84850.75210.67780.7060.61380.6655
SGI 0.8860.85910.88170.9670.9140.99761.09171.13871.22621.1391
DEPI 0.95630.89680.91960.93210.97731.01870.99521.01910.95661.3131
SGAI 1.13491.19161.15151.09351.16031.04140.97190.96070.91190.9845
LVGI 1.30790.57181.35741.07960.83921.4691.40160.87171.4181.0901
TATA 0.07730.07480.12610.1820.0473-0.0537-0.0914-0.3023-0.1494-0.046
M-score -2.28-2.31-1.81-1.53-2.27-2.52-2.65-4.11-3.53-2.89
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