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Charles River Laboratories International (Charles River Laboratories International) Beneish M-Score

: -2.60 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Charles River Laboratories International's Beneish M-Score or its related term are showing as below:

CRL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.75   Med: -2.6   Max: -2.42
Current: -2.6

During the past 13 years, the highest Beneish M-Score of Charles River Laboratories International was -2.42. The lowest was -2.75. And the median was -2.60.


Charles River Laboratories International Beneish M-Score Historical Data

The historical data trend for Charles River Laboratories International's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Charles River Laboratories International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.62 -2.51 -2.63 -2.42 -2.60

Charles River Laboratories International Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.42 -2.47 -2.56 -2.62 -2.60

Competitive Comparison

For the Diagnostics & Research subindustry, Charles River Laboratories International's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Charles River Laboratories International Beneish M-Score Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Charles River Laboratories International's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Charles River Laboratories International's Beneish M-Score falls into.



Charles River Laboratories International Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Charles River Laboratories International 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 * 0.9987+0.528 * 1.011+0.404 * 0.9808+0.892 * 1.0386+0.115 * 1.0509
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0827+4.679 * -0.037195-0.327 * 0.9128
=-2.60

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $780 Mil.
Revenue was 1013.476 + 1026.623 + 1059.937 + 1029.373 = $4,129 Mil.
Gross Profit was 364.085 + 361.84 + 398.977 + 377.654 = $1,503 Mil.
Total Current Assets was $1,609 Mil.
Total Assets was $8,195 Mil.
Property, Plant and Equipment(Net PPE) was $2,034 Mil.
Depreciation, Depletion and Amortization(DDA) was $314 Mil.
Selling, General, & Admin. Expense(SGA) was $748 Mil.
Total Current Liabilities was $1,055 Mil.
Long-Term Debt & Capital Lease Obligation was $3,066 Mil.
Net Income was 187.084 + 87.389 + 97.02 + 103.131 = $475 Mil.
Non Operating Income was 107.737 + -6.26 + -2.663 + -3.277 = $96 Mil.
Cash Flow from Operations was 220.943 + 205.45 + 148.122 + 109.383 = $684 Mil.
Total Receivables was $752 Mil.
Revenue was 1099.843 + 989.157 + 973.131 + 913.929 = $3,976 Mil.
Gross Profit was 398.884 + 370.223 + 356.726 + 336.818 = $1,463 Mil.
Total Current Assets was $1,439 Mil.
Total Assets was $7,603 Mil.
Property, Plant and Equipment(Net PPE) was $1,857 Mil.
Depreciation, Depletion and Amortization(DDA) was $304 Mil.
Selling, General, & Admin. Expense(SGA) was $665 Mil.
Total Current Liabilities was $1,092 Mil.
Long-Term Debt & Capital Lease Obligation was $3,097 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(780.375 / 4129.409) / (752.39 / 3976.06)
=0.18898 / 0.18923
=0.9987

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)
=(1462.651 / 3976.06) / (1502.556 / 4129.409)
=0.367864 / 0.363867
=1.011

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1608.662 + 2033.77) / 8195.001) / (1 - (1439.032 + 1857.417) / 7602.77)
=0.55553 / 0.566415
=0.9808

4. SGI = Sales Growth Index

Ratio of Revenue 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
=4129.409 / 3976.06
=1.0386

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(303.87 / (303.87 + 1857.417)) / (314.124 / (314.124 + 2033.77))
=0.140597 / 0.13379
=1.0509

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(747.855 / 4129.409) / (665.098 / 3976.06)
=0.181105 / 0.167276
=1.0827

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((3066.381 + 1055.082) / 8195.001) / ((3097.276 + 1091.585) / 7602.77)
=0.502924 / 0.550965
=0.9128

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
=(474.624 - 95.537 - 683.898) / 8195.001
=-0.037195

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Charles River Laboratories International has a M-score of -2.60 suggests that the company is unlikely to be a manipulator.


Charles River Laboratories International Beneish M-Score Related Terms

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Charles River Laboratories International (Charles River Laboratories International) Business Description

Traded in Other Exchanges
Address
251 Ballardvale Street, Wilmington, MA, USA, 01887
Charles River Laboratories was founded in 1947 and is a leading provider of drug discovery and development services. The company's research model & services segment is the leading provider of animal models for laboratory testing, which breeds and delivers animal research models with specific genetic characteristics for preclinical studies around the world. The discovery & safety assessment segment includes services required to take a drug through the early development process, including discovery services. The manufacturing support segment includes microbial solutions, which provides in vitro (non-animal) testing products, biologics testing services, and avian vaccine services.
Executives
Victoria L Creamer officer: EVP & Chief People Officer 164 PINE HILL ROAD, NEW FAIRFIELD CT 06812
Joseph W Laplume officer: EVP, Corp Strategy & Develop 251 BALLARDVALE STREET, WILMINGTON MA 01887
Birgit Girshick officer: Corporate Executive VP 251 BALLARDVALE STREET, WILMINGTON MA 01887
James C Foster director, officer: President and CEO 251 BALLARDVALE ST, WILMINGTON MA 01887
Richard F Wallman director HONEYWELL, 101 COLUMBIA ROAD, MORRISTOWN NJ 07962
William D Barbo officer: Corporate Executive VP & CCO 251 BALLARDVALE STREET, WILMINGTON MA 01887
Michael Gunnar Knell officer: CSVP&Chief Accounting Officer BRUKER CORPORATION, 40 MANNING ROAD, BILLERICA MA 01821
George Massaro director
Shannon M Parisotto officer: CEVP, Disc & Safety Assessment 251 BALLARDVALE ST, WILMINGTON MA 01887
Flavia Pease officer: Corporate Executive VP 251 BALLARDVALE STREET, WILMINGTON MA 01887
David Ross Smith officer: Corporate Executive VP & CFO 251 BALLARDVALE STREET, WILMINGTON MA 01887
Deborah Turner Kochevar director 251 BALLARDVALE STREET, WILMINGTON MA 01887
Milne George M Jr director
Stephen D Chubb director C/O MATRITECH INC, 330 NEVADA STREET, NEWTON MA 02460
George Llado director 251 BALLARDVALE STREET, WILMINGTON MA 01887