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Caldwell Partners International Inc (TSX:CWL)
Beneish M-Score
-2.18 (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.

Caldwell Partners International Inc has a M-score of -2.18 signals that the company is a manipulator.

TSX:CWL' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 10000000
Current: -2.18

-10000000
10000000

During the past 13 years, the highest Beneish M-Score of Caldwell Partners International Inc was 10000000.00. The lowest was -10000000.00. And the median was -2.64.


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 Caldwell Partners International Inc 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 * 0.7976+0.528 * 1.0805+0.404 * 1.1304+0.892 * 1.115+0.115 * 0.8575
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9526+4.679 * 0.0663-0.327 * 1.0428
=-2.18

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

This Year (May16) TTM:Last Year (May15) TTM:
Accounts Receivable was C$7.91 Mil.
Revenue was 13.827 + 15.135 + 14.01 + 15.404 = C$58.38 Mil.
Gross Profit was 3.231 + 3.442 + 3.142 + 3.972 = C$13.79 Mil.
Total Current Assets was C$22.03 Mil.
Total Assets was C$31.20 Mil.
Property, Plant and Equipment(Net PPE) was C$1.91 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.63 Mil.
Selling, General & Admin. Expense(SGA) was C$12.14 Mil.
Total Current Liabilities was C$16.75 Mil.
Long-Term Debt was C$0.00 Mil.
Net Income was 0.339 + 0.764 + -0.165 + 0.65 = C$1.59 Mil.
Non Operating Income was 0 + 0.403 + 0.001 + 0.005 = C$0.41 Mil.
Cash Flow from Operations was 2.512 + -6.567 + -0.626 + 3.79 = C$-0.89 Mil.
Accounts Receivable was C$8.89 Mil.
Revenue was 14.814 + 11.874 + 12.436 + 13.231 = C$52.36 Mil.
Gross Profit was 4.012 + 3.023 + 3.264 + 3.061 = C$13.36 Mil.
Total Current Assets was C$25.48 Mil.
Total Assets was C$34.35 Mil.
Property, Plant and Equipment(Net PPE) was C$1.79 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.48 Mil.
Selling, General & Admin. Expense(SGA) was C$11.43 Mil.
Total Current Liabilities was C$17.68 Mil.
Long-Term Debt was C$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)
=(7.909 / 58.376) / (8.893 / 52.355)
=0.13548376 / 0.16985961
=0.7976

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)
=(13.36 / 52.355) / (13.787 / 58.376)
=0.25518098 / 0.23617583
=1.0805

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 - (22.025 + 1.905) / 31.202) / (1 - (25.48 + 1.79) / 34.353)
=0.23306198 / 0.20618287
=1.1304

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
=58.376 / 52.355
=1.115

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))
=(0.484 / (0.484 + 1.79)) / (0.629 / (0.629 + 1.905))
=0.21284081 / 0.24822415
=0.8575

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)
=(12.14 / 58.376) / (11.43 / 52.355)
=0.20796218 / 0.21831726
=0.9526

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 + 16.746) / 31.202) / ((0 + 17.681) / 34.353)
=0.53669637 / 0.51468576
=1.0428

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
=(1.588 - 0.409 - -0.891) / 31.202
=0.0663

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.

Caldwell Partners International Inc has a M-score of -2.18 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.

Caldwell Partners International Inc Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
DSRI 1.09131.1410.70371.0911.04790.9490.98061.12010.8610.846
GMI 11114.73890.95810.88691.07650.94260.9351
AQI 0.75771.32720.86040.24490.90360.94840.98490.95791.40331.6872
SGI 0.96181.14941.10730.93711.81041.17250.95521.03361.33381.2094
DEPI 0.97970.9850.8570.86540.6940.89451.17850.97621.21940.9495
SGAI 0.9911.03181.16181.15180.17260.88251.16681.07760.92711.0158
LVGI 0.63781.44251.68051.25321.89451.04410.85271.20181.10160.9857
TATA -0.0523-0.0356-0.1237-0.0046-0.05730.00440.0569-0.1147-0.15760.0412
M-score -2.66-2.40-3.56-2.90-0.23-2.40-2.30-2.93-2.91-2.00

Caldwell Partners International Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
DSRI 0.61211.09470.8611.07141.38920.83610.8460.84820.98580.7976
GMI 1.0280.93770.94270.94170.99150.9940.9350.98431.01571.0805
AQI 0.73330.60891.40332.17822.8272.99561.68721.25011.10651.1304
SGI 1.20351.30551.33381.28481.27761.24081.20941.1891.18961.115
DEPI 0.99771.1451.21940.99221.19861.03170.94951.09320.88560.8575
SGAI 0.99890.85870.9270.99350.96051.0511.01570.98650.99070.9526
LVGI 1.18911.08491.10161.04441.09361.02750.98571.06281.10021.0428
TATA -0.2419-0.1069-0.1607-0.04780.0741-0.02430.0412-0.0120.0320.0663
M-score -3.94-2.80-2.92-1.95-0.79-1.74-2.00-2.42-2.17-2.18
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