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Caldwell Partners International Inc (TSX:CWL)
Beneish M-Score
-1.89 (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.

Caldwell Partners International Inc has a M-score of -1.89 signals that the company is a manipulator.

TSX:CWL' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 130.54
Current: -1.89

-10000000
130.54

During the past 13 years, the highest Beneish M-Score of Caldwell Partners International Inc was 130.54. The lowest was -10000000.00. And the median was -2.76.


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 * 1.0714+0.528 * 0.9417+0.404 * 2.1782+0.892 * 1.2848+0.115 * 1.1816
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9935+4.679 * -0.0383-0.327 * 1.0444
=-1.89

* 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 C$7.10 Mil.
Revenue was 12.436 + 13.231 + 12.359 + 9.158 = C$47.18 Mil.
Gross Profit was 3.264 + 3.061 + 3.09 + 2.298 = C$11.71 Mil.
Total Current Assets was C$26.08 Mil.
Total Assets was C$34.23 Mil.
Property, Plant and Equipment(Net PPE) was C$1.61 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.45 Mil.
Selling, General & Admin. Expense(SGA) was C$10.61 Mil.
Total Current Liabilities was C$18.66 Mil.
Long-Term Debt was C$0.00 Mil.
Net Income was 0.277 + 0.892 + 0.639 + 0.043 = C$1.85 Mil.
Non Operating Income was 0.013 + 0.013 + 0.006 + 0.004 = C$0.04 Mil.
Cash Flow from Operations was -2.386 + 6.306 + 0.865 + -1.659 = C$3.13 Mil.
Accounts Receivable was C$5.16 Mil.
Revenue was 10.339 + 10.338 + 9.223 + 6.825 = C$36.73 Mil.
Gross Profit was 2.584 + 2.731 + 2.04 + 1.23 = C$8.59 Mil.
Total Current Assets was C$19.26 Mil.
Total Assets was C$22.57 Mil.
Property, Plant and Equipment(Net PPE) was C$1.34 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.46 Mil.
Selling, General & Admin. Expense(SGA) was C$8.31 Mil.
Total Current Liabilities was C$11.78 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)
=(7.096 / 47.184) / (5.155 / 36.725)
=0.15038996 / 0.1403676
=1.0714

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)
=(3.061 / 36.725) / (3.264 / 47.184)
=0.23376447 / 0.24824093
=0.9417

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 - (26.077 + 1.614) / 34.225) / (1 - (19.255 + 1.335) / 22.568)
=0.19091308 / 0.08764622
=2.1782

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
=47.184 / 36.725
=1.2848

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))
=(0.46 / (0.46 + 1.335)) / (0.447 / (0.447 + 1.614))
=0.25626741 / 0.21688501
=1.1816

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)
=(10.612 / 47.184) / (8.314 / 36.725)
=0.22490675 / 0.2263853
=0.9935

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 + 18.656) / 34.225) / ((0 + 11.779) / 22.568)
=0.54509861 / 0.52193371
=1.0444

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
=(1.851 - 0.036 - 3.126) / 34.225
=-0.0383

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 -1.89 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

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
DSRI 0.64471.09131.1410.70371.0911.13730.87430.98061.12010.861
GMI 111112.9350.33751.03990.88691.07650.9426
AQI 0.79960.75771.32720.86040.24490.90360.94840.98490.95791.4033
SGI 1.21950.96181.14941.10730.93711.66791.27260.95521.03361.3338
DEPI 0.86940.97970.9850.8570.86540.6940.89361.17960.97621.2194
SGAI 0.98730.9911.03181.16180.31980.67450.92051.03061.07760.9271
LVGI 1.21310.63781.44251.68051.25321.89451.04410.85271.20181.1016
TATA -0.05-0.0523-0.0356-0.1237-0.0046-0.0573-0.0040.0584-0.1147-0.1576
M-score -3.01-2.66-2.40-3.563.54-2.69-2.38-2.27-2.93-2.91

Caldwell Partners International Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DSRI 0.98061.10781.09930.83241.12010.79990.61211.09470.8611.0714
GMI 0.88670.88280.90551.00811.07671.11491.0280.93770.94270.9417
AQI 0.98490.96120.84661.02840.95790.89910.73330.60891.40332.1782
SGI 0.95520.93720.97080.97281.03361.11791.20351.30551.33381.2848
DEPI 1.17791.16781.20031.16560.97760.98310.99771.1451.21941.1816
SGAI 0.97390.99440.9651.0191.07761.03490.99890.85870.9270.9935
LVGI 0.85270.78370.97451.05551.20181.28231.18911.08491.10161.0444
TATA 0.05840.1444-0.0206-0.1302-0.1148-0.2296-0.2419-0.1069-0.1576-0.0383
M-score -2.26-1.75-2.59-3.25-2.94-3.71-3.94-2.80-2.91-1.89
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