Switch to:
Caldwell Partners International Inc (TSX:CWL)
Beneish M-Score
-1.73 (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 -1.73 signals that the company is a manipulator.

TSX:CWL' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 10000000
Current: -1.73

-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 -2.71.


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 * 0.8361+0.528 * 0.994+0.404 * 2.9956+0.892 * 1.2408+0.115 * 1.0301
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0511+4.679 * -0.021-0.327 * 1.0275
=-1.73

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

This Year (May15) TTM:Last Year (May14) TTM:
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$0.49 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.
Net Income was 0.768 + 0.282 + 0.277 + 0.892 = C$2.22 Mil.
Non Operating Income was 0.034 + 0.011 + 0.013 + 0.013 = C$0.07 Mil.
Cash Flow from Operations was 4.035 + -5.085 + -2.386 + 6.306 = C$2.87 Mil.
Accounts Receivable was C$8.57 Mil.
Revenue was 12.359 + 9.158 + 10.339 + 10.338 = C$42.19 Mil.
Gross Profit was 3.09 + 2.298 + 2.584 + 2.731 = C$10.70 Mil.
Total Current Assets was C$24.82 Mil.
Total Assets was C$28.32 Mil.
Property, Plant and Equipment(Net PPE) was C$1.55 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.44 Mil.
Selling, General & Admin. Expense(SGA) was C$8.77 Mil.
Total Current Liabilities was C$14.18 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)
=(8.893 / 52.355) / (8.572 / 42.194)
=0.16985961 / 0.20315685
=0.8361

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)
=(3.023 / 42.194) / (4.012 / 52.355)
=0.25366166 / 0.25518098
=0.994

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 - (25.48 + 1.79) / 34.353) / (1 - (24.815 + 1.553) / 28.317)
=0.20618287 / 0.06882791
=2.9956

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
=52.355 / 42.194
=1.2408

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))
=(0.437 / (0.437 + 1.553)) / (0.485 / (0.485 + 1.79))
=0.21959799 / 0.21318681
=1.0301

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)
=(11.431 / 52.355) / (8.765 / 42.194)
=0.21833636 / 0.20773096
=1.0511

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 + 17.681) / 34.353) / ((0 + 14.184) / 28.317)
=0.51468576 / 0.50090052
=1.0275

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
=(2.219 - 0.071 - 2.87) / 34.353
=-0.021

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 -1.73 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

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
DSRI 1.09930.83241.12010.79990.61211.09470.8611.07141.38920.8361
GMI 0.90551.00811.07671.11491.0280.93770.94270.94170.99150.994
AQI 0.84661.02840.95790.89910.73330.60891.40332.17822.8272.9956
SGI 0.97080.97281.03361.11791.20351.30551.33381.28481.27761.2408
DEPI 1.20031.16560.97760.98310.99771.1451.21941.18161.19661.0301
SGAI 0.9651.0191.07761.03490.99890.85870.9270.99350.96051.0511
LVGI 0.97451.05551.20181.28231.18911.08491.10161.04441.09361.0275
TATA -0.0206-0.1302-0.1148-0.2296-0.2419-0.1069-0.1576-0.03830.0778-0.021
M-score -2.59-3.25-2.94-3.71-3.94-2.80-2.91-1.89-0.78-1.73
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK