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Caldwell Partners International Inc (TSX:CWL)
Beneish M-Score
-0.78 (As of Today)

Warning Sign:

Beneish M-Score -0.78 higher than -2.22, which implies that it might have manipulated its financial results.

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 -0.78 signals that the company is a manipulator.

TSX:CWL' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 130.54
Current: -0.78

-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 -2.71.


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 * 1.3892+0.528 * 0.9915+0.404 * 2.827+0.892 * 1.2776+0.115 * 1.1966
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9605+4.679 * 0.0778-0.327 * 1.0936
=-0.78

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

This Year (Feb15) TTM:Last Year (Feb14) TTM:
Accounts Receivable was C$8.17 Mil.
Revenue was 11.874 + 12.436 + 13.231 + 12.359 = C$49.90 Mil.
Gross Profit was 3.023 + 3.264 + 3.061 + 3.09 = C$12.44 Mil.
Total Current Assets was C$21.35 Mil.
Total Assets was C$30.16 Mil.
Property, Plant and Equipment(Net PPE) was C$1.76 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.46 Mil.
Selling, General & Admin. Expense(SGA) was C$10.75 Mil.
Total Current Liabilities was C$13.99 Mil.
Long-Term Debt was C$0.00 Mil.
Net Income was 0.282 + 0.277 + 0.892 + 0.639 = C$2.09 Mil.
Non Operating Income was 0.011 + 0.013 + 0.013 + 0.006 = C$0.04 Mil.
Cash Flow from Operations was -5.085 + -2.386 + 6.306 + 0.865 = C$-0.30 Mil.
Accounts Receivable was C$4.61 Mil.
Revenue was 9.158 + 10.339 + 10.338 + 9.223 = C$39.06 Mil.
Gross Profit was 2.298 + 2.584 + 2.731 + 2.04 = C$9.65 Mil.
Total Current Assets was C$20.60 Mil.
Total Assets was C$23.94 Mil.
Property, Plant and Equipment(Net PPE) was C$1.36 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.45 Mil.
Selling, General & Admin. Expense(SGA) was C$8.76 Mil.
Total Current Liabilities was C$10.15 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)
=(8.173 / 49.9) / (4.605 / 39.058)
=0.16378758 / 0.11790158
=1.3892

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)
=(3.264 / 39.058) / (3.023 / 49.9)
=0.24714527 / 0.24925852
=0.9915

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 - (21.352 + 1.759) / 30.159) / (1 - (20.603 + 1.358) / 23.94)
=0.23369475 / 0.082665
=2.827

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
=49.9 / 39.058
=1.2776

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))
=(0.449 / (0.449 + 1.358)) / (0.461 / (0.461 + 1.759))
=0.24847814 / 0.20765766
=1.1966

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)
=(10.752 / 49.9) / (8.762 / 39.058)
=0.21547094 / 0.22433304
=0.9605

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 + 13.988) / 30.159) / ((0 + 10.153) / 23.94)
=0.46380848 / 0.42410192
=1.0936

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
=(2.09 - 0.043 - -0.3) / 30.159
=0.0778

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 -0.78 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

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
DSRI 1.10781.09930.83241.12010.79990.61211.09470.8611.07141.3892
GMI 0.88280.90551.00811.07671.11491.0280.93770.94270.94170.9915
AQI 0.96120.84661.02840.95790.89910.73330.60891.40332.17822.827
SGI 0.93720.97080.97281.03361.11791.20351.30551.33381.28481.2776
DEPI 1.16781.20031.16560.97760.98310.99771.1451.21941.18161.1966
SGAI 0.99440.9651.0191.07761.03490.99890.85870.9270.99350.9605
LVGI 0.78370.97451.05551.20181.28231.18911.08491.10161.04441.0936
TATA 0.1444-0.0206-0.1302-0.1148-0.2296-0.2419-0.1069-0.1576-0.03830.0778
M-score -1.75-2.59-3.25-2.94-3.71-3.94-2.80-2.91-1.89-0.78
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