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Caldwell Partners International Inc (TSX:CWL)
Beneish M-Score
-2.01 (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 -2.01 signals that the company is a manipulator.

TSX:CWL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.47   Max: -1.58
Current: -2.01

-3.47
-1.58

During the past 13 years, the highest Beneish M-Score of Caldwell Partners International Inc was -1.58. The lowest was -3.47. And the median was -2.50.


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 * 1.0707+0.528 * 1.087+0.404 * 0.9435+0.892 * 1.0774+0.115 * 0.8682
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9839+4.679 * 0.0723-0.327 * 1.0398
=-2.01

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Aug16) TTM:Last Year (Aug15) TTM:
Accounts Receivable was C$9.45 Mil.
Revenue was 15.776 + 13.827 + 15.135 + 14.01 = C$58.75 Mil.
Gross Profit was 4.329 + 3.231 + 3.442 + 3.142 = C$14.14 Mil.
Total Current Assets was C$25.93 Mil.
Total Assets was C$34.70 Mil.
Property, Plant and Equipment(Net PPE) was C$1.84 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.63 Mil.
Selling, General & Admin. Expense(SGA) was C$12.83 Mil.
Total Current Liabilities was C$20.90 Mil.
Long-Term Debt was C$0.00 Mil.
Net Income was -0.058 + 0.339 + 0.764 + -0.165 = C$0.88 Mil.
Non Operating Income was 0 + 0 + 0.403 + 0.001 = C$0.40 Mil.
Cash Flow from Operations was 2.648 + 2.512 + -6.567 + -0.626 = C$-2.03 Mil.
Accounts Receivable was C$8.19 Mil.
Revenue was 15.404 + 14.814 + 11.874 + 12.436 = C$54.53 Mil.
Gross Profit was 3.971 + 4.012 + 3.023 + 3.264 = C$14.27 Mil.
Total Current Assets was C$28.00 Mil.
Total Assets was C$37.83 Mil.
Property, Plant and Equipment(Net PPE) was C$1.82 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.52 Mil.
Selling, General & Admin. Expense(SGA) was C$12.10 Mil.
Total Current Liabilities was C$21.92 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)
=(9.451 / 58.748) / (8.193 / 54.528)
=0.16087356 / 0.15025308
=1.0707

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)
=(14.27 / 54.528) / (14.144 / 58.748)
=0.26170041 / 0.24075713
=1.087

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 - (25.925 + 1.838) / 34.699) / (1 - (27.998 + 1.818) / 37.831)
=0.19989049 / 0.21186329
=0.9435

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
=58.748 / 54.528
=1.0774

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))
=(0.52 / (0.52 + 1.818)) / (0.633 / (0.633 + 1.838))
=0.22241232 / 0.25617159
=0.8682

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)
=(12.827 / 58.748) / (12.1 / 54.528)
=0.21833935 / 0.22190434
=0.9839

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 + 20.901) / 34.699) / ((0 + 21.916) / 37.831)
=0.60235165 / 0.57931326
=1.0398

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
=(0.88 - 0.404 - -2.033) / 34.699
=0.0723

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 -2.01 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 local exchange's currency.

Caldwell Partners International Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
DSRI 1.1410.70371.0911.13730.87430.98061.12010.8610.83211.0707
GMI 1112.9350.33751.03990.88691.07650.94260.93511.087
AQI 1.32720.86040.24490.90360.94840.98490.95791.40331.68740.9435
SGI 1.14941.10730.93711.66791.27260.95521.03361.33381.20941.0774
DEPI 0.9850.8570.86540.6940.89361.17960.97621.21940.94950.8682
SGAI 1.03181.16180.31980.67450.92051.03061.07760.92711.01590.9838
LVGI 1.44251.68051.25321.89451.04410.85271.20181.10160.98571.0398
TATA -0.0356-0.1237-0.0046-0.0573-0.0040.0569-0.1147-0.16070.04110.0723
M-score -2.40-3.563.54-2.69-2.38-2.27-2.93-2.92-2.02-2.01

Caldwell Partners International Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
DSRI 1.09470.8611.07141.38920.83610.83210.84820.98580.79761.0707
GMI 0.93770.94270.94170.99150.9940.93510.98441.01581.08051.087
AQI 0.60891.40332.17822.8272.99561.68741.25011.10651.13040.9435
SGI 1.30551.33381.28481.27761.24081.20941.1891.18961.1151.0774
DEPI 1.1451.21940.99221.19861.03170.94951.09320.88560.85750.8682
SGAI 0.85870.9270.99350.96051.0511.01570.98660.99080.95260.9839
LVGI 1.08491.10161.04441.09361.02750.98571.06281.10021.04281.0398
TATA -0.1069-0.1607-0.04780.0741-0.02430.0412-0.01210.03190.06630.0723
M-score -2.80-2.92-1.95-0.79-1.74-2.02-2.42-2.17-2.18-2.01
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