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Caldwell Partners International, Inc. (TSX:CWL)
Beneish M-Score
-3.72 (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 -3.94 suggests that the company is not a manipulator.

TSX:CWL' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 129.93
Current: -3.72

-10000000
129.93

During the past 13 years, the highest Beneish M-Score of Caldwell Partners International, Inc. was 129.93. The lowest was -10000000.00. And the median was -2.72.


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 * 0.6076+0.528 * 1.028+0.404 * 0.7333+0.892 * 1.2035+0.115 * 0.9977
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9989+4.679 * -0.2409-0.327 * 1.1891
=-3.94

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

This Year (Feb14) TTM:Last Year (Feb13) TTM:
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.
Net Income was 0.043 + 0.393 + 0.793 + -0.366 = C$0.86 Mil.
Non Operating Income was 0.004 + 0.001 + -0.024 + 0.002 = C$-0.02 Mil.
Cash Flow from Operations was -1.702 + 2.182 + 3.537 + 2.629 = C$6.65 Mil.
Accounts Receivable was C$6.30 Mil.
Revenue was 6.825 + 7.417 + 8.856 + 9.357 = C$32.46 Mil.
Gross Profit was 1.23 + 1.797 + 2.621 + 2.598 = C$8.25 Mil.
Total Current Assets was C$13.07 Mil.
Total Assets was C$16.35 Mil.
Property, Plant and Equipment(Net PPE) was C$1.43 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.47 Mil.
Selling, General & Admin. Expense(SGA) was C$7.29 Mil.
Total Current Liabilities was C$5.83 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)
=(4.605 / 39.058) / (6.298 / 32.455)
=0.11790158 / 0.1940533
=0.6076

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)
=(2.584 / 32.455) / (2.298 / 39.058)
=0.25407487 / 0.24714527
=1.028

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 - (20.603 + 1.358) / 23.94) / (1 - (13.074 + 1.432) / 16.349)
=0.082665 / 0.11272861
=0.7333

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
=39.058 / 32.455
=1.2035

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))
=(0.472 / (0.472 + 1.432)) / (0.449 / (0.449 + 1.358))
=0.24789916 / 0.24847814
=0.9977

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)
=(8.762 / 39.058) / (7.289 / 32.455)
=0.22433304 / 0.22458789
=0.9989

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 + 10.153) / 23.94) / ((0 + 5.831) / 16.349)
=0.42410192 / 0.3566579
=1.1891

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
=(0.863 - -0.017 - 6.646) / 23.94
=-0.2409

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 -3.94 suggests that the company will not 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

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
DSRI 1.21650.88190.87011.22880.81290.88741.04580.87210.97651.1112
GMI 1111112.9350.33751.03990.88691.0765
AQI 0.92440.79960.75771.32720.86040.24490.90360.94840.98490.9579
SGI 0.82131.21950.96181.14941.10730.93711.66791.27260.95521.0336
DEPI 1.82090.86940.97970.9850.8570.86540.6940.89361.17960.9762
SGAI 1.06770.98730.9911.03181.16180.31980.67450.92051.03061.0776
LVGI 2.00491.21310.63781.44251.68051.25321.89451.04410.85271.2018
TATA -0.1039-0.05-0.0523-0.0356-0.1237-0.0046-0.0573-0.0040.0584-0.1136
M-score -3.20-2.79-2.86-2.32-3.463.35-2.77-2.39-2.27-2.94

Caldwell Partners International, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
DSRI 0.97760.88741.27560.97651.10131.0910.83341.11120.79310.6076
GMI 0.93510.8980.88770.88670.88280.90551.00811.07671.11491.028
AQI 0.89151.20631.11230.98490.96120.84661.02840.95790.89910.7333
SGI 1.18711.01030.94160.95520.93720.97080.97281.03361.11791.2035
DEPI 0.85880.83490.81411.17791.16781.20031.16560.97760.98310.9977
SGAI 1.02931.16331.21760.97390.99440.9651.0191.07761.03490.9989
LVGI 1.09960.80790.8530.85270.78370.97451.05551.20181.28231.1891
TATA -0.04620.1160.18950.05840.1444-0.0206-0.1302-0.1136-0.2304-0.2409
M-score -2.68-1.99-1.42-2.26-1.75-2.59-3.25-2.94-3.72-3.94
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