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GuruFocus has detected 2 Warning Signs with Caldwell Partners International Inc $TSX:CWL.
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Caldwell Partners International Inc (TSX:CWL)
Beneish M-Score
-2.27 (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 -2.27 suggests that the company is not a manipulator.

TSX:CWL' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 10000000
Current: -2.27

-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 -2.60.


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 * 1.1054+0.528 * 1.0175+0.404 * 0.8099+0.892 * 1.0417+0.115 * 0.7572
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9226+4.679 * 0.0335-0.327 * 1.0023
=-2.27

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

This Year (Nov16) TTM:Last Year (Nov15) TTM:
Accounts Receivable was C$8.24 Mil.
Revenue was 13.704 + 15.776 + 13.827 + 15.135 = C$58.44 Mil.
Gross Profit was 3.483 + 4.329 + 3.231 + 3.442 = C$14.49 Mil.
Total Current Assets was C$25.05 Mil.
Total Assets was C$33.42 Mil.
Property, Plant and Equipment(Net PPE) was C$1.91 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.62 Mil.
Selling, General & Admin. Expense(SGA) was C$11.96 Mil.
Total Current Liabilities was C$19.40 Mil.
Long-Term Debt was C$0.00 Mil.
Net Income was 0.762 + -0.058 + 0.339 + 0.764 = C$1.81 Mil.
Non Operating Income was 0 + 0 + 0 + 0.403 = C$0.40 Mil.
Cash Flow from Operations was 1.691 + 2.648 + 2.512 + -6.567 = C$0.28 Mil.
Accounts Receivable was C$7.16 Mil.
Revenue was 14.01 + 15.404 + 14.814 + 11.874 = C$56.10 Mil.
Gross Profit was 3.142 + 3.971 + 4.012 + 3.023 = C$14.15 Mil.
Total Current Assets was C$24.41 Mil.
Total Assets was C$34.67 Mil.
Property, Plant and Equipment(Net PPE) was C$1.99 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.45 Mil.
Selling, General & Admin. Expense(SGA) was C$12.45 Mil.
Total Current Liabilities was C$20.08 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)
=(8.24 / 58.442) / (7.156 / 56.102)
=0.14099449 / 0.12755338
=1.1054

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)
=(14.148 / 56.102) / (14.485 / 58.442)
=0.25218352 / 0.24785257
=1.0175

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 - (25.052 + 1.905) / 33.416) / (1 - (24.41 + 1.985) / 34.669)
=0.19329064 / 0.23865701
=0.8099

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
=58.442 / 56.102
=1.0417

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))
=(0.454 / (0.454 + 1.985)) / (0.621 / (0.621 + 1.905))
=0.18614186 / 0.24584323
=0.7572

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)
=(11.964 / 58.442) / (12.449 / 56.102)
=0.20471579 / 0.2218994
=0.9226

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 + 19.403) / 33.416) / ((0 + 20.084) / 34.669)
=0.58064999 / 0.57930716
=1.0023

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
=(1.807 - 0.403 - 0.284) / 33.416
=0.0335

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 -2.27 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 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

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
DSRI 0.8611.07141.38920.83610.83210.84820.98580.79761.07071.1054
GMI 0.94270.94170.99150.9940.93510.98441.01581.08051.0871.0175
AQI 1.40332.17822.8272.99561.68741.25011.10651.13040.94350.8099
SGI 1.33381.28481.27761.24081.20941.1891.18961.1151.07741.0417
DEPI 1.21940.99221.19861.03170.94951.38750.88560.85750.86820.7572
SGAI 0.9270.99350.96051.0511.01570.98660.99080.95260.98390.9226
LVGI 1.10161.04441.09361.02750.98571.06281.10021.04281.03981.0023
TATA -0.1607-0.04780.0741-0.02430.0412-0.01210.03190.06630.07230.0335
M-score -2.92-1.95-0.79-1.74-2.02-2.39-2.17-2.18-2.01-2.27
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