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Caldwell Partners International Inc (TSX:CWL)
Beneish M-Score
-2.17 (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 -2.17 signals that the company is a manipulator.

TSX:CWL' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 10000000
Current: -2.17

-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 -2.66.


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 * 0.9858+0.528 * 1.0157+0.404 * 1.1065+0.892 * 1.1896+0.115 * 0.8868
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9908+4.679 * 0.0319-0.327 * 1.1002
=-2.17

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

This Year (Feb16) TTM:Last Year (Feb15) TTM:
Accounts Receivable was C$9.59 Mil.
Revenue was 15.135 + 14.01 + 15.404 + 14.814 = C$59.36 Mil.
Gross Profit was 3.442 + 3.142 + 3.972 + 4.012 = C$14.57 Mil.
Total Current Assets was C$19.89 Mil.
Total Assets was C$29.50 Mil.
Property, Plant and Equipment(Net PPE) was C$1.98 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.61 Mil.
Selling, General & Admin. Expense(SGA) was C$12.67 Mil.
Total Current Liabilities was C$15.05 Mil.
Long-Term Debt was C$0.00 Mil.
Net Income was 0.764 + -0.165 + 0.65 + 0.768 = C$2.02 Mil.
Non Operating Income was 0.403 + 0.001 + 0.005 + 0.034 = C$0.44 Mil.
Cash Flow from Operations was -6.567 + -0.626 + 3.79 + 4.035 = C$0.63 Mil.
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.



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)
=(9.585 / 59.363) / (8.173 / 49.9)
=0.16146421 / 0.16378758
=0.9858

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)
=(3.142 / 49.9) / (3.442 / 59.363)
=0.24925852 / 0.24540539
=1.0157

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 - (19.888 + 1.983) / 29.499) / (1 - (21.352 + 1.759) / 30.159)
=0.25858504 / 0.23369475
=1.1065

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
=59.363 / 49.9
=1.1896

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))
=(0.46 / (0.46 + 1.759)) / (0.605 / (0.605 + 1.983))
=0.20730059 / 0.23377125
=0.8868

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)
=(12.673 / 59.363) / (10.752 / 49.9)
=0.21348315 / 0.21547094
=0.9908

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 + 15.053) / 29.499) / ((0 + 13.988) / 30.159)
=0.51028848 / 0.46380848
=1.1002

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
=(2.017 - 0.443 - 0.632) / 29.499
=0.0319

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 -2.17 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

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
DSRI 1.09131.1410.70371.0911.13730.87430.98061.12010.8610.846
GMI 11112.9350.33751.03990.88691.07650.94260.9351
AQI 0.75771.32720.86040.24490.90360.94840.98490.95791.40331.6872
SGI 0.96181.14941.10730.93711.66791.27260.95521.03361.33381.2094
DEPI 0.97970.9850.8570.86540.6940.89361.17960.97621.21940.9495
SGAI 0.9911.03181.16180.31980.67450.92051.03061.07760.92711.0158
LVGI 0.63781.44251.68051.25321.89451.04410.85271.20181.10160.9857
TATA -0.0523-0.0356-0.1237-0.0046-0.0573-0.0040.0569-0.1147-0.16070.0412
M-score -2.66-2.40-3.563.54-2.69-2.38-2.27-2.93-2.92-2.00

Caldwell Partners International Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
DSRI 0.79990.61211.09470.8611.07141.38920.83610.8460.84820.9858
GMI 1.11491.0280.93770.94270.94170.99150.9940.9350.98431.0157
AQI 0.89910.73330.60891.40332.17822.8272.99561.68721.25011.1065
SGI 1.11791.20351.30551.33381.28481.27761.24081.20941.1891.1896
DEPI 0.98310.99771.1451.21940.99221.19861.03170.95091.09460.8868
SGAI 1.03490.99890.85870.9270.99350.96051.05111.01570.98660.9908
LVGI 1.28231.18911.08491.10161.04441.09361.02750.98571.06281.1002
TATA -0.2296-0.2419-0.1069-0.1607-0.04780.0741-0.02430.0412-0.0120.0319
M-score -3.71-3.94-2.80-2.92-1.95-0.79-1.74-2.00-2.42-2.17
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