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Caldwell Partners International Inc (TSX:CWL)
Beneish M-Score
-2.91 (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 -2.91 suggests that the company is not a manipulator.

TSX:CWL' s 10-Year Beneish M-Score Range
Min: -3.56   Max: -1.53
Current: -2.91

-3.56
-1.53

During the past 13 years, the highest Beneish M-Score of Caldwell Partners International Inc was -1.53. The lowest was -3.56. And the median was -2.62.


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 * 0.861+0.528 * 0.9427+0.404 * 1.4033+0.892 * 1.3338+0.115 * 1.2194
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.927+4.679 * -0.1576-0.327 * 1.1016
=-2.91

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

This Year (Aug14) TTM:Last Year (Aug13) TTM:
Accounts Receivable was C$8.14 Mil.
Revenue was 13.231 + 12.359 + 9.158 + 10.339 = C$45.09 Mil.
Gross Profit was 3.061 + 3.09 + 2.298 + 2.584 = C$11.03 Mil.
Total Current Assets was C$30.06 Mil.
Total Assets was C$36.22 Mil.
Property, Plant and Equipment(Net PPE) was C$1.61 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.43 Mil.
Selling, General & Admin. Expense(SGA) was C$9.85 Mil.
Total Current Liabilities was C$21.28 Mil.
Long-Term Debt was C$0.00 Mil.
Net Income was 0.892 + 0.639 + 0.043 + 0.393 = C$1.97 Mil.
Non Operating Income was 0.013 + 0.006 + 0.004 + 0.001 = C$0.02 Mil.
Cash Flow from Operations was 6.306 + 0.865 + -1.702 + 2.182 = C$7.65 Mil.
Accounts Receivable was C$7.09 Mil.
Revenue was 10.338 + 9.223 + 6.825 + 7.417 = C$33.80 Mil.
Gross Profit was 2.731 + 2.04 + 1.23 + 1.797 = C$7.80 Mil.
Total Current Assets was C$19.34 Mil.
Total Assets was C$22.73 Mil.
Property, Plant and Equipment(Net PPE) was C$1.36 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.47 Mil.
Selling, General & Admin. Expense(SGA) was C$7.97 Mil.
Total Current Liabilities was C$12.13 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)
=(8.141 / 45.087) / (7.089 / 33.803)
=0.18056202 / 0.20971511
=0.861

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)
=(3.09 / 33.803) / (3.061 / 45.087)
=0.23068958 / 0.24470468
=0.9427

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 - (30.058 + 1.61) / 36.215) / (1 - (19.339 + 1.361) / 22.734)
=0.12555571 / 0.08946952
=1.4033

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
=45.087 / 33.803
=1.3338

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 + 1.361)) / (0.431 / (0.431 + 1.61))
=0.25750136 / 0.21117099
=1.2194

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)
=(9.85 / 45.087) / (7.966 / 33.803)
=0.21846652 / 0.23565956
=0.927

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 + 21.284) / 36.215) / ((0 + 12.129) / 22.734)
=0.58771227 / 0.53351808
=1.1016

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
=(1.967 - 0.024 - 7.651) / 36.215
=-0.1576

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 -2.91 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

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
DSRI 0.64471.09131.1410.70371.0911.04790.9490.98061.12010.861
GMI 111112.9350.36640.95810.88691.07650.9426
AQI 0.79960.75771.32720.86040.24490.90361.08980.85710.95791.4033
SGI 1.21950.96181.14941.10730.93711.81041.17250.95521.03361.3338
DEPI 0.86940.97970.9850.8570.86540.6940.92451.14030.97621.2194
SGAI 0.98730.9911.03181.16180.31980.62140.88251.16681.07760.9271
LVGI 1.21310.63781.44251.68051.25321.89451.02360.86981.20181.1016
TATA -0.05-0.0523-0.0356-0.1237-0.0046-0.05730.00430.0569-0.1147-0.1576
M-score -3.01-2.66-2.40-3.563.54-2.62-2.33-2.36-2.93-2.91

Caldwell Partners International Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 1.30160.98061.10781.09930.83241.12010.79990.61211.09470.861
GMI 0.86920.88670.88280.90551.00811.07671.11491.0280.93770.9427
AQI 1.11230.85710.96120.84661.02840.95790.89910.73330.60891.4033
SGI 0.9220.95520.93720.97080.97281.03361.11791.20351.30551.3338
DEPI 0.81580.77520.78620.79820.77991.43451.45741.49571.70771.2194
SGAI 1.18271.1671.16671.10721.14171.07761.03490.99890.85870.927
LVGI 0.8530.86980.78370.97451.05551.20181.28231.18911.08491.1016
TATA 0.19910.2420.3420.20550.068-0.1147-0.2315-0.2419-0.1069-0.1576
M-score -1.37-1.54-0.90-1.60-2.39-2.88-3.67-3.88-2.73-2.91
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