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IBI Group Inc (TSX:IBG)
Beneish M-Score
-3.14 (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.

IBI Group Inc has a M-score of -3.14 suggests that the company is not a manipulator.

TSX:IBG' s Beneish M-Score Range Over the Past 10 Years
Min: -6.94   Max: -1.65
Current: -3.14

-6.94
-1.65

During the past 12 years, the highest Beneish M-Score of IBI Group Inc was -1.65. The lowest was -6.94. And the median was -2.33.


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 IBI Group 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 * 0.8412+0.528 * 1+0.404 * 0.9668+0.892 * 1.1189+0.115 * 0.8286
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9592+4.679 * -0.1285-0.327 * 0.9736
=-3.14

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was C$104.2 Mil.
Revenue was 88.645 + 84.913 + 83.819 + 80.879 = C$338.3 Mil.
Gross Profit was 88.645 + 84.913 + 83.819 + 80.879 = C$338.3 Mil.
Total Current Assets was C$210.0 Mil.
Total Assets was C$249.3 Mil.
Property, Plant and Equipment(Net PPE) was C$14.5 Mil.
Depreciation, Depletion and Amortization(DDA) was C$5.1 Mil.
Selling, General & Admin. Expense(SGA) was C$260.4 Mil.
Total Current Liabilities was C$105.0 Mil.
Long-Term Debt was C$155.6 Mil.
Net Income was -3.066 + 0.413 + 3.755 + 1.243 = C$2.3 Mil.
Non Operating Income was -0.441 + 5.191 + -2.109 + -0.409 = C$2.2 Mil.
Cash Flow from Operations was 5.807 + 14.246 + 11.626 + 0.481 = C$32.2 Mil.
Accounts Receivable was C$110.7 Mil.
Revenue was 77.481 + 75.03 + 73.605 + 76.182 = C$302.3 Mil.
Gross Profit was 77.481 + 75.03 + 73.605 + 76.182 = C$302.3 Mil.
Total Current Assets was C$219.8 Mil.
Total Assets was C$260.0 Mil.
Property, Plant and Equipment(Net PPE) was C$13.4 Mil.
Depreciation, Depletion and Amortization(DDA) was C$3.7 Mil.
Selling, General & Admin. Expense(SGA) was C$242.6 Mil.
Total Current Liabilities was C$176.4 Mil.
Long-Term Debt was C$102.6 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)
=(104.22 / 338.256) / (110.73 / 302.298)
=0.30810983 / 0.36629419
=0.8412

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)
=(302.298 / 302.298) / (338.256 / 338.256)
=1 / 1
=1

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 - (210.027 + 14.498) / 249.346) / (1 - (219.782 + 13.411) / 259.958)
=0.09954441 / 0.10295894
=0.9668

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
=338.256 / 302.298
=1.1189

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))
=(3.68 / (3.68 + 13.411)) / (5.09 / (5.09 + 14.498))
=0.215318 / 0.25985297
=0.8286

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)
=(260.381 / 338.256) / (242.609 / 302.298)
=0.76977496 / 0.80254914
=0.9592

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)
=((155.593 + 104.98) / 249.346) / ((102.647 + 176.389) / 259.958)
=1.04502579 / 1.07338878
=0.9736

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
=(2.345 - 2.232 - 32.16) / 249.346
=-0.1285

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.

IBI Group Inc has a M-score of -3.14 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.

IBI Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.91951.06831.27731.01131.01290.88891.03790.86450.98070.9575
GMI 0.8781111111111
AQI 0.95120.80911.05320.92520.99310.9590.96240.18841.3660.8494
SGI 1.54491.18441.37841.10351.06111.14431.01630.85271.03581.0966
DEPI 1.21861.32550.8040.85150.98291.05060.93441.10722.71980.8799
SGAI 1.14070.99910.84431.03191.0171.00341.07451.16490.87490.9666
LVGI 0.96490.86451.67171.08641.1171.01870.97011.91271.00580.9245
TATA 0.04230.01430.03520.0207-0.02290.035-0.008-0.7364-0.1742-0.0852
M-score -1.94-2.18-1.92-2.36-2.57-2.31-2.49-6.82-2.92-2.88

IBI Group Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.89530.92150.94320.80770.9470.95880.82320.99610.95750.8412
GMI 1111111111
AQI 0.18840.19610.27590.20541.3661.30171.35411.46940.84940.9668
SGI 0.82330.79570.76841.04951.07271.13261.19761.0741.09661.1189
DEPI 0.58560.56170.52570.58825.14185.365.73675.2070.88020.8286
SGAI 1.14161.13431.11820.87290.89280.88940.89020.97190.96660.9592
LVGI 1.91271.80961.58051.41691.00580.98430.97250.97530.92450.9736
TATA -0.7497-0.7575-0.5398-0.48-0.1704-0.1705-0.1507-0.0845-0.1006-0.1285
M-score -6.94-6.94-5.82-5.34-2.62-2.55-2.46-2.13-2.95-3.14
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