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IBI Group Inc (TSX:IBG)
Beneish M-Score
-2.84 (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 -2.84 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: -2.84

-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 -2.34.


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 * 0.8881+0.528 * 1+0.404 * 1.1018+0.892 * 1.133+0.115 * 0.8069
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9543+4.679 * -0.0899-0.327 * 0.9444
=-2.84

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was C$102.5 Mil.
Revenue was 90.443 + 88.645 + 84.913 + 83.819 = C$347.8 Mil.
Gross Profit was 90.443 + 88.645 + 84.913 + 83.819 = C$347.8 Mil.
Total Current Assets was C$213.3 Mil.
Total Assets was C$257.9 Mil.
Property, Plant and Equipment(Net PPE) was C$14.5 Mil.
Depreciation, Depletion and Amortization(DDA) was C$5.2 Mil.
Selling, General & Admin. Expense(SGA) was C$266.1 Mil.
Total Current Liabilities was C$94.7 Mil.
Long-Term Debt was C$170.9 Mil.
Net Income was 3.567 + -3.066 + 0.413 + 3.755 = C$4.7 Mil.
Non Operating Income was -0.367 + -0.441 + 5.191 + -2.109 = C$2.3 Mil.
Cash Flow from Operations was -6.099 + 5.807 + 14.246 + 11.626 = C$25.6 Mil.
Accounts Receivable was C$101.8 Mil.
Revenue was 80.879 + 77.481 + 75.03 + 73.605 = C$307.0 Mil.
Gross Profit was 80.879 + 77.481 + 75.03 + 73.605 = C$307.0 Mil.
Total Current Assets was C$208.8 Mil.
Total Assets was C$249.2 Mil.
Property, Plant and Equipment(Net PPE) was C$14.1 Mil.
Depreciation, Depletion and Amortization(DDA) was C$3.8 Mil.
Selling, General & Admin. Expense(SGA) was C$246.1 Mil.
Total Current Liabilities was C$167.7 Mil.
Long-Term Debt was C$104.1 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)
=(102.454 / 347.82) / (101.827 / 306.995)
=0.2945604 / 0.33168944
=0.8881

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)
=(306.995 / 306.995) / (347.82 / 347.82)
=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 - (213.286 + 14.543) / 257.857) / (1 - (208.755 + 14.092) / 249.185)
=0.11645214 / 0.10569657
=1.1018

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
=347.82 / 306.995
=1.133

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))
=(3.779 / (3.779 + 14.092)) / (5.165 / (5.165 + 14.543))
=0.21145991 / 0.26207631
=0.8069

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)
=(266.095 / 347.82) / (246.107 / 306.995)
=0.76503651 / 0.80166452
=0.9543

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)
=((170.948 + 94.72) / 257.857) / ((104.124 + 167.726) / 249.185)
=1.03029198 / 1.09095652
=0.9444

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
=(4.669 - 2.274 - 25.58) / 257.857
=-0.0899

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 -2.84 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 0.91951.15181.23570.96961.01660.88561.03790.96720.87660.9575
GMI 0.8781111111111
AQI 0.95120.80911.05320.92520.99310.9590.96240.18841.3660.8494
SGI 1.54491.09851.42481.1511.05721.14851.01630.76211.15891.0966
DEPI 1.21861.32550.8040.85430.97831.05210.93441.10722.71980.8799
SGAI 1.14070.98230.89570.98931.02060.99991.07451.15730.88060.9666
LVGI 0.96490.86451.67171.08641.1171.01870.97011.91271.00580.9245
TATA 0.04540.01430.03520.02760.00950.0398-0.008-0.7505-0.165-0.0852
M-score -1.93-2.18-1.92-2.32-2.42-2.28-2.49-6.88-2.86-2.88

IBI Group Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.92150.94320.80770.9470.95880.82320.99610.95750.84120.8881
GMI 1111111111
AQI 0.19610.27590.20541.3661.30171.35411.46940.84940.96681.1018
SGI 0.79570.76841.04951.07271.13261.19761.0741.09661.11891.133
DEPI 0.56170.52570.58825.14185.365.73675.2070.88020.82860.8069
SGAI 1.13431.11820.87290.89280.88940.89020.97190.96660.95920.9543
LVGI 1.80961.58051.41691.00580.98430.97250.97530.92450.97360.9444
TATA -0.7575-0.5398-0.48-0.1704-0.1705-0.1507-0.0845-0.1006-0.1285-0.0899
M-score -6.94-5.82-5.34-2.62-2.55-2.46-2.13-2.95-3.14-2.84
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