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IBI Group Inc (TSX:IBG)
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.

IBI Group Inc has a M-score of -2.17 signals that the company is a manipulator.

TSX:IBG' s Beneish M-Score Range Over the Past 10 Years
Min: -6.94   Max: -1.6
Current: -2.17

-6.94
-1.6

During the past 11 years, the highest Beneish M-Score of IBI Group Inc was -1.60. The lowest was -6.94. And the median was -2.38.


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 * 0.9961+0.528 * 1+0.404 * 1.4694+0.892 * 1.074+0.115 * 5.207
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9719+4.679 * -0.0936-0.327 * 0.9753
=-2.17

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was C$109.7 Mil.
Revenue was 83.819 + 80.879 + 77.481 + 75.03 = C$317.2 Mil.
Gross Profit was 83.819 + 80.879 + 77.481 + 75.03 = C$317.2 Mil.
Total Current Assets was C$215.0 Mil.
Total Assets was C$255.4 Mil.
Property, Plant and Equipment(Net PPE) was C$14.3 Mil.
Depreciation, Depletion and Amortization(DDA) was C$3.9 Mil.
Selling, General & Admin. Expense(SGA) was C$247.4 Mil.
Total Current Liabilities was C$168.3 Mil.
Long-Term Debt was C$105.6 Mil.
Net Income was 3.755 + 1.243 + 1.97 + -5.423 = C$1.5 Mil.
Non Operating Income was -2.109 + -0.409 + -0.449 + -0.423 = C$-3.4 Mil.
Cash Flow from Operations was 11.626 + 0.481 + 4.472 + 12.257 = C$28.8 Mil.
Accounts Receivable was C$102.5 Mil.
Revenue was 73.605 + 76.182 + 73.456 + 72.109 = C$295.4 Mil.
Gross Profit was 73.605 + 76.182 + 73.456 + 72.109 = C$295.4 Mil.
Total Current Assets was C$229.8 Mil.
Total Assets was C$255.9 Mil.
Property, Plant and Equipment(Net PPE) was C$8.3 Mil.
Depreciation, Depletion and Amortization(DDA) was C$-74.3 Mil.
Selling, General & Admin. Expense(SGA) was C$237.0 Mil.
Total Current Liabilities was C$98.4 Mil.
Long-Term Debt was C$183.1 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)
=(109.693 / 317.209) / (102.539 / 295.352)
=0.34580671 / 0.34717557
=0.9961

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)
=(80.879 / 295.352) / (83.819 / 317.209)
=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 - (215.005 + 14.259) / 255.392) / (1 - (229.765 + 8.311) / 255.892)
=0.10230548 / 0.06962312
=1.4694

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
=317.209 / 295.352
=1.074

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))
=(-74.299 / (-74.299 + 8.311)) / (3.934 / (3.934 + 14.259))
=1.12594714 / 0.21623701
=5.207

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)
=(247.396 / 317.209) / (237.019 / 295.352)
=0.77991482 / 0.80249668
=0.9719

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)
=((105.629 + 168.343) / 255.392) / ((183.063 + 98.397) / 255.892)
=1.07275091 / 1.09991715
=0.9753

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
=(1.545 - -3.39 - 28.836) / 255.392
=-0.0936

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 -2.17 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.

IBI Group Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.91951.15181.23570.96961.01660.88561.03790.96720.8766
GMI 0.878111111111
AQI 0.95120.80911.05320.92520.99310.9590.96240.18841.366
SGI 1.54491.09851.42481.1511.05721.14851.01630.76211.1589
DEPI 1.21861.32550.8040.85430.97831.05210.93441.10722.7198
SGAI 1.14070.98230.89570.98931.02060.99991.07451.15730.8806
LVGI 0.96490.86451.67171.08641.1171.01870.97011.91271.0058
TATA 0.0570.02490.04620.04470.00950.0398-0.008-0.7505-0.1742
M-score -1.87-2.13-1.87-2.24-2.42-2.28-2.49-6.88-2.90

IBI Group Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.03271.10340.89530.92150.94320.80770.9470.95880.82320.9961
GMI 1111111111
AQI 0.68470.82020.18840.19610.27590.20541.3661.30171.35411.4694
SGI 0.95960.80350.82330.79570.76841.04951.07271.13261.19761.074
DEPI 0.93320.90260.58560.56170.52570.58825.14185.365.73675.207
SGAI 1.08881.22671.14161.13431.11820.87290.89280.88940.89020.9719
LVGI 1.36951.48311.91271.80961.58051.41691.00580.98430.97250.9753
TATA -0.1815-0.304-0.7497-0.7575-0.5398-0.48-0.1795-0.1794-0.1599-0.0936
M-score -3.61-4.26-6.94-6.94-5.82-5.34-2.66-2.59-2.50-2.17
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