Switch to:
CA Inc  (NAS:CA) Beneish M-Score: -2.46 (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.

CA Inc has a M-score of -2.46 suggests that the company is not a manipulator.

NAS:CA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.95   Max: -1.18
Current: -2.46

-3.95
-1.18

During the past 13 years, the highest Beneish M-Score of CA Inc was -1.18. The lowest was -3.95. And the median was -2.69.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

CA Inc Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.69 -2.58 -2.69 -2.64 -2.36

CA Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.72 -2.50 -2.67 -2.36 -2.46

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 CA 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 * 1.1777+0.528 * 0.9951+0.404 * 1.0296+0.892 * 1.0037+0.115 * 1.0457
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0243+4.679 * -0.0302-0.327 * 1.0465
=-2.46

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jun17) TTM:Last Year (Jun16) TTM:
Accounts Receivable was $461 Mil.
Revenue was 1025 + 1012 + 1007 + 1018 = $4,062 Mil.
Gross Profit was 881 + 863 + 865 + 879 = $3,488 Mil.
Total Current Assets was $3,612 Mil.
Total Assets was $12,476 Mil.
Property, Plant and Equipment(Net PPE) was $234 Mil.
Depreciation, Depletion and Amortization(DDA) was $330 Mil.
Selling, General, & Admin. Expense(SGA) was $1,426 Mil.
Total Current Liabilities was $2,717 Mil.
Long-Term Debt & Capital Lease Obligation was $2,770 Mil.
Net Income was 178 + 157 + 208 + 212 = $755 Mil.
Non-Recurring Items was -11 + 10 + 17 + -27 = $-11 Mil.
Cash Flow from Operations was 298 + 419 + 517 + -91 = $1,143 Mil.
Accounts Receivable was $390 Mil.
Revenue was 999 + 1009 + 1034 + 1005 = $4,047 Mil.
Gross Profit was 856 + 859 + 886 + 857 = $3,458 Mil.
Total Current Assets was $3,350 Mil.
Total Assets was $10,907 Mil.
Property, Plant and Equipment(Net PPE) was $229 Mil.
(DDA) was $361 Mil.
Selling, General, & Admin. Expense(SGA) was $1,387 Mil.
Total Current Liabilities was $2,638 Mil.
Long-Term Debt & Capital Lease Obligation was $1,946 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(461 / 4062) / (390 / 4047)
=0.11349089 / 0.09636768
=1.1777

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)
=(3458 / 4047) / (3488 / 4062)
=0.85446009 / 0.8586903
=0.9951

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3612 + 234) / 12476) / (1 - (3350 + 229) / 10907)
=0.69172812 / 0.67186211
=1.0296

4. SGI = Sales Growth Index

Ratio of Revenue 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
=4062 / 4047
=1.0037

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(361 / (361 + 229)) / (330 / (330 + 234))
=0.61186441 / 0.58510638
=1.0457

6. SGAI = Sales, General and Administrative expenses Index

The ratio of c 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)
=(1426 / 4062) / (1387 / 4047)
=0.35105859 / 0.342723
=1.0243

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)
=((2770 + 2717) / 12476) / ((1946 + 2638) / 10907)
=0.43980442 / 0.42028055
=1.0465

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
=(755 - -11 - 1143) / 12476
=-0.0302

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.

CA Inc has a M-score of -2.46 suggests that the company will not be a manipulator.


Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK