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Clearfield Inc (NAS:CLFD)
Beneish M-Score
-2.29 (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.

Clearfield Inc has a M-score of -2.29 suggests that the company is not a manipulator.

CLFD' s Beneish M-Score Range Over the Past 10 Years
Min: -2600.89   Max: 152.11
Current: -2.29

-2600.89
152.11

During the past 13 years, the highest Beneish M-Score of Clearfield Inc was 152.11. The lowest was -2600.89. And the median was -2.54.


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 Clearfield 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 * 0.8758+0.528 * 0.9956+0.404 * 1.4517+0.892 * 1.1796+0.115 * 0.9989
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.079+4.679 * -0.0215-0.327 * 0.7574
=-2.29

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $8.11 Mil.
Revenue was 17.652 + 18.266 + 21.052 + 21.599 = $78.57 Mil.
Gross Profit was 7.443 + 7.209 + 9.573 + 9.34 = $33.57 Mil.
Total Current Assets was $47.36 Mil.
Total Assets was $71.41 Mil.
Property, Plant and Equipment(Net PPE) was $6.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.54 Mil.
Selling, General & Admin. Expense(SGA) was $24.48 Mil.
Total Current Liabilities was $5.04 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.908 + 0.877 + 2.909 + 2.282 = $6.98 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.594 + -0.605 + 6.41 + 2.112 = $8.51 Mil.
Accounts Receivable was $7.85 Mil.
Revenue was 16.947 + 15.69 + 15.771 + 18.196 = $66.60 Mil.
Gross Profit was 7.28 + 6.677 + 6.575 + 7.797 = $28.33 Mil.
Total Current Assets was $45.48 Mil.
Total Assets was $61.57 Mil.
Property, Plant and Equipment(Net PPE) was $5.38 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.38 Mil.
Selling, General & Admin. Expense(SGA) was $19.24 Mil.
Total Current Liabilities was $5.74 Mil.
Long-Term Debt was $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)
=(8.114 / 78.569) / (7.854 / 66.604)
=0.10327228 / 0.11792085
=0.8758

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)
=(28.329 / 66.604) / (33.565 / 78.569)
=0.42533481 / 0.42720411
=0.9956

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 - (47.356 + 6.025) / 71.405) / (1 - (45.483 + 5.377) / 61.565)
=0.2524193 / 0.17388126
=1.4517

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
=78.569 / 66.604
=1.1796

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))
=(1.376 / (1.376 + 5.377)) / (1.544 / (1.544 + 6.025))
=0.20376129 / 0.20398996
=0.9989

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)
=(24.484 / 78.569) / (19.236 / 66.604)
=0.31162418 / 0.28881148
=1.079

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 + 5.044) / 71.405) / ((0 + 5.742) / 61.565)
=0.07063931 / 0.09326728
=0.7574

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
=(6.976 - 0 - 8.511) / 71.405
=-0.0215

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.

Clearfield Inc has a M-score of -2.29 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 local exchange's currency.

Clearfield Inc Annual Data

Mar07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
DSRI 0.75280.9341.01241.21960.68920.87921.82110.58961.15031.0663
GMI 1.00740.85760.940.94830.90031.02120.98970.97251.0280.9442
AQI 1.02341.68141.08050.94940.78141.23410.610.97530.88641
SGI 1.19221.27921.06190.97681.44431.06481.42371.0881.03931.248
DEPI 1.2671.1620.95680.8821.05570.99441.27910.9461.25730.8786
SGAI 0.84710.91771.04791.07570.9490.94120.9281.01611.06620.9956
LVGI 0.71251.00880.65850.78111.38880.60391.70170.72320.88841.1905
TATA -0.0364-0.03320.07890.02410.02790.10270.0085-0.1176-0.0376-0.0479
M-score -2.54-2.22-1.94-2.19-2.49-1.81-1.65-3.27-2.46-2.53

Clearfield Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 2.16031.56031.65061.15030.97161.36470.99351.06631.18240.8758
GMI 1.00791.051.0441.0281.00680.95830.96290.94420.96970.9956
AQI 0.89730.76470.84930.88640.78710.92590.936711.38821.4517
SGI 0.94340.88870.9381.03931.10991.21011.18911.2481.25531.1796
DEPI 1.38731.55381.28341.25730.84050.74150.79390.87860.96240.9989
SGAI 1.12681.18991.14621.06621.01380.94480.97480.99561.01631.079
LVGI 0.88490.65240.79880.88840.86251.10010.9181.19050.99590.7574
TATA -0.0247-0.010.004-0.0376-0.0513-0.0107-0.0152-0.0479-0.0163-0.0215
M-score -1.56-2.03-1.88-2.46-2.71-2.11-2.43-2.53-2.03-2.29
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