Switch to:
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Carlisle Companies Inc (NYSE:CSL)
Beneish M-Score
-2.44 (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.

Carlisle Companies Inc has a M-score of -2.44 suggests that the company is not a manipulator.

CSL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38   Max: -1.1
Current: -2.44

-3.38
-1.1

During the past 13 years, the highest Beneish M-Score of Carlisle Companies Inc was -1.10. The lowest was -3.38. And the median was -2.52.


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 Carlisle Companies 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 * 1.0703+0.528 * 0.959+0.404 * 1.0699+0.892 * 1.0305+0.115 * 1.0397
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0891+4.679 * -0.0185-0.327 * 0.8922
=-2.44

* 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 $560 Mil.
Revenue was 857.3 + 893.5 + 991 + 996.9 = $3,739 Mil.
Gross Profit was 247.7 + 267.1 + 323.6 + 321.2 = $1,160 Mil.
Total Current Assets was $1,191 Mil.
Total Assets was $4,071 Mil.
Property, Plant and Equipment(Net PPE) was $661 Mil.
Depreciation, Depletion and Amortization(DDA) was $143 Mil.
Selling, General & Admin. Expense(SGA) was $548 Mil.
Total Current Liabilities was $508 Mil.
Long-Term Debt was $597 Mil.
Net Income was 61.8 + 76.2 + -9.8 + 115.2 = $243 Mil.
Non Operating Income was 1.5 + 1.4 + -139.3 + 1.2 = $-135 Mil.
Cash Flow from Operations was 31.9 + 176.1 + 175.2 + 70.9 = $454 Mil.
Accounts Receivable was $508 Mil.
Revenue was 794 + 876.2 + 973.1 + 984.6 = $3,628 Mil.
Gross Profit was 245.4 + 252.8 + 295.5 + 285.4 = $1,079 Mil.
Total Current Assets was $1,383 Mil.
Total Assets was $4,026 Mil.
Property, Plant and Equipment(Net PPE) was $592 Mil.
Depreciation, Depletion and Amortization(DDA) was $135 Mil.
Selling, General & Admin. Expense(SGA) was $488 Mil.
Total Current Liabilities was $629 Mil.
Long-Term Debt was $596 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)
=(560 / 3738.7) / (507.7 / 3627.9)
=0.14978468 / 0.13994322
=1.0703

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)
=(1079.1 / 3627.9) / (1159.6 / 3738.7)
=0.2974448 / 0.31016129
=0.959

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 - (1191.2 + 660.9) / 4070.7) / (1 - (1382.7 + 592.3) / 4025.8)
=0.54501683 / 0.50941428
=1.0699

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
=3738.7 / 3627.9
=1.0305

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))
=(134.5 / (134.5 + 592.3)) / (143.1 / (143.1 + 660.9))
=0.18505779 / 0.17798507
=1.0397

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)
=(547.6 / 3738.7) / (487.9 / 3627.9)
=0.14646802 / 0.13448552
=1.0891

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)
=((596.5 + 508.3) / 4070.7) / ((595.8 + 628.8) / 4025.8)
=0.27140295 / 0.30418799
=0.8922

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
=(243.4 - -135.2 - 454.1) / 4070.7
=-0.0185

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.

Carlisle Companies Inc has a M-score of -2.44 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.

Carlisle Companies Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.81340.85841.1951.23731.26160.74320.93611.00961.03460.9815
GMI 1.02491.10710.87911.02890.89250.87141.06160.99050.90020.9023
AQI 1.09091.1351.1921.1341.12251.18940.80921.01781.21640.9635
SGI 1.15951.15870.72541.10070.9861.14411.03211.08871.10591.0373
DEPI 0.92841.04940.92761.07540.87510.73770.98721.16720.88311.0104
SGAI 1.06291.00091.19961.00680.97591.04310.96130.9841.10211.1103
LVGI 0.83741.05340.69271.42591.1240.9240.91250.94131.00080.9204
TATA -0.0459-0.0455-0.14240.0151-0.0035-0.0624-0.0587-0.0123-0.053-0.0366
M-score -2.64-2.58-3.14-2.16-2.33-2.88-2.80-2.41-2.60-2.69

Carlisle Companies Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.00960.98681.06460.99391.03461.01990.92380.95160.98151.0703
GMI 0.99051.00140.96940.93920.90020.85560.85890.87910.90230.959
AQI 1.01781.02431.32261.32981.21641.21190.95880.96410.96351.0699
SGI 1.08871.10091.11791.10171.10591.11191.07441.05821.03731.0305
DEPI 1.16721.09040.99880.89130.88310.88660.93260.98181.01041.0397
SGAI 0.9840.98321.02321.08481.10211.14011.10721.08451.11031.0891
LVGI 0.94130.940.97010.96741.00081.01180.97020.91370.92040.8922
TATA -0.0123-0.011-0.0251-0.0475-0.053-0.0596-0.0464-0.0352-0.0366-0.0185
M-score -2.41-2.41-2.31-2.53-2.60-2.67-2.81-2.70-2.69-2.44
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)
FEEDBACK