CarMax Beneish M-Score Historical Data
The historical data trend for CarMax's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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CarMax Annual Data
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Trend |
Feb14 |
Feb15 |
Feb16 |
Feb17 |
Feb18 |
Feb19 |
Feb20 |
Feb21 |
Feb22 |
Feb23 |
| Beneish M-Score |
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|
|
|
|
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-2.27 |
-1.90 |
-2.19 |
-0.74 |
-3.01 |
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CarMax Quarterly Data
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Nov18 |
Feb19 |
May19 |
Aug19 |
Nov19 |
Feb20 |
May20 |
Aug20 |
Nov20 |
Feb21 |
May21 |
Aug21 |
Nov21 |
Feb22 |
May22 |
Aug22 |
Nov22 |
Feb23 |
May23 |
Aug23 |
| Beneish M-Score |
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-2.19 |
-2.95 |
-3.01 |
-2.98 |
-2.87 |
Competitive Comparison
For the Auto & Truck Dealerships subindustry, CarMax's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
CarMax Beneish M-Score Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, CarMax's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where CarMax's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.
CarMax Beneish M-Score 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 CarMax 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 * 0.8427 | + | 0.528 * 0.9375 | + | 0.404 * 1.0321 | + | 0.892 * 0.8016 | + | 0.115 * 1.1643 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1426 | + | 4.679 * -0.011004 | - | 0.327 * 0.9804 |
| = | -2.87 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Aug23) TTM: | Last Year (Aug22) TTM: |
Total Receivables was $272 Mil.
Revenue was 7073.836 + 7687.063 + 5722.493 + 6505.956 = $26,989 Mil.
Gross Profit was 696.765 + 817.39 + 610.979 + 576.688 = $2,702 Mil.
Total Current Assets was $5,386 Mil.
Total Assets was $27,300 Mil.
Property, Plant and Equipment(Net PPE) was $4,079 Mil.
Depreciation, Depletion and Amortization(DDA) was $254 Mil.
Selling, General, & Admin. Expense(SGA) was $2,359 Mil.
Total Current Liabilities was $2,320 Mil.
Long-Term Debt & Capital Lease Obligation was $18,601 Mil.
Net Income was 118.635 + 228.298 + 69.012 + 37.58 = $454 Mil.
Non Operating Income was 2.63 + 1.214 + 7.098 + 0.363 = $11 Mil.
Cash Flow from Operations was 124.165 + -185.285 + -378.745 + 1182.488 = $743 Mil.
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Total Receivables was $402 Mil.
Revenue was 8144.803 + 9311.621 + 7686.695 + 8527.759 = $33,671 Mil.
Gross Profit was 737.145 + 875.391 + 710.989 + 836.56 = $3,160 Mil.
Total Current Assets was $5,872 Mil.
Total Assets was $26,471 Mil.
Property, Plant and Equipment(Net PPE) was $3,843 Mil.
Depreciation, Depletion and Amortization(DDA) was $282 Mil.
Selling, General, & Admin. Expense(SGA) was $2,576 Mil.
Total Current Liabilities was $2,132 Mil.
Long-Term Debt & Capital Lease Obligation was $18,559 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (271.874 / 26989.348) | / | (402.452 / 33670.878) |
| = | 0.010073 | / | 0.011953 |
| | = | 0.8427 |
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) |
| = | (3160.085 / 33670.878) | / | (2701.822 / 26989.348) |
| = | 0.093852 | / | 0.100107 |
| | = | 0.9375 |
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 - (5386.371 + 4079.401) / 27300.161) | / | (1 - (5872.459 + 3842.89) / 26470.543) |
| = | 0.65327 | / | 0.632975 |
| | = | 1.0321 |
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 |
| = | 26989.348 | / | 33670.878 |
| | = | 0.8016 |
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)) |
| = | (281.791 / (281.791 + 3842.89)) | / | (254.292 / (254.292 + 4079.401)) |
| = | 0.068318 | / | 0.058678 |
| | = | 1.1643 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (2358.9 / 26989.348) | / | (2575.6 / 33670.878) |
| = | 0.087401 | / | 0.076493 |
| | = | 1.1426 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((18601.261 + 2320.388) / 27300.161) | / | ((18558.76 + 2132.189) / 26470.543) |
| = | 0.766356 | / | 0.781659 |
| | = | 0.9804 |
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 |
| = | (453.525 - 11.305 | - | 742.623) | / | 27300.161 |
| | = | -0.011004 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
CarMax has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.
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