Charles River Laboratories International (MEX:CRL) Beneish M-Score : -2.78 (As of Dec. 14, 2024)

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What is Charles River Laboratories International Beneish M-Score?

The zones of discrimination for M-Score is as such:

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.

Good Sign:

Beneish M-Score -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Charles River Laboratories International's Beneish M-Score or its related term are showing as below:

MEX:CRL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.83 Med: -2.59 Max: -2.38
Current: -2.78

During the past 13 years, the highest Beneish M-Score of Charles River Laboratories International was -2.38. The lowest was -2.83. And the median was -2.59.

Charles River Laboratories International Beneish M-Score Historical Data

The historical data trend for Charles River Laboratories International'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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Charles River Laboratories International Beneish M-Score Chart

Charles River Laboratories International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.62

-2.51

-2.63

-2.42

-2.60

Charles River Laboratories International Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.62	-2.60	-2.68	-2.71	-2.78

Competitive Comparison of Charles River Laboratories International's Beneish M-Score

For the Diagnostics & Research subindustry, Charles River Laboratories International'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.

Charles River Laboratories International's Beneish M-Score Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Charles River Laboratories International's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Charles River Laboratories International's Beneish M-Score falls into.

Charles River Laboratories International 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 Charles River Laboratories International for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1162

0.528 * 1.0491

0.404 * 1

0.892 * 0.9556

0.115 * 1.0919

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0415

4.679 * -0.057431

0.327 * 0.9195

-2.63

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was MXN14,851 Mil.
Revenue was 19882.536 + 18798.569 + 16788.108 + 17202.993 = MXN72,672 Mil.
Gross Profit was 6872.328 + 6480.059 + 5723.102 + 6180.069 = MXN25,256 Mil.
Total Current Assets was MXN29,432 Mil.
Total Assets was MXN157,598 Mil.
Property, Plant and Equipment(Net PPE) was MXN39,875 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN6,097 Mil.
Selling, General, & Admin. Expense(SGA) was MXN13,471 Mil.
Total Current Liabilities was MXN19,931 Mil.
Long-Term Debt & Capital Lease Obligation was MXN54,335 Mil.
Net Income was 1352.31 + 1648.589 + 1117.409 + 3175.61 = MXN7,294 Mil.
Non Operating Income was 51.037 + -41.037 + 96.806 + 1828.755 = MXN1,936 Mil.
Cash Flow from Operations was 4957.86 + 3545.581 + 2155.654 + 3750.341 = MXN14,409 Mil.

Total Receivables was MXN13,923 Mil.
Revenue was 17882.64 + 18171.454 + 18554.448 + 21442.539 = MXN76,051 Mil.
Gross Profit was 6302.854 + 6840.022 + 6807.213 + 7776.642 = MXN27,727 Mil.
Total Current Assets was MXN25,159 Mil.
Total Assets was MXN132,506 Mil.
Property, Plant and Equipment(Net PPE) was MXN33,110 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN5,606 Mil.
Selling, General, & Admin. Expense(SGA) was MXN13,536 Mil.
Total Current Liabilities was MXN17,311 Mil.
Long-Term Debt & Capital Lease Obligation was MXN50,596 Mil.

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)
	=	(14850.562 / 72672.206)	/	(13923.099 / 76051.081)
	=	0.20435	/	0.183076
	=	1.1162

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)
	=	(27726.731 / 76051.081)	/	(25255.558 / 72672.206)
	=	0.36458	/	0.347527
	=	1.0491

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 - (29431.544 + 39875.043) / 157598.05)	/	(1 - (25158.548 + 33109.961) / 132505.671)
	=	0.560232	/	0.560256
	=	1

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
	=	72672.206	/	76051.081
	=	0.9556

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))
	=	(5606.398 / (5606.398 + 33109.961))	/	(6096.948 / (6096.948 + 39875.043))
	=	0.144807	/	0.132623
	=	1.0919

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)
	=	(13471.223 / 72672.206)	/	(13536.036 / 76051.081)
	=	0.18537	/	0.177986
	=	1.0415

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)
	=	((54335.166 + 19930.935) / 157598.05)	/	((50595.869 + 17311.179) / 132505.671)
	=	0.471237	/	0.512484
	=	0.9195

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
	=	(7293.918 - 1935.561	-	14409.436)	/	157598.05
	=	-0.057431

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.

Charles River Laboratories International has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.

Charles River Laboratories International Beneish M-Score Related Terms

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Charles River Laboratories International Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Charles River Laboratories International Inc (MEX:CRL) » Definitions » Beneish M-Score

Comparable Companies

EXAS MEDP QGEN RVTY RDNT GH SHC NEOG VCYT TWST TMO DHR XSWX:LONN A IQV IDXX MTD ILMN WAT NTRA

Traded in Other Exchanges

CRL:USA RV6:Germany RV6:Germany

Address

251 Ballardvale Street, Wilmington, MA, USA, 01887

Website

https://www.criver.com

Charles River Laboratories was founded in 1947 and is a leading provider of drug discovery and development services. The company's research model & services segment is the leading provider of animal models for laboratory testing, which breeds and delivers animal research models with specific genetic characteristics for preclinical studies around the world. The discovery & safety assessment segment includes services required to take a drug through the early development process, including discovery services. The manufacturing support segment includes microbial solutions, which provides in vitro (non-animal) testing products, biologics testing services, and avian vaccine services.