CI Financial (CI Financial) Beneish M-Score : -2.38 (As of Apr. 26, 2024)

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What is CI Financial 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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for CI Financial's Beneish M-Score or its related term are showing as below:

CIXXF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77 Med: -2.5 Max: -2.08
Current: -2.38

During the past 13 years, the highest Beneish M-Score of CI Financial was -2.08. The lowest was -2.77. And the median was -2.50.

CI Financial Beneish M-Score Historical Data

The historical data trend for CI Financial'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.

* Premium members only.

CI Financial Beneish M-Score Chart

CI Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.77

-2.51

-2.61

-2.19

-2.38

CI Financial Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.19	-2.10	-2.05	-2.16	-2.38

Competitive Comparison of CI Financial's Beneish M-Score

For the Asset Management subindustry, CI Financial'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.

CI Financial's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, CI Financial's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where CI Financial's Beneish M-Score falls into.

CI Financial 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 CI Financial 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 * 1.2441

0.528 * 0.9821

0.404 * 1.0121

0.892 * 1.0321

0.115 * 1.1976

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2653

4.679 * -0.014632

0.327 * 1.1095

-2.36

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $315 Mil.
Revenue was 832.065 + 500.624 + 491.599 + 465.511 = $2,290 Mil.
Gross Profit was 406.793 + 419.117 + 410.178 + 386.711 = $1,623 Mil.
Total Current Assets was $1,249 Mil.
Total Assets was $7,440 Mil.
Property, Plant and Equipment(Net PPE) was $235 Mil.
Depreciation, Depletion and Amortization(DDA) was $142 Mil.
Selling, General, & Admin. Expense(SGA) was $1,017 Mil.
Total Current Liabilities was $3,735 Mil.
Long-Term Debt & Capital Lease Obligation was $2,501 Mil.
Net Income was -47.323 + -9.175 + 38.351 + 21.902 = $4 Mil.
Non Operating Income was -82.551 + -85.411 + 4.489 + -57.241 = $-221 Mil.
Cash Flow from Operations was 51.818 + 69.896 + 106.823 + 104.794 = $333 Mil.

Total Receivables was $245 Mil.
Revenue was 814.219 + 440.373 + 469.064 + 495.028 = $2,219 Mil.
Gross Profit was 375.789 + 366.685 + 391.189 + 410.582 = $1,544 Mil.
Total Current Assets was $1,350 Mil.
Total Assets was $7,146 Mil.
Property, Plant and Equipment(Net PPE) was $144 Mil.
Depreciation, Depletion and Amortization(DDA) was $118 Mil.
Selling, General, & Admin. Expense(SGA) was $779 Mil.
Total Current Liabilities was $2,420 Mil.
Long-Term Debt & Capital Lease Obligation was $2,978 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)
	=	(314.505 / 2289.799)	/	(244.952 / 2218.684)
	=	0.13735	/	0.110404
	=	1.2441

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)
	=	(1544.245 / 2218.684)	/	(1622.799 / 2289.799)
	=	0.696018	/	0.708708
	=	0.9821

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 - (1248.848 + 234.675) / 7440.074)	/	(1 - (1349.599 + 143.547) / 7146.381)
	=	0.800604	/	0.791063
	=	1.0121

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
	=	2289.799	/	2218.684
	=	1.0321

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))
	=	(118.406 / (118.406 + 143.547))	/	(142.262 / (142.262 + 234.675))
	=	0.452012	/	0.377416
	=	1.1976

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)
	=	(1017.017 / 2289.799)	/	(778.83 / 2218.684)
	=	0.444151	/	0.351032
	=	1.2653

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)
	=	((2500.896 + 3734.542) / 7440.074)	/	((2977.971 + 2420.357) / 7146.381)
	=	0.838088	/	0.755393
	=	1.1095

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
	=	(3.755 - -220.714	-	333.331)	/	7440.074
	=	-0.014632

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.

CI Financial has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.

CI Financial Beneish M-Score Related Terms

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CI Financial (CI Financial) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

CF7:Germany CIX:Canada

Address

15 York Street, 2nd Floor, Legal Department, Toronto, ON, CAN, M5J 0A3

Website

https://www.cifinancial.com

CI Financial is a diversified provider of wealth management products and services, primarily in the Canadian market. The company had CAD 119.0 billion in core assets under management, another CAD 278.5 billion in wealth management assets under advisement, and CAD 23.4 billion in assets under custody at the end of September 2023, making it one of the largest nonbank affiliated asset managers in Canada. The company operates its fund business through CI Global Asset Management, which offers a broad selection of investment funds. On the wealth management side, the company operates through CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth, as well as a large group of acquired U.S.-based advisors, providing financial advice primarily to high-net-worth clients.