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Commercial Metals Co (Commercial Metals Co) Beneish M-Score : -2.87 (As of Apr. 26, 2024)


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What is Commercial Metals Co 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 -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CMC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.75   Med: -2.4   Max: -1.02
Current: -2.87

During the past 13 years, the highest Beneish M-Score of Commercial Metals Co was -1.02. The lowest was -3.75. And the median was -2.40.


Commercial Metals Co Beneish M-Score Historical Data

The historical data trend for Commercial Metals Co'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.

Commercial Metals Co Beneish M-Score Chart

Commercial Metals Co Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.01 -3.06 -1.99 -1.71 -2.78

Commercial Metals Co Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.92 -2.71 -2.78 -2.81 -2.87

Competitive Comparison of Commercial Metals Co's Beneish M-Score

For the Steel subindustry, Commercial Metals Co'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.


Commercial Metals Co's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Commercial Metals Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Commercial Metals Co's Beneish M-Score falls into.



Commercial Metals Co 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 Commercial Metals Co 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 * 0.9655+0.528 * 1.1274+0.404 * 0.9201+0.892 * 0.9168+0.115 * 0.8901
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2113+4.679 * -0.067437-0.327 * 0.8488
=-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 (Feb24) TTM:Last Year (Feb23) TTM:
Total Receivables was $1,119 Mil.
Revenue was 1848.287 + 2003.051 + 2209.228 + 2344.989 = $8,406 Mil.
Gross Profit was 296.241 + 398.983 + 425.086 + 482.69 = $1,603 Mil.
Total Current Assets was $3,198 Mil.
Total Assets was $6,662 Mil.
Property, Plant and Equipment(Net PPE) was $2,475 Mil.
Depreciation, Depletion and Amortization(DDA) was $254 Mil.
Selling, General, & Admin. Expense(SGA) was $667 Mil.
Total Current Liabilities was $763 Mil.
Long-Term Debt & Capital Lease Obligation was $1,126 Mil.
Net Income was 85.847 + 176.273 + 184.166 + 233.971 = $680 Mil.
Non Operating Income was 0 + 0 + -4.887 + -0.789 = $-6 Mil.
Cash Flow from Operations was 88.961 + 261.06 + 409.424 + 375.772 = $1,135 Mil.
Total Receivables was $1,264 Mil.
Revenue was 2018.003 + 2227.313 + 2407.065 + 2515.727 = $9,168 Mil.
Gross Profit was 396.24 + 507.899 + 507.814 + 559.268 = $1,971 Mil.
Total Current Assets was $3,278 Mil.
Total Assets was $6,485 Mil.
Property, Plant and Equipment(Net PPE) was $2,160 Mil.
Depreciation, Depletion and Amortization(DDA) was $195 Mil.
Selling, General, & Admin. Expense(SGA) was $601 Mil.
Total Current Liabilities was $1,066 Mil.
Long-Term Debt & Capital Lease Obligation was $1,100 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)
=(1118.514 / 8405.555) / (1263.547 / 9168.108)
=0.133068 / 0.13782
=0.9655

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)
=(1971.221 / 9168.108) / (1603 / 8405.555)
=0.215008 / 0.190707
=1.1274

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 - (3198.09 + 2474.52) / 6662.265) / (1 - (3278.146 + 2159.73) / 6484.851)
=0.148546 / 0.161449
=0.9201

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
=8405.555 / 9168.108
=0.9168

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))
=(195.063 / (195.063 + 2159.73)) / (253.916 / (253.916 + 2474.52))
=0.082837 / 0.093063
=0.8901

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)
=(666.961 / 8405.555) / (600.581 / 9168.108)
=0.079348 / 0.065508
=1.2113

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)
=((1126.216 + 762.547) / 6662.265) / ((1099.728 + 1066.148) / 6484.851)
=0.283502 / 0.33399
=0.8488

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
=(680.257 - -5.676 - 1135.217) / 6662.265
=-0.067437

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.

Commercial Metals Co has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.


Commercial Metals Co Beneish M-Score Related Terms

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Commercial Metals Co (Commercial Metals Co) Business Description

Traded in Other Exchanges
Address
6565 North MacArthur Boulevard, Irving, TX, USA, 75039
Commercial Metals Co operates steel mills, steel fabrication plants, and metal recycling facilities in the United States and manufactures rebar and structural steel, which are key product categories for the nonresidential construction sector. The Company has two reportable segments: North America and Europe.
Executives
Barbara Smith director, officer: Chairman, President & CEO 6565 N. MACARTHUR BLVD., SUITE 800, IVING TX 75039
Stephen William Simpson officer: SVP, N. American Steel Group 6565 NORTH MACARTHUR BLVD., SUITE 800, IRVING TX 75039
Peter R Matt director 6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039
Lindsay L Sloan officer: VP, Chief Accounting Officer 6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039
Ty L Garrison officer: SVP Operations 6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039
Robert S Wetherbee director MINERALS TECHNOLOGIES INC, 622 THIRD AVENUE 38TH FL, NEW YORK NY 10017
John R Mcpherson director 1200 URBAN CENTER DRIVE, BIRMINGHAM AL 35242
Tracy L Porter officer: EVP & Chief Operating Officer 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039
Gary E Mccullough director 231 N. MARTINGALE ROAD, SCHAUMBURG IL 60173
Jody K Absher officer: VP General Counsel & Corp Sec 6565 N. MACARTHUR BLVD, STE 800, IRVING TX 75039
Paul James Lawrence officer: VP & Chief Financial Officer 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039
Adam R Hickey officer: VP & Chief Accounting Officer 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039
Lisa M Barton director AMERICAN ELECTRIC POWER COMPANY, INC., 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
J David Smith director GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084
Charles L Szews director 6565 N. MACARTHUR BLVD., SUITE 800, IRVING TX 75039

Commercial Metals Co (Commercial Metals Co) Headlines