Sears Canada Beneish M-Score Historical Data
The historical data trend for Sears Canada'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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Sears Canada Annual Data
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Trend |
Jan08 |
Jan09 |
Jan10 |
Jan11 |
Jan12 |
Jan13 |
Jan14 |
Jan15 |
Jan16 |
Jan17 |
| Beneish M-Score |
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-2.86 |
-2.85 |
-1.48 |
-3.22 |
-3.25 |
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Sears Canada Quarterly Data
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Jul12 |
Oct12 |
Jan13 |
Apr13 |
Jul13 |
Oct13 |
Jan14 |
Apr14 |
Jul14 |
Oct14 |
Jan15 |
Apr15 |
Jul15 |
Oct15 |
Jan16 |
Apr16 |
Jul16 |
Oct16 |
Jan17 |
Apr17 |
| Beneish M-Score |
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-3.26 |
-3.43 |
-3.51 |
-3.25 |
-2.74 |
Competitive Comparison
For the Department Stores subindustry, Sears Canada'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.
Sears Canada Beneish M-Score Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Sears Canada's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Sears Canada's Beneish M-Score falls into.
Sears Canada 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 Sears Canada 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 * 1.2841 | + | 0.528 * 1.1744 | + | 0.404 * 0.3691 | + | 0.892 * 0.8325 | + | 0.115 * 1.193 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0617 | + | 4.679 * -0.026841 | - | 0.327 * 1.4593 |
| = | -2.80 |
* 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 (Apr17) TTM: | Last Year (Apr16) TTM: |
Total Receivables was $55 Mil.
Revenue was 376.2 + 564.363 + 471.813 + 496.859 = $1,909 Mil.
Gross Profit was 84.989 + 139.119 + 134.933 + 140.132 = $499 Mil.
Total Current Assets was $701 Mil.
Total Assets was $884 Mil.
Property, Plant and Equipment(Net PPE) was $174 Mil.
Depreciation, Depletion and Amortization(DDA) was $19 Mil.
Selling, General, & Admin. Expense(SGA) was $846 Mil.
Total Current Liabilities was $393 Mil.
Long-Term Debt & Capital Lease Obligation was $102 Mil.
Net Income was -107.464 + -34.742 + -90.559 + -70.181 = $-303 Mil.
Non Operating Income was -0.298 + 45.437 + 4.075 + 0 = $49 Mil.
Cash Flow from Operations was -175.262 + 1.669 + -120.217 + -34.631 = $-328 Mil.
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Total Receivables was $52 Mil.
Revenue was 464.893 + 624.718 + 605.952 + 597.683 = $2,293 Mil.
Gross Profit was 131.066 + 179.547 + 197.674 + 195.833 = $704 Mil.
Total Current Assets was $914 Mil.
Total Assets was $1,205 Mil.
Property, Plant and Equipment(Net PPE) was $259 Mil.
Depreciation, Depletion and Amortization(DDA) was $35 Mil.
Selling, General, & Admin. Expense(SGA) was $957 Mil.
Total Current Liabilities was $448 Mil.
Long-Term Debt & Capital Lease Obligation was $15 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) |
| = | (55.295 / 1909.235) | / | (51.724 / 2293.246) |
| = | 0.028962 | / | 0.022555 |
| | = | 1.2841 |
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) |
| = | (704.12 / 2293.246) | / | (499.173 / 1909.235) |
| = | 0.307041 | / | 0.261452 |
| | = | 1.1744 |
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 - (701.347 + 173.551) / 883.679) | / | (1 - (913.715 + 259.167) / 1205.336) |
| = | 0.009937 | / | 0.026925 |
| | = | 0.3691 |
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 |
| = | 1909.235 | / | 2293.246 |
| | = | 0.8325 |
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)) |
| = | (34.599 / (34.599 + 259.167)) | / | (19.01 / (19.01 + 173.551)) |
| = | 0.117777 | / | 0.098722 |
| | = | 1.193 |
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) |
| = | (846.173 / 1909.235) | / | (957.296 / 2293.246) |
| = | 0.4432 | / | 0.417441 |
| | = | 1.0617 |
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) |
| = | ((102.404 + 392.796) / 883.679) | / | ((15.057 + 447.808) / 1205.336) |
| = | 0.560384 | / | 0.384013 |
| | = | 1.4593 |
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 |
| = | (-302.946 - 49.214 | - | -328.441) | / | 883.679 |
| | = | -0.026841 |
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.
Sears Canada has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.
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