Canadian Tire Beneish M-Score Historical Data
The historical data trend for Canadian Tire'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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Canadian Tire Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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|
|
|
|
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-2.53 |
-3.01 |
-2.59 |
-2.21 |
-2.64 |
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Canadian Tire Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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|
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|
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-2.21 |
-2.37 |
-2.49 |
-2.58 |
-2.64 |
Competitive Comparison
For the Specialty Retail subindustry, Canadian Tire'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.
Canadian Tire Beneish M-Score Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Canadian Tire's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Canadian Tire's Beneish M-Score falls into.
Canadian Tire 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 Canadian Tire 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 * 1.1198 | + | 0.528 * 0.9999 | + | 0.404 * 0.9742 | + | 0.892 * 0.9352 | + | 0.115 * 0.9614 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1222 | + | 4.679 * -0.035399 | - | 0.327 * 1.0371 |
| = | -2.64 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was C$7,769 Mil.
Revenue was 4443 + 4250.5 + 4255.8 + 3707.2 = C$16,657 Mil.
Gross Profit was 1536.8 + 1436.5 + 1448.4 + 1281.9 = C$5,704 Mil.
Total Current Assets was C$11,293 Mil.
Total Assets was C$21,978 Mil.
Property, Plant and Equipment(Net PPE) was C$7,153 Mil.
Depreciation, Depletion and Amortization(DDA) was C$802 Mil.
Selling, General, & Admin. Expense(SGA) was C$3,676 Mil.
Total Current Liabilities was C$6,389 Mil.
Long-Term Debt & Capital Lease Obligation was C$6,390 Mil.
Net Income was 172.5 + -66.4 + 99.4 + 7.8 = C$213 Mil.
Non Operating Income was -3.2 + -201.2 + -79 + -79 = C$-362 Mil.
Cash Flow from Operations was 869.9 + -28.5 + 823.4 + -311.1 = C$1,354 Mil.
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Total Receivables was C$7,419 Mil.
Revenue was 5340.4 + 4228.8 + 4404 + 3837.4 = C$17,811 Mil.
Gross Profit was 2018.4 + 1385.3 + 1382.8 + 1311.4 = C$6,098 Mil.
Total Current Assets was C$11,530 Mil.
Total Assets was C$22,102 Mil.
Property, Plant and Equipment(Net PPE) was C$6,926 Mil.
Depreciation, Depletion and Amortization(DDA) was C$744 Mil.
Selling, General, & Admin. Expense(SGA) was C$3,503 Mil.
Total Current Liabilities was C$7,147 Mil.
Long-Term Debt & Capital Lease Obligation was C$5,244 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) |
| = | (7768.8 / 16656.5) | / | (7418.5 / 17810.6) |
| = | 0.466413 | / | 0.416522 |
| | = | 1.1198 |
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) |
| = | (6097.9 / 17810.6) | / | (5703.6 / 16656.5) |
| = | 0.342375 | / | 0.342425 |
| | = | 0.9999 |
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 - (11293.1 + 7153.3) / 21978.3) | / | (1 - (11530.4 + 6926.1) / 22102.3) |
| = | 0.160699 | / | 0.164951 |
| | = | 0.9742 |
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 |
| = | 16656.5 | / | 17810.6 |
| | = | 0.9352 |
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)) |
| = | (743.5 / (743.5 + 6926.1)) | / | (802.2 / (802.2 + 7153.3)) |
| = | 0.096941 | / | 0.100836 |
| | = | 0.9614 |
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) |
| = | (3675.7 / 16656.5) | / | (3502.5 / 17810.6) |
| = | 0.220677 | / | 0.196653 |
| | = | 1.1222 |
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) |
| = | ((6390 + 6389) / 21978.3) | / | ((5243.9 + 7147) / 22102.3) |
| = | 0.581437 | / | 0.560616 |
| | = | 1.0371 |
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 |
| = | (213.3 - -362.4 | - | 1353.7) | / | 21978.3 |
| | = | -0.035399 |
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.
Canadian Tire has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.
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