Air Canada Beneish M-Score Historical Data
The historical data trend for Air 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.
Air Canada Beneish M-Score Chart
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Air Canada Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.85 |
-3.12 |
-2.13 |
-3.16 |
-2.94 |
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Air Canada Quarterly Data
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Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
| Beneish M-Score |
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-2.92 |
-2.91 |
-2.81 |
-2.94 |
-2.94 |
Competitive Comparison of Air Canada's Beneish M-Score
For the Airlines subindustry, Air 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.
Air Canada's Beneish M-Score Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Air Canada's Beneish M-Score falls into.
Air 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 Air 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 * 0.9244 | + | 0.528 * 0.6906 | + | 0.404 * 0.9953 | + | 0.892 * 1.175 | + | 0.115 * 0.9716 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9938 | + | 4.679 * -0.087131 | - | 0.327 * 0.9231 |
| = | -2.94 |
* 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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was C$1,185 Mil.
Revenue was 5226 + 5175 + 6344 + 5427 = C$22,172 Mil.
Gross Profit was 1061 + 1045 + 2443 + 1727 = C$6,276 Mil.
Total Current Assets was C$9,751 Mil.
Total Assets was C$29,714 Mil.
Property, Plant and Equipment(Net PPE) was C$12,019 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1,717 Mil.
Selling, General, & Admin. Expense(SGA) was C$1,685 Mil.
Total Current Liabilities was C$11,510 Mil.
Long-Term Debt & Capital Lease Obligation was C$11,248 Mil.
Net Income was -81 + 184 + 1250 + 838 = C$2,191 Mil.
Non Operating Income was 9 + 151 + 22 + 123 = C$305 Mil.
Cash Flow from Operations was 1592 + 985 + 408 + 1490 = C$4,475 Mil.
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Total Receivables was C$1,091 Mil.
Revenue was 4887 + 4680 + 5322 + 3981 = C$18,870 Mil.
Gross Profit was 935 + 840 + 1470 + 444 = C$3,689 Mil.
Total Current Assets was C$10,275 Mil.
Total Assets was C$30,476 Mil.
Property, Plant and Equipment(Net PPE) was C$12,015 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1,661 Mil.
Selling, General, & Admin. Expense(SGA) was C$1,443 Mil.
Total Current Liabilities was C$10,386 Mil.
Long-Term Debt & Capital Lease Obligation was C$14,901 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) |
| = | (1185 / 22172) | / | (1091 / 18870) |
| = | 0.053446 | / | 0.057817 |
| | = | 0.9244 |
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) |
| = | (3689 / 18870) | / | (6276 / 22172) |
| = | 0.195495 | / | 0.28306 |
| | = | 0.6906 |
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 - (9751 + 12019) / 29714) | / | (1 - (10275 + 12015) / 30476) |
| = | 0.267349 | / | 0.268605 |
| | = | 0.9953 |
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 |
| = | 22172 | / | 18870 |
| | = | 1.175 |
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)) |
| = | (1661 / (1661 + 12015)) | / | (1717 / (1717 + 12019)) |
| = | 0.121454 | / | 0.125 |
| | = | 0.9716 |
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) |
| = | (1685 / 22172) | / | (1443 / 18870) |
| = | 0.075997 | / | 0.076471 |
| | = | 0.9938 |
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) |
| = | ((11248 + 11510) / 29714) | / | ((14901 + 10386) / 30476) |
| = | 0.765902 | / | 0.829735 |
| | = | 0.9231 |
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 |
| = | (2191 - 305 | - | 4475) | / | 29714 |
| | = | -0.087131 |
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.
Air Canada has a M-score of -2.94 suggests that the company is unlikely to be a manipulator.
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