CONN has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Beneish M-Score -1.13 higher than -2.22, which implies that it might have manipulated its financial results.
The zones of discrimination for M-Score is as such:
An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
During the past 13 years, the highest Beneish M-Score of Conn's Inc was 8.17. The lowest was -3.98. And the median was -2.16.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Conn's Inc 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 * 0.9452||+||0.528 * 1.024||+||0.404 * 1.0063||+||0.892 * 1.1452||+||0.115 * 1.0044|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9557||+||4.679 * 0.2709||-||0.327 * 1.057|
|This Year (Jul15) TTM:||Last Year (Jul14) TTM:|
|Accounts Receivable was $686 Mil.|
Revenue was 396.05 + 365.076 + 426.748 + 370.058 = $1,558 Mil.
Gross Profit was 193.589 + 177.943 + 162.992 + 189.557 = $724 Mil.
Total Current Assets was $986 Mil.
Total Assets was $1,752 Mil.
Property, Plant and Equipment(Net PPE) was $134 Mil.
Depreciation, Depletion and Amortization(DDA) was $23 Mil.
Selling, General & Admin. Expense(SGA) was $381 Mil.
Total Current Liabilities was $167 Mil.
Long-Term Debt was $811 Mil.
Net Income was 16.538 + 15.677 + 15.458 + -3.064 = $45 Mil.
Non Operating Income was -71.104 + -66.597 + -76.291 + -65.449 = $-279 Mil.
Cash Flow from Operations was -69.797 + 56.351 + -63.107 + -74.118 = $-151 Mil.
|Accounts Receivable was $634 Mil.
Revenue was 352.964 + 335.448 + 361.141 + 310.876 = $1,360 Mil.
Gross Profit was 182.376 + 161.084 + 146.41 + 157.603 = $647 Mil.
Total Current Assets was $817 Mil.
Total Assets was $1,449 Mil.
Property, Plant and Equipment(Net PPE) was $112 Mil.
Depreciation, Depletion and Amortization(DDA) was $20 Mil.
Selling, General & Admin. Expense(SGA) was $348 Mil.
Total Current Liabilities was $159 Mil.
Long-Term Debt was $607 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(685.933 / 1557.932)||/||(633.68 / 1360.429)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(177.943 / 1360.429)||/||(193.589 / 1557.932)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (985.634 + 133.674) / 1752.072)||/||(1 - (816.954 + 112.149) / 1449.195)|
4. SGI = Sales Growth Index
Ratio of sales 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.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation 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))|
|=||(19.56 / (19.56 + 112.149))||/||(23.194 / (23.194 + 133.674))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses 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)|
|=||(381.065 / 1557.932)||/||(348.175 / 1360.429)|
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$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((811.24 + 167.083) / 1752.072)||/||((606.98 + 158.584) / 1449.195)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(44.609 - -279.441||-||-150.671)||/||1752.072|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
Conn's Inc has a M-score of -1.13 signals that the company is likely to be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
Conn's Inc Annual Data
Conn's Inc Quarterly Data