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Carbo Ceramics Inc (NYSE:CRR)
Beneish M-Score
-5.07 (As of Today)

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.

Carbo Ceramics Inc has a M-score of -5.06 suggests that the company is not a manipulator.

CRR' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 268.41
Current: -5.07

-10000000
268.41

During the past 13 years, the highest Beneish M-Score of Carbo Ceramics Inc was 268.41. The lowest was -10000000.00. And the median was -2.45.


Definition

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 Carbo Ceramics 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 * 0.8009+0.528 * -0.2932+0.404 * 0.5458+0.892 * 0.3963+0.115 * 0.9447
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.976+4.679 * -0.1739-0.327 * 1.0278
=-5.06

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $21.9 Mil.
Revenue was 20.651 + 33.102 + 56.768 + 75.807 = $186.3 Mil.
Gross Profit was -20.012 + -23.641 + -15.228 + -4.597 = $-63.5 Mil.
Total Current Assets was $211.3 Mil.
Total Assets was $742.7 Mil.
Property, Plant and Equipment(Net PPE) was $517.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $51.9 Mil.
Selling, General & Admin. Expense(SGA) was $53.2 Mil.
Total Current Liabilities was $34.1 Mil.
Long-Term Debt was $73.8 Mil.
Net Income was -20.296 + -24.684 + -50.04 + -13.898 = $-108.9 Mil.
Non Operating Income was 0.008 + 0.076 + -0.318 + -0.064 = $-0.3 Mil.
Cash Flow from Operations was 17.729 + -8.295 + 2.448 + 8.679 = $20.6 Mil.
Accounts Receivable was $69.0 Mil.
Revenue was 73.252 + 73.747 + 167.798 + 155.402 = $470.2 Mil.
Gross Profit was -10.302 + -25.998 + 41.118 + 42.15 = $47.0 Mil.
Total Current Assets was $337.2 Mil.
Total Assets was $944.7 Mil.
Property, Plant and Equipment(Net PPE) was $574.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $54.2 Mil.
Selling, General & Admin. Expense(SGA) was $68.0 Mil.
Total Current Liabilities was $133.5 Mil.
Long-Term Debt was $0.0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(21.914 / 186.328) / (69.047 / 470.199)
=0.11760981 / 0.14684634
=0.8009

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)
=(46.968 / 470.199) / (-63.478 / 186.328)
=0.09988962 / -0.3406788
=-0.2932

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (211.344 + 517.159) / 742.678) / (1 - (337.197 + 574.466) / 944.699)
=0.01908633 / 0.03496987
=0.5458

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.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=186.328 / 470.199
=0.3963

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))
=(54.16 / (54.16 + 574.466)) / (51.899 / (51.899 + 517.159))
=0.08615616 / 0.0912016
=0.9447

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)
=(53.212 / 186.328) / (67.955 / 470.199)
=0.28558241 / 0.14452391
=1.976

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)
=((73.78 + 34.086) / 742.678) / ((0 + 133.501) / 944.699)
=0.14523926 / 0.14131591
=1.0278

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
=(-108.918 - -0.298 - 20.561) / 742.678
=-0.1739

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.

Carbo Ceramics Inc has a M-score of -5.06 suggests that the company will not be a manipulator.


Related Terms

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Carbo Ceramics Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04780.76560.991.02821.08620.94590.89351.17261.09020.85
GMI 1.06711.07781.0340.93220.95470.88271.20811.19731.0342-1.3928
AQI 0.91010.2260.97842.92820.84241.57630.65680.81640.90410.5349
SGI 1.12331.0571.29280.88151.38381.32261.03171.03390.97140.4312
DEPI 1.11650.86750.79681.0851.11260.90120.88171.05581.09940.8927
SGAI 0.82621.08640.99261.19720.94730.88230.99311.03281.10311.9917
LVGI 0.82930.86742.08850.41231.3521.24860.58881.02631.28481.8078
TATA 0.02870.00870.05440.0601-0.02110.0257-0.0619-0.0598-0.0531-0.2153
M-score -2.09-2.86-2.34-1.37-2.34-2.02-2.75-2.55-2.79-6.03

Carbo Ceramics Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.92541.05050.73541.09020.74810.77150.8790.852.1870.8009
GMI 1.10130.9670.991.03421.50853.0316516.987-1.3928-0.8594-0.2932
AQI 0.89760.85780.99040.90411.1121.08180.94130.53490.50350.5458
SGI 1.06081.14020.98260.97140.85820.68030.60550.43120.41660.3963
DEPI 1.13341.20161.1691.09941.03640.9360.92050.89270.89860.9447
SGAI 1.00121.01131.10511.10091.241.37871.47971.9971.91121.976
LVGI 1.0711.32970.9921.28481.70872.23381.84861.80781.02331.0278
TATA -0.0901-0.0734-0.0962-0.0537-0.1128-0.1469-0.1486-0.2148-0.1508-0.1739
M-score -2.91-2.81-3.19-2.79-3.32-3.03268.41-6.03-3.97-5.06
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