Switch to:
Carbo Ceramics Inc (NYSE:CRR)
Beneish M-Score
-4.74 (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 -4.74 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: -4.74

-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 -2.46.


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 * 0.9678+0.528 * -0.0009+0.404 * 0.4917+0.892 * 0.3348+0.115 * 0.9657
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.235+4.679 * -0.149-0.327 * 0.9712
=-4.74

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $19.5 Mil.
Revenue was 20.241 + 20.651 + 33.102 + 56.768 = $130.8 Mil.
Gross Profit was -20.865 + -20.012 + -23.641 + -15.228 = $-79.7 Mil.
Total Current Assets was $235.4 Mil.
Total Assets was $753.0 Mil.
Property, Plant and Equipment(Net PPE) was $505.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $50.1 Mil.
Selling, General & Admin. Expense(SGA) was $48.2 Mil.
Total Current Liabilities was $32.0 Mil.
Long-Term Debt was $70.6 Mil.
Net Income was -19.95 + -20.296 + -24.684 + -50.04 = $-115.0 Mil.
Non Operating Income was 0.05 + 0.008 + 0.076 + -0.082 = $0.1 Mil.
Cash Flow from Operations was -14.719 + 17.729 + -8.295 + 2.448 = $-2.8 Mil.
Accounts Receivable was $60.1 Mil.
Revenue was 75.807 + 73.252 + 73.747 + 167.798 = $390.6 Mil.
Gross Profit was -4.597 + -10.302 + -25.998 + 41.118 = $0.2 Mil.
Total Current Assets was $309.7 Mil.
Total Assets was $913.3 Mil.
Property, Plant and Equipment(Net PPE) was $573.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $54.7 Mil.
Selling, General & Admin. Expense(SGA) was $64.5 Mil.
Total Current Liabilities was $128.1 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)
=(19.457 / 130.762) / (60.053 / 390.604)
=0.14879705 / 0.15374395
=0.9678

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)
=(0.221 / 390.604) / (-79.746 / 130.762)
=0.00056579 / -0.60985607
=-0.0009

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 - (235.388 + 505.456) / 752.974) / (1 - (309.664 + 573.761) / 913.348)
=0.01610945 / 0.03276188
=0.4917

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
=130.762 / 390.604
=0.3348

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))
=(54.694 / (54.694 + 573.761)) / (50.063 / (50.063 + 505.456))
=0.0870293 / 0.09011933
=0.9657

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)
=(48.243 / 130.762) / (64.477 / 390.604)
=0.36893746 / 0.16506999
=2.235

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)
=((70.592 + 31.96) / 752.974) / ((0 + 128.085) / 913.348)
=0.13619594 / 0.1402368
=0.9712

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
=(-114.97 - 0.052 - -2.837) / 752.974
=-0.149

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 -4.74 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.05050.73541.09020.74810.77150.8790.852.1870.80090.9678
GMI 0.9670.991.03421.50853.0316516.987-1.3928-0.8594-0.2932-0.0009
AQI 0.85780.99040.90411.1121.08180.94130.53490.50350.54580.4917
SGI 1.14020.98260.97140.85820.68030.60550.43120.41660.39630.3348
DEPI 1.20161.1691.09941.03640.9360.92050.89270.89860.94470.9657
SGAI 1.01131.10511.10091.241.37871.47971.9971.91121.9762.235
LVGI 1.32970.9921.28481.70872.23381.84861.80781.02331.02780.9712
TATA -0.0734-0.0962-0.0537-0.1128-0.1469-0.1488-0.2153-0.1513-0.1745-0.149
M-score -2.81-3.19-2.79-3.32-3.03268.41-6.03-3.97-5.07-4.74
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK