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Carbo Ceramics Inc (NYSE:CRR)
Beneish M-Score
-2.81 (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 -2.81 suggests that the company is not a manipulator.

CRR' s 10-Year Beneish M-Score Range
Min: -10000000   Max: -1.32
Current: -2.81

-10000000
-1.32

During the past 13 years, the highest Beneish M-Score of Carbo Ceramics Inc was -1.32. The lowest was -10000000.00. And the median was -2.43.


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 * 1.0505+0.528 * 0.967+0.404 * 0.8578+0.892 * 1.1402+0.115 * 1.2016
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0128+4.679 * -0.0724-0.327 * 1.3297
=-2.81

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $131.6 Mil.
Revenue was 176.561 + 148.564 + 164.519 + 201.477 = $691.1 Mil.
Gross Profit was 53.648 + 44.364 + 48.518 + 62.759 = $209.3 Mil.
Total Current Assets was $331.4 Mil.
Total Assets was $905.4 Mil.
Property, Plant and Equipment(Net PPE) was $544.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.8 Mil.
Selling, General & Admin. Expense(SGA) was $72.5 Mil.
Total Current Liabilities was $57.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 23.017 + 18.427 + 20.855 + 30.148 = $92.4 Mil.
Non Operating Income was -0.2 + -0.079 + -0.078 + 0.013 = $-0.3 Mil.
Cash Flow from Operations was 13.395 + 44.109 + 66.334 + 34.524 = $158.4 Mil.
Accounts Receivable was $109.8 Mil.
Revenue was 153.744 + 147.657 + 153.622 + 151.134 = $606.2 Mil.
Gross Profit was 39.333 + 42.384 + 45.638 + 50.15 = $177.5 Mil.
Total Current Assets was $350.1 Mil.
Total Assets was $814.0 Mil.
Property, Plant and Equipment(Net PPE) was $433.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $46.5 Mil.
Selling, General & Admin. Expense(SGA) was $62.8 Mil.
Total Current Liabilities was $38.7 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)
=(131.551 / 691.121) / (109.828 / 606.157)
=0.19034438 / 0.18118738
=1.0505

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)
=(44.364 / 606.157) / (53.648 / 691.121)
=0.29283667 / 0.30282541
=0.967

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 - (331.351 + 544.743) / 905.361) / (1 - (350.058 + 433.241) / 813.972)
=0.03232633 / 0.03768311
=0.8578

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
=691.121 / 606.157
=1.1402

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))
=(46.486 / (46.486 + 433.241)) / (47.784 / (47.784 + 544.743))
=0.09690095 / 0.08064443
=1.2016

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)
=(72.488 / 691.121) / (62.775 / 606.157)
=0.10488467 / 0.10356228
=1.0128

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)
=((0 + 57.275) / 905.361) / ((0 + 38.727) / 813.972)
=0.06326206 / 0.0475778
=1.3297

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
=(92.447 - -0.344 - 158.362) / 905.361
=-0.0724

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 -2.81 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.03251.15550.95280.99640.83651.02821.08620.94590.89351.1726
GMI 1.02551.07111.05151.06151.06540.93220.95470.88271.20811.1973
AQI 0.79330.9060.91011.01730.21642.9410.84241.57630.65680.8164
SGI 1.31261.13281.23531.09041.13950.88151.38381.32261.03171.0339
DEPI 0.92411.25480.90820.94290.90121.0851.11260.90120.88171.0558
SGAI 0.7880.9330.99221.07810.83291.19720.94730.88230.99311.0328
LVGI 1.4041.04010.82930.86742.07940.41411.3521.24860.58881.0263
TATA -0.0728-0.0170.0053-0.01880.05710.0601-0.02110.0257-0.0619-0.0598
M-score -2.69-2.27-2.25-2.43-2.86-1.36-2.34-2.02-2.75-2.55

Carbo Ceramics Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.81550.90960.93630.89350.98571.02841.3151.17260.92541.0505
GMI 0.94081.00241.10941.20811.28351.36011.28941.19731.10130.967
AQI 1.7981.82161.8090.65680.64820.64220.62860.81640.89760.8578
SGI 1.27491.23651.10711.03170.98740.91021.00991.03391.06081.1402
DEPI 0.89070.87830.86740.88170.87740.9230.99621.05581.13341.2016
SGAI 0.94180.93070.95690.99311.00321.04171.01611.03281.00171.0128
LVGI 0.89820.83130.72650.58880.74050.73031.10211.02631.0711.3297
TATA 0.0310.0146-0.0169-0.0619-0.0627-0.0652-0.0521-0.0595-0.089-0.0724
M-score -1.94-1.90-2.06-2.75-2.72-2.72-2.46-2.55-2.91-2.81
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