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Carbo Ceramics Inc (NYSE:CRR)
Beneish M-Score
-3.19 (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 -3.19 suggests that the company is not a manipulator.

CRR' s 10-Year Beneish M-Score Range
Min: -10000000   Max: -1.32
Current: -3.19

-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 * 0.7354+0.528 * 0.99+0.404 * 0.9904+0.892 * 0.9826+0.115 * 1.169
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1053+4.679 * -0.0947-0.327 * 0.992
=-3.19

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $112.8 Mil.
Revenue was 155.402 + 176.561 + 148.564 + 164.519 = $645.0 Mil.
Gross Profit was 42.15 + 53.648 + 44.364 + 48.518 = $188.7 Mil.
Total Current Assets was $310.8 Mil.
Total Assets was $909.5 Mil.
Property, Plant and Equipment(Net PPE) was $567.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $49.4 Mil.
Selling, General & Admin. Expense(SGA) was $72.0 Mil.
Total Current Liabilities was $69.0 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 13.744 + 23.017 + 18.427 + 20.855 = $76.0 Mil.
Non Operating Income was 0.048 + -0.2 + -0.079 + -0.694 = $-0.9 Mil.
Cash Flow from Operations was 39.28 + 13.395 + 44.109 + 66.334 = $163.1 Mil.
Accounts Receivable was $156.1 Mil.
Revenue was 201.477 + 153.744 + 147.657 + 153.622 = $656.5 Mil.
Gross Profit was 62.759 + 39.333 + 42.384 + 45.638 = $190.1 Mil.
Total Current Assets was $378.3 Mil.
Total Assets was $860.6 Mil.
Property, Plant and Equipment(Net PPE) was $452.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $46.7 Mil.
Selling, General & Admin. Expense(SGA) was $66.3 Mil.
Total Current Liabilities was $65.8 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)
=(112.825 / 645.046) / (156.138 / 656.5)
=0.17491001 / 0.23783397
=0.7354

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)
=(53.648 / 656.5) / (42.15 / 645.046)
=0.2895872 / 0.29250627
=0.99

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 - (310.765 + 567.098) / 909.517) / (1 - (378.262 + 452.052) / 860.554)
=0.03480309 / 0.03514015
=0.9904

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
=645.046 / 656.5
=0.9826

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))
=(46.706 / (46.706 + 452.052)) / (49.385 / (49.385 + 567.098))
=0.09364461 / 0.08010764
=1.169

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)
=(71.957 / 645.046) / (66.26 / 656.5)
=0.11155328 / 0.10092917
=1.1053

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 + 68.997) / 909.517) / ((0 + 65.81) / 860.554)
=0.07586114 / 0.07647399
=0.992

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
=(76.043 - -0.925 - 163.118) / 909.517
=-0.0947

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 -3.19 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.90960.93630.89350.98571.02841.3151.17260.92541.05050.7354
GMI 1.00241.10941.20811.28351.36011.28941.19731.10130.9670.99
AQI 1.82161.8090.65680.64820.64220.62860.81640.89760.85780.9904
SGI 1.23651.10711.03170.98740.91021.00991.03391.06081.14020.9826
DEPI 0.87830.86740.88170.87740.9230.99621.05581.13341.20161.169
SGAI 0.93070.95690.99311.00321.04171.01631.03221.00111.01221.1053
LVGI 0.83130.72650.58880.74050.73031.10211.02631.0711.32970.992
TATA 0.0146-0.0169-0.0619-0.0627-0.0652-0.0523-0.0591-0.0885-0.072-0.0947
M-score -1.90-2.06-2.75-2.72-2.72-2.46-2.55-2.90-2.81-3.19
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