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Carbo Ceramics Inc (NYSE:CRR)
Beneish M-Score
-2.91 (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 -2.91 suggests that the company is not a manipulator.

CRR' s 10-Year Beneish M-Score Range
Min: -10000000   Max: -1.33
Current: -2.91

-10000000
-1.33

During the past 13 years, the highest Beneish M-Score of Carbo Ceramics Inc was -1.33. The lowest was -10000000.00. And the median was -2.34.


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 * 0.9254+0.528 * 1.1013+0.404 * 0.8976+0.892 * 1.0608+0.115 * 1.1334
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0018+4.679 * -0.0892-0.327 * 1.071
=-2.91

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $107.0 Mil.
Revenue was 148.564 + 164.519 + 201.477 + 153.744 = $668.3 Mil.
Gross Profit was 44.364 + 48.518 + 62.759 + 39.333 = $195.0 Mil.
Total Current Assets was $348.3 Mil.
Total Assets was $882.7 Mil.
Property, Plant and Equipment(Net PPE) was $503.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.4 Mil.
Selling, General & Admin. Expense(SGA) was $68.4 Mil.
Total Current Liabilities was $63.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 18.427 + 20.855 + 30.148 + 16.307 = $85.7 Mil.
Non Operating Income was -0.079 + -0.078 + 0.013 + -0.03 = $-0.2 Mil.
Cash Flow from Operations was 44.109 + 66.334 + 34.524 + 19.686 = $164.7 Mil.
Accounts Receivable was $109.0 Mil.
Revenue was 147.657 + 153.622 + 151.134 + 177.614 = $630.0 Mil.
Gross Profit was 42.384 + 45.638 + 50.15 + 64.253 = $202.4 Mil.
Total Current Assets was $356.3 Mil.
Total Assets was $815.9 Mil.
Property, Plant and Equipment(Net PPE) was $427.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $46.2 Mil.
Selling, General & Admin. Expense(SGA) was $64.4 Mil.
Total Current Liabilities was $54.6 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)
=(107.036 / 668.304) / (109.036 / 630.027)
=0.16016065 / 0.1730656
=0.9254

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)
=(48.518 / 630.027) / (44.364 / 668.304)
=0.32129575 / 0.29174448
=1.1013

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 - (348.311 + 503.619) / 882.727) / (1 - (356.275 + 427.93) / 815.918)
=0.03488848 / 0.03886788
=0.8976

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
=668.304 / 630.027
=1.0608

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))
=(46.197 / (46.197 + 427.93)) / (47.367 / (47.367 + 503.619))
=0.09743592 / 0.0859677
=1.1334

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)
=(68.406 / 668.304) / (64.375 / 630.027)
=0.10235761 / 0.10217816
=1.0018

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 + 63.213) / 882.727) / ((0 + 54.554) / 815.918)
=0.07161104 / 0.06686211
=1.071

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
=(85.737 - -0.174 - 164.653) / 882.727
=-0.0892

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 -2.91 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 1.03251.15551.04780.76560.991.02821.08620.94590.89351.1726
GMI 1.02551.07111.06711.07781.0340.93220.95470.88271.20811.1973
AQI 0.79330.9060.91010.2260.97842.92820.84241.57630.65680.8164
SGI 1.31261.13281.12331.0571.29280.88151.38381.32261.03171.0339
DEPI 0.92411.25481.11650.86750.79681.0851.11260.90120.88171.0558
SGAI 0.7880.9330.82621.08640.99261.19720.94730.88230.99311.0328
LVGI 1.4041.04010.82930.86742.08850.41231.3521.24860.58881.0263
TATA -0.0728-0.0170.02870.00930.05440.0601-0.02110.0257-0.0619-0.0598
M-score -2.69-2.27-2.09-2.86-2.34-1.37-2.34-2.02-2.75-2.55

Carbo Ceramics Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.94590.81550.90960.93630.89350.98571.02841.3151.17260.9254
GMI 0.88270.94081.00241.10941.20811.28351.36011.28941.19731.1013
AQI 1.57631.7981.82161.8090.65680.64820.64220.62860.81640.8976
SGI 1.32261.27491.23651.10711.03170.98740.91021.00991.03391.0608
DEPI 0.90120.89070.87830.86740.88170.87740.9230.99621.05581.1334
SGAI 0.88230.94190.92980.95350.99311.0031.04351.01651.03281.0018
LVGI 1.24860.89820.83130.72650.58880.74050.73031.10211.02631.071
TATA 0.02570.0310.0162-0.0153-0.0604-0.0612-0.0654-0.0523-0.0597-0.0892
M-score -2.02-1.94-1.89-2.05-2.74-2.71-2.72-2.46-2.55-2.91
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