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Carbo Ceramics Inc (NYSE:CRR)
Beneish M-Score
-3.03 (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 -3.03 suggests that the company is not a manipulator.

CRR' s 10-Year Beneish M-Score Range
Min: -10000000   Max: -1.33
Current: -3.03

-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 -2.44.


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 * 0.7715+0.528 * 3.0316+0.404 * 1.0818+0.892 * 0.6803+0.115 * 0.936
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3754+4.679 * -0.1463-0.327 * 2.2338
=-3.03

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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 $67.8 Mil.
Total Current Liabilities was $133.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -17.004 + -28.602 + 0.399 + 13.744 = $-31.5 Mil.
Non Operating Income was -0.004 + -0.131 + -0.923 + 0.048 = $-1.0 Mil.
Cash Flow from Operations was 6.335 + 53.115 + 8.998 + 39.28 = $107.7 Mil.
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 $72.4 Mil.
Total Current Liabilities was $57.3 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)
=(69.047 / 470.199) / (131.551 / 691.121)
=0.14684634 / 0.19034438
=0.7715

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)
=(-25.998 / 691.121) / (-10.302 / 470.199)
=0.30282541 / 0.09988962
=3.0316

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 - (337.197 + 574.466) / 944.699) / (1 - (331.351 + 544.743) / 905.361)
=0.03496987 / 0.03232633
=1.0818

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
=470.199 / 691.121
=0.6803

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))
=(47.784 / (47.784 + 544.743)) / (54.16 / (54.16 + 574.466))
=0.08064443 / 0.08615616
=0.936

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)
=(67.792 / 470.199) / (72.448 / 691.121)
=0.14417725 / 0.1048268
=1.3754

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 + 133.501) / 944.699) / ((0 + 57.275) / 905.361)
=0.14131591 / 0.06326206
=2.2338

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
=(-31.463 - -1.01 - 107.728) / 944.699
=-0.1463

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 -3.03 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.15551.04780.76560.991.02821.08620.94590.89351.17261.0902
GMI 1.07111.06711.07781.0340.93220.95470.88271.20811.19731.0342
AQI 0.9060.91010.2260.97842.92820.84241.57630.65680.81640.9041
SGI 1.13281.12331.0571.29280.88151.38381.32261.03171.03390.9714
DEPI 1.25481.11650.86750.79681.0851.11260.90120.88171.05581.0994
SGAI 0.9330.82621.08640.99261.19720.94730.88230.99311.03281.1031
LVGI 1.04010.82930.86742.08850.41231.3521.24860.58881.02631.2848
TATA -0.0170.02870.00930.05440.0601-0.02110.0257-0.0619-0.0598-0.0531
M-score -2.27-2.09-2.86-2.34-1.37-2.34-2.02-2.75-2.55-2.79

Carbo Ceramics Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.98571.02841.3151.17260.92541.05050.73541.09020.74810.7715
GMI 1.28351.36011.28941.19731.10130.9670.991.03421.50853.0316
AQI 0.64820.64220.62860.81640.89760.85780.99040.90411.1121.0818
SGI 0.98740.91021.00991.03391.06081.14020.98260.97140.85820.6803
DEPI 0.87740.9230.99621.05581.13341.20161.1691.09941.03640.936
SGAI 1.0031.04351.01671.03221.00121.01131.10511.10091.23941.3754
LVGI 0.74050.73031.10211.02631.0711.32970.9921.28481.70872.2338
TATA -0.0612-0.0652-0.0523-0.0591-0.0887-0.0726-0.0953-0.0531-0.1122-0.1463
M-score -2.71-2.72-2.46-2.55-2.91-2.81-3.19-2.79-3.32-3.03
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