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Carbo Ceramics Inc (NYSE:CRR)
Beneish M-Score
-3.97 (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 -3.97 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: -3.97

-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 -2.44.


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 * 2.187+0.528 * -0.8594+0.404 * 0.5035+0.892 * 0.4166+0.115 * 0.8986
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.9069+4.679 * -0.1507-0.327 * 1.0233
=-3.97

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $62.6 Mil.
Revenue was 33.102 + 56.768 + 75.807 + 73.252 = $238.9 Mil.
Gross Profit was -23.641 + -15.228 + -4.597 + -10.302 = $-53.8 Mil.
Total Current Assets was $216.1 Mil.
Total Assets was $759.5 Mil.
Property, Plant and Equipment(Net PPE) was $528.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $53.8 Mil.
Selling, General & Admin. Expense(SGA) was $57.8 Mil.
Total Current Liabilities was $42.4 Mil.
Long-Term Debt was $52.7 Mil.
Net Income was -24.684 + -50.04 + -13.898 + -17.004 = $-105.6 Mil.
Non Operating Income was 0.076 + -0.318 + -0.064 + -0.004 = $-0.3 Mil.
Cash Flow from Operations was -8.295 + 2.448 + 8.679 + 6.335 = $9.2 Mil.
Accounts Receivable was $68.7 Mil.
Revenue was 73.747 + 167.798 + 155.402 + 176.561 = $573.5 Mil.
Gross Profit was -25.998 + 41.118 + 42.15 + 53.648 = $110.9 Mil.
Total Current Assets was $327.6 Mil.
Total Assets was $939.5 Mil.
Property, Plant and Equipment(Net PPE) was $575.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $52.1 Mil.
Selling, General & Admin. Expense(SGA) was $72.7 Mil.
Total Current Liabilities was $115.0 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)
=(62.607 / 238.929) / (68.713 / 573.508)
=0.26203182 / 0.11981176
=2.187

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)
=(110.918 / 573.508) / (-53.768 / 238.929)
=0.19340271 / -0.22503756
=-0.8594

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 - (216.07 + 528.616) / 759.523) / (1 - (327.585 + 575.478) / 939.513)
=0.01953463 / 0.0387967
=0.5035

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
=238.929 / 573.508
=0.4166

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))
=(52.051 / (52.051 + 575.478)) / (53.754 / (53.754 + 528.616))
=0.08294597 / 0.09230214
=0.8986

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)
=(57.793 / 238.929) / (72.748 / 573.508)
=0.24188357 / 0.1268474
=1.9069

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)
=((52.651 + 42.448) / 759.523) / ((0 + 114.958) / 939.513)
=0.12520885 / 0.12235914
=1.0233

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
=(-105.626 - -0.31 - 9.167) / 759.523
=-0.1507

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 -3.97 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.95280.74211.12321.02821.08620.94590.89351.17261.09020.85
GMI 1.05151.06151.06540.93220.95470.88271.20811.19731.0342-1.3928
AQI 0.91010.2260.97842.92820.84241.57630.65680.81640.90410.5349
SGI 1.23531.09041.13950.88151.38381.32261.03171.03390.97140.4312
DEPI 0.90820.87210.97441.0851.11260.90120.88171.05581.09940.8927
SGAI 0.99221.07810.83291.19720.94730.88230.99311.03281.10311.9917
LVGI 0.82930.86742.08850.41231.3521.24860.58881.02631.28481.8078
TATA 0.0053-0.01940.05440.0601-0.02110.0257-0.0619-0.0598-0.0531-0.2153
M-score -2.25-2.99-2.29-1.37-2.34-2.02-2.75-2.55-2.79-6.03

Carbo Ceramics Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.17260.92541.05050.73541.09020.74810.77150.8790.852.187
GMI 1.19731.10130.9670.991.03421.50853.0316516.987-1.3928-0.8594
AQI 0.81640.89760.85780.99040.90411.1121.08180.94130.53490.5035
SGI 1.03391.06081.14020.98260.97140.85820.68030.60550.43120.4166
DEPI 1.05581.13341.20161.1691.09941.03640.9360.92050.89270.8986
SGAI 1.03221.00121.01131.10511.10091.241.3761.47671.99281.9069
LVGI 1.02631.0711.32970.9921.28481.70872.23381.84861.80781.0233
TATA -0.0604-0.0901-0.0734-0.0962-0.0537-0.1128-0.1469-0.1486-0.2147-0.1507
M-score -2.55-2.91-2.81-3.19-2.79-3.32-3.03268.41-6.03-3.97
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