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Carbo Ceramics Inc (NYSE:CRR)
Beneish M-Score
-3.32 (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 -3.32 suggests that the company is not a manipulator.

CRR' s 10-Year Beneish M-Score Range
Min: -10000000   Max: -1.33
Current: -3.32

-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 -2.40.


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 * 0.7481+0.528 * 1.5085+0.404 * 1.112+0.892 * 0.8582+0.115 * 1.0364
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2394+4.679 * -0.1118-0.327 * 1.7087
=-3.32

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was -28.602 + 0.399 + 13.744 + 23.017 = $8.6 Mil.
Non Operating Income was -0.131 + -0.923 + 0.048 + -0.2 = $-1.2 Mil.
Cash Flow from Operations was 53.115 + 8.998 + 39.28 + 13.395 = $114.8 Mil.
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.



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)
=(68.713 / 573.508) / (107.036 / 668.304)
=0.11981176 / 0.16016065
=0.7481

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)
=(41.118 / 668.304) / (-25.998 / 573.508)
=0.29174448 / 0.19340271
=1.5085

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 - (327.585 + 575.478) / 939.513) / (1 - (348.311 + 503.619) / 882.727)
=0.0387967 / 0.03488848
=1.112

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
=573.508 / 668.304
=0.8582

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))
=(47.367 / (47.367 + 503.619)) / (52.051 / (52.051 + 575.478))
=0.0859677 / 0.08294597
=1.0364

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)
=(72.716 / 573.508) / (68.366 / 668.304)
=0.12679161 / 0.10229776
=1.2394

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 + 114.958) / 939.513) / ((0 + 63.213) / 882.727)
=0.12235914 / 0.07161104
=1.7087

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
=(8.558 - -1.206 - 114.788) / 939.513
=-0.1118

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 -3.32 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.89350.98571.02841.3151.17260.92541.05050.73541.09020.7481
GMI 1.20811.28351.36011.28941.19731.10130.9670.991.03421.5085
AQI 0.65680.64820.64220.62860.81640.89760.85780.99040.90411.112
SGI 1.03170.98740.91021.00991.03391.06081.14020.98260.97140.8582
DEPI 0.88170.87740.9230.99621.05581.13341.20161.1691.09941.0364
SGAI 0.99311.0031.04351.01671.03221.00121.01131.10511.10091.2394
LVGI 0.58880.74050.73031.10211.02631.0711.32970.9921.28481.7087
TATA -0.0604-0.0612-0.0652-0.0523-0.0591-0.0887-0.0721-0.0949-0.0527-0.1118
M-score -2.74-2.71-2.72-2.46-2.55-2.91-2.81-3.19-2.79-3.32
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