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Carbo Ceramics Inc (NYSE:CRR)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

CRR' s 10-Year Beneish M-Score Range
Min: -3.03   Max: -1.33
Current: -2.79

-3.03
-1.33

During the past 13 years, the highest Beneish M-Score of Carbo Ceramics Inc was -1.33. The lowest was -3.03. And the median was -2.35.


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 * 1.0902+0.528 * 1.0342+0.404 * 0.9041+0.892 * 0.9714+0.115 * 1.0994
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1002+4.679 * -0.0525-0.327 * 1.2848
=-2.79

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $132.6 Mil.
Revenue was 167.798 + 155.402 + 176.561 + 148.564 = $648.3 Mil.
Gross Profit was 41.118 + 42.15 + 53.648 + 44.364 = $181.3 Mil.
Total Current Assets was $337.6 Mil.
Total Assets was $934.2 Mil.
Property, Plant and Equipment(Net PPE) was $568.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $50.9 Mil.
Selling, General & Admin. Expense(SGA) was $73.2 Mil.
Total Current Liabilities was $77.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 0.399 + 13.744 + 23.017 + 18.427 = $55.6 Mil.
Non Operating Income was -0.923 + 0.048 + -0.2 + -0.079 = $-1.2 Mil.
Cash Flow from Operations was 8.998 + 39.28 + 13.395 + 44.109 = $105.8 Mil.
Accounts Receivable was $125.2 Mil.
Revenue was 164.519 + 201.477 + 153.744 + 147.657 = $667.4 Mil.
Gross Profit was 48.518 + 62.759 + 39.333 + 42.384 = $193.0 Mil.
Total Current Assets was $371.4 Mil.
Total Assets was $879.0 Mil.
Property, Plant and Equipment(Net PPE) was $478.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $47.5 Mil.
Selling, General & Admin. Expense(SGA) was $68.4 Mil.
Total Current Liabilities was $56.7 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)
=(132.573 / 648.325) / (125.179 / 667.397)
=0.2044854 / 0.18756302
=1.0902

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)
=(42.15 / 667.397) / (41.118 / 648.325)
=0.28917421 / 0.27961285
=1.0342

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 - (337.611 + 568.716) / 934.226) / (1 - (371.382 + 478.535) / 878.951)
=0.02986322 / 0.03303256
=0.9041

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
=648.325 / 667.397
=0.9714

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))
=(47.472 / (47.472 + 478.535)) / (50.86 / (50.86 + 568.716))
=0.09024975 / 0.0820884
=1.0994

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)
=(73.154 / 648.325) / (68.446 / 667.397)
=0.11283538 / 0.10255665
=1.1002

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 + 77.415) / 934.226) / ((0 + 56.688) / 878.951)
=0.08286539 / 0.06449506
=1.2848

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
=(55.587 - -1.154 - 105.782) / 934.226
=-0.0525

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 -2.79 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.93630.89350.98571.02841.3151.17260.92541.05050.73541.0902
GMI 1.10941.20811.28351.36011.28941.19731.10130.9670.991.0342
AQI 1.8090.65680.64820.64220.62860.81640.89760.85780.99040.9041
SGI 1.10711.03170.98740.91021.00991.03391.06081.14020.98260.9714
DEPI 0.86740.88170.87740.9230.99621.05581.13341.20161.1691.0994
SGAI 0.95690.99311.00321.04171.01611.03281.00171.01281.10641.1002
LVGI 0.72650.58880.74050.73031.10211.02631.0711.32970.9921.2848
TATA -0.0169-0.0619-0.0627-0.0654-0.0523-0.0597-0.0892-0.0724-0.0954-0.0525
M-score -2.06-2.75-2.72-2.72-2.46-2.55-2.91-2.81-3.19-2.79
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