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Crown Crafts Inc (NAS:CRWS)
Beneish M-Score
-1.82 (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.

Crown Crafts Inc has a M-score of -1.82 signals that the company is a manipulator.

CRWS' s 10-Year Beneish M-Score Range
Min: -8.46   Max: -0.44
Current: -1.82

-8.46
-0.44

During the past 13 years, the highest Beneish M-Score of Crown Crafts Inc was -0.44. The lowest was -8.46. And the median was -2.75.


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 Crown Crafts 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 * 1.2185+0.528 * 1.0015+0.404 * 0.8514+0.892 * 1.0371+0.115 * 0.9956
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0187+4.679 * 0.101-0.327 * 0.9457
=-1.82

* 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 $21.83 Mil.
Revenue was 23.743 + 20.441 + 15.704 + 24.011 = $83.90 Mil.
Gross Profit was 6.628 + 5.846 + 4.282 + 6.359 = $23.12 Mil.
Total Current Assets was $45.50 Mil.
Total Assets was $53.10 Mil.
Property, Plant and Equipment(Net PPE) was $0.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.06 Mil.
Selling, General & Admin. Expense(SGA) was $14.03 Mil.
Total Current Liabilities was $15.06 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 2.046 + 0.83 + 0.703 + 2.028 = $5.61 Mil.
Non Operating Income was -0.021 + -0.015 + 0.005 + -0.002 = $-0.03 Mil.
Cash Flow from Operations was -0.733 + -3.156 + 6.483 + -2.318 = $0.28 Mil.
Accounts Receivable was $17.27 Mil.
Revenue was 20.619 + 20.051 + 16.613 + 23.611 = $80.89 Mil.
Gross Profit was 5.954 + 5.727 + 4.494 + 6.146 = $22.32 Mil.
Total Current Assets was $41.15 Mil.
Total Assets was $49.40 Mil.
Property, Plant and Equipment(Net PPE) was $0.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.04 Mil.
Selling, General & Admin. Expense(SGA) was $13.28 Mil.
Total Current Liabilities was $14.82 Mil.
Long-Term Debt was $0.00 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)
=(21.831 / 83.899) / (17.274 / 80.894)
=0.26020572 / 0.2135387
=1.2185

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)
=(5.846 / 80.894) / (6.628 / 83.899)
=0.27592899 / 0.27550984
=1.0015

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 - (45.501 + 0.578) / 53.099) / (1 - (41.152 + 0.577) / 49.4)
=0.13220588 / 0.1552834
=0.8514

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
=83.899 / 80.894
=1.0371

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))
=(1.044 / (1.044 + 0.577)) / (1.059 / (1.059 + 0.578))
=0.64404688 / 0.64691509
=0.9956

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)
=(14.034 / 83.899) / (13.283 / 80.894)
=0.16727255 / 0.16420254
=1.0187

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 + 15.059) / 53.099) / ((0 + 14.815) / 49.4)
=0.28360233 / 0.29989879
=0.9457

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
=(5.607 - -0.033 - 0.276) / 53.099
=0.101

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.

Crown Crafts Inc has a M-score of -1.82 signals that the company is likely to 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.

Crown Crafts Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 0.8381.08620.95221.3141.00990.96550.99011.14911.16290.9641
GMI 1.11990.86240.93581.0121.14830.92051.05260.97470.90880.9094
AQI 1.07761.06111.06390.85120.31571.73850.96180.9330.91420.8812
SGI 0.97310.86560.99121.04031.16710.98481.04540.94810.91921.0367
DEPI 1.00520.94190.96710.37320.87640.97681.01351.05271.2530.8936
SGAI 0.91171.07591.02691.00570.87741.06321.03920.9661.11291.0871
LVGI 0.89780.82080.4621.94791.330.55620.93250.71131.15420.867
TATA -0.07080.0034-0.16820.0211-0.4523-0.13650.0502-0.0727-0.08960.0462
M-score -2.84-2.51-3.16-2.49-4.74-2.78-2.18-2.66-2.95-2.34

Crown Crafts Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.06411.2811.16291.07961.21140.90650.96410.95880.07181.2185
GMI 0.8910.91410.90880.92590.88450.88260.90940.92080.96991.0015
AQI 0.9110.95460.91420.92630.89970.80990.88120.84830.82250.8514
SGI 0.92390.90890.91920.90990.98921.01571.03671.03621.00541.0371
DEPI 1.30191.29851.2531.01480.9350.87530.89360.90610.9520.9956
SGAI 1.04811.10551.11271.12911.15361.1431.08711.071.05651.0187
LVGI 0.79291.11931.15421.17141.26351.09320.8671.04711.12040.9457
TATA -0.1146-0.0936-0.0896-0.07480.0234-0.01660.0462-0.02240.02940.101
M-score -3.02-2.83-2.94-2.98-2.41-2.84-2.34-2.73-3.33-1.82
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