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Crown Crafts Inc (NAS:CRWS)
Beneish M-Score
-2.40 (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 -2.40 suggests that the company is not a manipulator.

CRWS' s 10-Year Beneish M-Score Range
Min: -5.43   Max: -1.89
Current: -2.4

-5.43
-1.89

During the past 13 years, the highest Beneish M-Score of Crown Crafts Inc was -1.89. The lowest was -5.43. And the median was -2.57.


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 * 0.9742+0.528 * 1.012+0.404 * 0.8444+0.892 * 1.0576+0.115 * 0.9653
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0299+4.679 * 0.0199-0.327 * 0.9321
=-2.40

* 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 $22.37 Mil.
Revenue was 26.09 + 23.743 + 20.441 + 15.704 = $85.98 Mil.
Gross Profit was 6.794 + 6.628 + 5.846 + 4.282 = $23.55 Mil.
Total Current Assets was $42.52 Mil.
Total Assets was $49.95 Mil.
Property, Plant and Equipment(Net PPE) was $0.53 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.06 Mil.
Selling, General & Admin. Expense(SGA) was $14.33 Mil.
Total Current Liabilities was $10.37 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 2.139 + 2.046 + 0.83 + 0.703 = $5.72 Mil.
Non Operating Income was -0.011 + -0.021 + -0.015 + 0.005 = $-0.04 Mil.
Cash Flow from Operations was 2.172 + -0.733 + -3.156 + 6.483 = $4.77 Mil.
Accounts Receivable was $21.71 Mil.
Revenue was 24.011 + 20.619 + 20.051 + 16.613 = $81.29 Mil.
Gross Profit was 6.359 + 5.954 + 5.727 + 4.494 = $22.53 Mil.
Total Current Assets was $38.07 Mil.
Total Assets was $46.22 Mil.
Property, Plant and Equipment(Net PPE) was $0.59 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.06 Mil.
Selling, General & Admin. Expense(SGA) was $13.16 Mil.
Total Current Liabilities was $10.30 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)
=(22.37 / 85.978) / (21.712 / 81.294)
=0.26018284 / 0.26707998
=0.9742

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)
=(6.628 / 81.294) / (6.794 / 85.978)
=0.27719143 / 0.27390728
=1.012

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 - (42.519 + 0.528) / 49.946) / (1 - (38.069 + 0.586) / 46.215)
=0.13812918 / 0.16358325
=0.8444

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
=85.978 / 81.294
=1.0576

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))
=(1.057 / (1.057 + 0.586)) / (1.055 / (1.055 + 0.528))
=0.64333536 / 0.6664561
=0.9653

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)
=(14.33 / 85.978) / (13.156 / 81.294)
=0.16667054 / 0.16183236
=1.0299

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 + 10.374) / 49.946) / ((0 + 10.298) / 46.215)
=0.20770432 / 0.22282809
=0.9321

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
=(5.718 - -0.042 - 4.766) / 49.946
=0.0199

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 -2.40 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.

Crown Crafts Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.08620.95221.3141.00990.96550.99011.14911.16290.96410.9742
GMI 0.86240.93581.0121.14830.92051.05260.97470.90880.90941.012
AQI 1.06111.06390.85120.31571.73850.96180.9330.91420.88120.8444
SGI 0.86560.99121.04031.16710.98481.04540.94810.91921.03671.0576
DEPI 0.94190.96710.37320.87640.97681.01351.05271.2530.89360.9653
SGAI 1.07591.02691.00570.87741.06321.03920.9661.11291.08711.0299
LVGI 0.82080.4621.94791.330.55620.93250.71131.15420.8670.9321
TATA 0.0034-0.16820.0211-0.4523-0.13650.0502-0.0727-0.08960.04620.0199
M-score -2.51-3.16-2.49-4.74-2.78-2.18-2.66-2.95-2.34-2.40

Crown Crafts Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.2811.16291.07961.21140.90650.96410.95880.07181.21850.9742
GMI 0.91410.90880.92590.88450.88260.90940.92080.96991.00151.012
AQI 0.95460.91420.92630.89970.80990.88120.84830.82250.85140.8444
SGI 0.90890.91920.90990.98921.01571.03671.03621.00541.03711.0576
DEPI 1.29851.2531.01480.9350.87530.89360.90610.9520.99560.9653
SGAI 1.10551.11271.12911.15361.1431.08711.071.05651.01871.0299
LVGI 1.11931.15421.17141.26351.09320.8671.04711.12040.94570.9321
TATA -0.0936-0.0896-0.07480.0234-0.01660.0462-0.02240.02940.1010.0199
M-score -2.83-2.94-2.98-2.41-2.84-2.34-2.73-3.33-1.82-2.40
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