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Crown Crafts Inc (NAS:CRWS)
Beneish M-Score
-3.33 (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 -3.33 suggests that the company is not a manipulator.

CRWS' s 10-Year Beneish M-Score Range
Min: -8.46   Max: -0.44
Current: -3.33

-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 -2.76.


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 * 0.0718+0.528 * 0.9699+0.404 * 0.8225+0.892 * 1.0054+0.115 * 0.952
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0565+4.679 * 0.0294-0.327 * 1.1204
=-3.33

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1.23 Mil.
Revenue was 20.441 + 15.704 + 24.011 + 20.619 = $80.78 Mil.
Gross Profit was 5.846 + 4.282 + 6.359 + 5.954 = $22.44 Mil.
Total Current Assets was $42.32 Mil.
Total Assets was $50.20 Mil.
Property, Plant and Equipment(Net PPE) was $0.55 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.07 Mil.
Selling, General & Admin. Expense(SGA) was $13.77 Mil.
Total Current Liabilities was $13.55 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.83 + 0.703 + 2.028 + 1.779 = $5.34 Mil.
Non Operating Income was -0.015 + 0.005 + -0.002 + 0.013 = $0.00 Mil.
Cash Flow from Operations was -3.156 + 6.483 + -2.318 + 2.854 = $3.86 Mil.
Accounts Receivable was $17.02 Mil.
Revenue was 20.051 + 16.613 + 23.611 + 20.07 = $80.35 Mil.
Gross Profit was 5.727 + 4.494 + 6.146 + 5.282 = $21.65 Mil.
Total Current Assets was $35.69 Mil.
Total Assets was $44.13 Mil.
Property, Plant and Equipment(Net PPE) was $0.61 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.03 Mil.
Selling, General & Admin. Expense(SGA) was $12.97 Mil.
Total Current Liabilities was $10.63 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)
=(1.229 / 80.775) / (17.015 / 80.345)
=0.0152151 / 0.21177422
=0.0718

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)
=(4.282 / 80.345) / (5.846 / 80.775)
=0.26945049 / 0.27782111
=0.9699

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 - (42.324 + 0.554) / 50.196) / (1 - (35.694 + 0.613) / 44.129)
=0.14578851 / 0.17725305
=0.8225

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
=80.775 / 80.345
=1.0054

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))
=(1.028 / (1.028 + 0.613)) / (1.066 / (1.066 + 0.554))
=0.62644729 / 0.65802469
=0.952

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)
=(13.773 / 80.775) / (12.967 / 80.345)
=0.17051068 / 0.1613915
=1.0565

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 + 13.546) / 50.196) / ((0 + 10.629) / 44.129)
=0.26986214 / 0.24086202
=1.1204

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
=(5.34 - 0.001 - 3.863) / 50.196
=0.0294

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 -3.33 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

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 0.91171.07591.02691.00570.87741.06321.03920.96441.11481.0871
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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.20371.06411.2811.16291.07961.21140.90650.96410.95880.0718
GMI 0.9160.8910.91410.90880.92590.88450.88260.90940.92080.9699
AQI 0.91460.9110.95460.91420.92630.89970.80990.88120.84830.8225
SGI 0.94420.92390.90890.91920.90990.98921.01571.03671.03621.0054
DEPI 1.24481.30191.29851.2531.01480.9350.87530.89360.90610.952
SGAI 0.99311.04821.10681.11481.13071.15461.14341.08711.071.0565
LVGI 0.7470.79291.11931.15421.17141.26351.09320.8671.04711.1204
TATA -0.0628-0.1153-0.0942-0.0903-0.07540.0234-0.01660.0462-0.02240.0294
M-score -2.60-3.03-2.83-2.95-2.99-2.41-2.84-2.34-2.73-3.33
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