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Crown Crafts Inc (NAS:CRWS)
Beneish M-Score
-2.34 (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 -2.34 suggests that the company is not a manipulator.

CRWS' s 10-Year Beneish M-Score Range
Min: -5.41   Max: -1.89
Current: -2.34

-5.41
-1.89

During the past 13 years, the highest Beneish M-Score of Crown Crafts Inc was -1.89. The lowest was -5.41. And the median was -2.63.


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 * 0.9641+0.528 * 0.9094+0.404 * 0.8812+0.892 * 1.0367+0.115 * 0.8936
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0871+4.679 * 0.0462-0.327 * 0.867
=-2.34

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
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.
Net Income was 2.028 + 1.779 + 1.142 + 0.822 = $5.77 Mil.
Non Operating Income was -0.002 + 0.013 + -0.012 + -0.003 = $-0.00 Mil.
Cash Flow from Operations was -2.318 + 2.854 + -0.272 + 3.375 = $3.64 Mil.
Accounts Receivable was $21.72 Mil.
Revenue was 23.611 + 20.07 + 17.282 + 17.453 = $78.42 Mil.
Gross Profit was 6.146 + 5.282 + 3.914 + 4.425 = $19.77 Mil.
Total Current Assets was $35.23 Mil.
Total Assets was $44.16 Mil.
Property, Plant and Equipment(Net PPE) was $0.74 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.00 Mil.
Selling, General & Admin. Expense(SGA) was $11.67 Mil.
Total Current Liabilities was $11.35 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)
=(21.712 / 81.294) / (21.724 / 78.416)
=0.26707998 / 0.2770353
=0.9641

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)
=(5.954 / 78.416) / (6.359 / 81.294)
=0.25207866 / 0.27719143
=0.9094

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 - (38.069 + 0.586) / 46.215) / (1 - (35.227 + 0.738) / 44.163)
=0.16358325 / 0.18563051
=0.8812

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
=81.294 / 78.416
=1.0367

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))
=(0.998 / (0.998 + 0.738)) / (1.057 / (1.057 + 0.586))
=0.57488479 / 0.64333536
=0.8936

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)
=(13.156 / 81.294) / (11.674 / 78.416)
=0.16183236 / 0.14887268
=1.0871

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 + 10.298) / 46.215) / ((0 + 11.351) / 44.163)
=0.22282809 / 0.25702511
=0.867

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
=(5.771 - -0.004 - 3.639) / 46.215
=0.0462

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 -2.34 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 0.85741.16250.89921.36360.88850.96550.99011.14911.16290.9641
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 -2.82-2.44-3.21-2.45-4.85-2.78-2.18-2.66-2.95-2.34

Crown Crafts Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.01081.14911.20371.06411.25641.16291.07961.21140.90650.9641
GMI 1.08580.97470.9160.8910.91410.90880.92590.88450.88260.9094
AQI 0.96920.9330.91460.9110.95460.91420.92630.89970.80990.8812
SGI 0.98690.94810.94420.92390.90890.91920.90990.98921.01571.0367
DEPI 1.03271.05271.24481.30191.29851.2531.01480.9350.87530.8936
SGAI 0.92870.96610.9941.04811.10551.11271.12911.15361.1431.0871
LVGI 0.6230.71130.7470.79291.11931.15421.17141.26351.09320.867
TATA -0.1052-0.0727-0.0627-0.1146-0.0936-0.0896-0.07480.0234-0.01660.0462
M-score -2.80-2.66-2.60-3.02-2.85-2.94-2.98-2.41-2.84-2.34
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