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Crown Crafts Inc (NAS:CRWS)
Beneish M-Score
-3.02 (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 -3.02 suggests that the company is not a manipulator.

CRWS' s Beneish M-Score Range Over the Past 10 Years
Min: -8.46   Max: 8.82
Current: -3.02

-8.46
8.82

During the past 13 years, the highest Beneish M-Score of Crown Crafts Inc was 8.82. 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 * 0.8188+0.528 * 0.9993+0.404 * 0.8919+0.892 * 1.0174+0.115 * 0.9481
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9004+4.679 * -0.0905-0.327 * 0.793
=-3.02

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $18.19 Mil.
Revenue was 20.691 + 20.716 + 17.858 + 26.09 = $85.36 Mil.
Gross Profit was 6.252 + 5.706 + 4.781 + 6.794 = $23.53 Mil.
Total Current Assets was $46.96 Mil.
Total Assets was $53.80 Mil.
Property, Plant and Equipment(Net PPE) was $0.49 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.06 Mil.
Selling, General & Admin. Expense(SGA) was $12.86 Mil.
Total Current Liabilities was $12.10 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 2.143 + 1.565 + 0.927 + 2.139 = $6.77 Mil.
Non Operating Income was -0.054 + 0.004 + 0.005 + -0.011 = $-0.06 Mil.
Cash Flow from Operations was 2.276 + -0.445 + 7.696 + 2.172 = $11.70 Mil.
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.



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)
=(18.186 / 85.355) / (21.831 / 83.899)
=0.21306309 / 0.26020572
=0.8188

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)
=(5.706 / 83.899) / (6.252 / 85.355)
=0.27550984 / 0.27570734
=0.9993

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 - (46.963 + 0.493) / 53.8) / (1 - (45.501 + 0.578) / 53.099)
=0.11791822 / 0.13220588
=0.8919

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
=85.355 / 83.899
=1.0174

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))
=(1.059 / (1.059 + 0.578)) / (1.059 / (1.059 + 0.493))
=0.64691509 / 0.68234536
=0.9481

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)
=(12.856 / 85.355) / (14.034 / 83.899)
=0.15061801 / 0.16727255
=0.9004

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 + 12.099) / 53.8) / ((0 + 15.059) / 53.099)
=0.22488848 / 0.28360233
=0.793

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
=(6.774 - -0.056 - 11.699) / 53.8
=-0.0905

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 -3.02 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.21140.90650.96410.95880.07181.21850.97421.003313.32070.8188
GMI 0.88450.88260.90940.92080.96991.00151.0121.01761.02730.9993
AQI 0.89970.80990.88120.84830.82250.85140.84440.8280.87750.8919
SGI 0.98921.01571.03671.03621.00541.03711.05761.09641.09451.0174
DEPI 0.9350.87530.89360.90610.9520.99560.96530.98060.98140.9481
SGAI 1.15361.1431.08711.071.05651.01871.02991.0010.86440.9004
LVGI 1.26351.09320.8671.04711.12040.94570.93210.94780.77240.793
TATA 0.0234-0.01660.0462-0.02240.02940.1010.01990.0001-0.0394-0.0905
M-score -2.41-2.84-2.34-2.73-3.33-1.82-2.40-2.448.82-3.02
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