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CSS Industries Inc (NYSE:CSS)
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.

CSS Industries Inc has a M-score of -2.34 suggests that the company is not a manipulator.

CSS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.75   Max: -1.36
Current: -2.34

-3.75
-1.36

During the past 13 years, the highest Beneish M-Score of CSS Industries Inc was -1.36. The lowest was -3.75. And the median was -2.72.


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 CSS Industries 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 * 0.9834+0.528 * 1.0407+0.404 * 1.2925+0.892 * 0.9794+0.115 * 1.0032
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.039+4.679 * 0.0047-0.327 * 0.9416
=-2.34

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $91.6 Mil.
Revenue was 101.291 + 45.318 + 56.744 + 104.568 = $307.9 Mil.
Gross Profit was 31.6 + 12.297 + 16.85 + 35.188 = $95.9 Mil.
Total Current Assets was $228.3 Mil.
Total Assets was $325.3 Mil.
Property, Plant and Equipment(Net PPE) was $27.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.5 Mil.
Selling, General & Admin. Expense(SGA) was $77.1 Mil.
Total Current Liabilities was $48.9 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 6.992 + -3.286 + -0.589 + 9.664 = $12.8 Mil.
Non Operating Income was 0.387 + 0.091 + 0.296 + 0.009 = $0.8 Mil.
Cash Flow from Operations was -21.232 + -20.794 + 16.496 + 35.988 = $10.5 Mil.
Accounts Receivable was $95.1 Mil.
Revenue was 111.477 + 44.228 + 53.702 + 104.993 = $314.4 Mil.
Gross Profit was 37.791 + 12.442 + 15.383 + 36.323 = $101.9 Mil.
Total Current Assets was $242.3 Mil.
Total Assets was $321.4 Mil.
Property, Plant and Equipment(Net PPE) was $25.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.1 Mil.
Selling, General & Admin. Expense(SGA) was $75.8 Mil.
Total Current Liabilities was $51.3 Mil.
Long-Term Debt was $0.0 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)
=(91.577 / 307.921) / (95.08 / 314.4)
=0.2974042 / 0.3024173
=0.9834

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)
=(101.939 / 314.4) / (95.935 / 307.921)
=0.32423346 / 0.31155719
=1.0407

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 - (228.26 + 27.204) / 325.321) / (1 - (242.258 + 25.769) / 321.427)
=0.21473253 / 0.16613415
=1.2925

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
=307.921 / 314.4
=0.9794

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))
=(8.063 / (8.063 + 25.769)) / (8.476 / (8.476 + 27.204))
=0.23832466 / 0.23755605
=1.0032

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)
=(77.142 / 307.921) / (75.81 / 314.4)
=0.2505253 / 0.24112595
=1.039

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 + 48.856) / 325.321) / ((0 + 51.267) / 321.427)
=0.15017782 / 0.15949811
=0.9416

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
=(12.781 - 0.783 - 10.458) / 325.321
=0.0047

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.

CSS Industries 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 local exchange's currency.

CSS Industries Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 1.03441.12171.15411.12421.08971.05381.01181.16570.9731.0601
GMI 0.93040.93271.05441.06160.82581.03080.96730.93050.99081.0071
AQI 0.98472.35521.12160.67791.04190.88330.91630.91221.18851.2231
SGI 1.00990.93890.96820.92960.85551.00260.94680.87990.97691.0127
DEPI 0.86770.94561.0690.93040.92751.06680.98470.980.92331.0048
SGAI 1.05471.07151.0331.0641.05320.99160.99361.06011.02181.0004
LVGI 0.8010.96470.78650.93441.00310.85440.90450.8811.04950.9643
TATA -0.0943-0.0493-0.0418-0.2637-0.0868-0.0342-0.0303-0.0307-0.05180.0058
M-score -2.88-2.15-2.41-3.76-3.03-2.56-2.68-2.62-2.73-2.28

CSS Industries Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.14961.00910.96960.9730.88550.97770.93211.06011.13260.9834
GMI 0.94540.960.97160.99080.99710.99771.01231.00711.00341.0407
AQI 0.9610.92170.95091.18851.17241.11641.10191.22311.20891.2925
SGI 0.91820.95740.98240.97690.96090.99741.00021.01271.02940.9794
DEPI 0.9620.94090.93140.92330.9230.9520.97861.00481.00251.0032
SGAI 1.03261.00791.0071.02181.04971.02460.991.00040.98061.039
LVGI 0.84230.96960.89361.04950.97640.96570.96460.96430.96620.9416
TATA -0.0387-0.0524-0.0514-0.0518-0.0452-0.0334-0.04010.00580.01550.0047
M-score -2.60-2.81-2.77-2.73-2.77-2.61-2.67-2.28-2.16-2.34
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