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CSS Industries Inc (NYSE:CSS)
Beneish M-Score
-2.76 (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 -2.76 suggests that the company is not a manipulator.

CSS' s 10-Year Beneish M-Score Range
Min: -3.73   Max: -1.36
Current: -2.76

-3.73
-1.36

During the past 13 years, the highest Beneish M-Score of CSS Industries Inc was -1.36. The lowest was -3.73. 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 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 * 0.973+0.528 * 0.9908+0.404 * 1.1003+0.892 * 0.9769+0.115 * 0.9233
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0218+4.679 * -0.0518-0.327 * 1.0495
=-2.76

* 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 $42.1 Mil.
Revenue was 53.702 + 104.993 + 106.092 + 48.257 = $313.0 Mil.
Gross Profit was 15.383 + 36.323 + 35.397 + 14.599 = $101.7 Mil.
Total Current Assets was $229.4 Mil.
Total Assets was $309.5 Mil.
Property, Plant and Equipment(Net PPE) was $25.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.9 Mil.
Selling, General & Admin. Expense(SGA) was $75.1 Mil.
Total Current Liabilities was $35.0 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -1.336 + 9.768 + 9.847 + -1.325 = $17.0 Mil.
Non Operating Income was -0.035 + -0.036 + 0 + 0.079 = $0.0 Mil.
Cash Flow from Operations was 30.885 + 33.873 + -18.337 + -13.43 = $33.0 Mil.
Accounts Receivable was $44.2 Mil.
Revenue was 54.56 + 106.295 + 112.487 + 47.117 = $320.5 Mil.
Gross Profit was 15.704 + 36.266 + 36.727 + 14.459 = $103.2 Mil.
Total Current Assets was $219.4 Mil.
Total Assets was $293.5 Mil.
Property, Plant and Equipment(Net PPE) was $27.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.5 Mil.
Selling, General & Admin. Expense(SGA) was $75.2 Mil.
Total Current Liabilities was $31.6 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)
=(42.052 / 313.044) / (44.243 / 320.459)
=0.13433255 / 0.13806134
=0.973

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)
=(36.323 / 320.459) / (15.383 / 313.044)
=0.32190077 / 0.32488085
=0.9908

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 - (229.427 + 25.493) / 309.473) / (1 - (219.444 + 27.063) / 293.535)
=0.17627709 / 0.16021258
=1.1003

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
=313.044 / 320.459
=0.9769

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))
=(7.543 / (7.543 + 27.063)) / (7.878 / (7.878 + 25.493))
=0.21796798 / 0.23607324
=0.9233

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)
=(75.062 / 313.044) / (75.204 / 320.459)
=0.23978099 / 0.23467589
=1.0218

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 + 35.005) / 309.473) / ((0 + 31.635) / 293.535)
=0.11311164 / 0.1077725
=1.0495

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
=(16.954 - 0.008 - 32.991) / 309.473
=-0.0518

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 -2.76 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.

CSS Industries Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 0.97441.03441.12171.15411.12421.08971.05381.01181.16570.973
GMI 1.08040.93040.93271.05441.06160.82581.03080.96730.93050.9908
AQI 0.98880.98472.35521.12160.67791.04190.88330.91630.91221.1003
SGI 0.97971.00990.93890.96820.92960.85551.00260.94680.87990.9769
DEPI 0.93830.86770.94561.0690.93040.92751.06680.98470.980.9233
SGAI 1.02351.05471.07151.0331.0641.05320.99160.99361.06011.0218
LVGI 0.86920.8010.96470.78650.93441.00310.95590.91880.77521.0495
TATA -0.0183-0.0943-0.0493-0.0339-0.257-0.0868-0.0342-0.0503-0.0307-0.0518
M-score -2.54-2.88-2.15-2.38-3.73-3.03-2.60-2.78-2.59-2.76

CSS Industries Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.91021.01180.81440.95671.09541.16571.14961.00910.96960.973
GMI 0.9780.96730.96410.96440.94830.93050.94540.960.97160.9908
AQI 0.82980.91630.92571.01270.95740.91220.9610.92170.95091.1003
SGI 0.96240.94680.89540.85540.85960.87990.91820.95740.98240.9769
DEPI 1.00110.98470.99561.00351.0080.980.9620.94090.93140.9233
SGAI 0.98890.99361.04231.06951.08011.06011.03261.00791.0071.0218
LVGI 0.84211.02790.86320.89090.94080.77520.84230.88890.89361.0495
TATA -0.1148-0.0503-0.0812-0.0934-0.0515-0.0307-0.0387-0.0524-0.0514-0.0518
M-score -3.16-2.81-3.14-3.08-2.80-2.59-2.60-2.78-2.77-2.76
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