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CSS Industries Inc (NYSE:CSS)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

CSS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.73   Max: -1.33
Current: -2.67

-3.73
-1.33

During the past 13 years, the highest Beneish M-Score of CSS Industries Inc was -1.33. The lowest was -3.73. 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 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 * 0.9321+0.528 * 1.0123+0.404 * 1.1019+0.892 * 1.0002+0.115 * 0.9786
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.99+4.679 * -0.0401-0.327 * 0.9646
=-2.67

* 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 $79.0 Mil.
Revenue was 104.568 + 111.477 + 44.228 + 53.702 = $314.0 Mil.
Gross Profit was 35.188 + 37.791 + 12.442 + 15.383 = $100.8 Mil.
Total Current Assets was $245.2 Mil.
Total Assets was $324.4 Mil.
Property, Plant and Equipment(Net PPE) was $26.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.2 Mil.
Selling, General & Admin. Expense(SGA) was $74.7 Mil.
Total Current Liabilities was $45.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 9.664 + 11.229 + -3.068 + -1.336 = $16.5 Mil.
Non Operating Income was 0.009 + -0.048 + 0.048 + -0.035 = $-0.0 Mil.
Cash Flow from Operations was 35.988 + -19.729 + -17.632 + 30.885 = $29.5 Mil.
Accounts Receivable was $84.7 Mil.
Revenue was 104.993 + 106.092 + 48.257 + 54.56 = $313.9 Mil.
Gross Profit was 36.323 + 35.397 + 14.599 + 15.704 = $102.0 Mil.
Total Current Assets was $250.8 Mil.
Total Assets was $324.3 Mil.
Property, Plant and Equipment(Net PPE) was $25.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.7 Mil.
Selling, General & Admin. Expense(SGA) was $75.4 Mil.
Total Current Liabilities was $46.8 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)
=(78.978 / 313.975) / (84.713 / 313.902)
=0.25154232 / 0.26987085
=0.9321

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)
=(37.791 / 313.902) / (35.188 / 313.975)
=0.32501545 / 0.32105741
=1.0123

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 - (245.195 + 26.592) / 324.35) / (1 - (250.804 + 25.775) / 324.271)
=0.16205642 / 0.14707451
=1.1019

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
=313.975 / 313.902
=1.0002

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))
=(7.701 / (7.701 + 25.775)) / (8.172 / (8.172 + 26.592))
=0.23004541 / 0.23507076
=0.9786

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)
=(74.675 / 313.975) / (75.414 / 313.902)
=0.23783741 / 0.24024696
=0.99

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 + 45.112) / 324.35) / ((0 + 46.758) / 324.271)
=0.13908432 / 0.14419421
=0.9646

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
=(16.489 - -0.026 - 29.512) / 324.35
=-0.0401

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 -2.67 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 0.86920.8010.96470.78650.93441.00310.85440.90450.8811.0495
TATA -0.0183-0.0943-0.0493-0.0339-0.257-0.0868-0.0342-0.0503-0.0307-0.0518
M-score -2.54-2.88-2.15-2.38-3.73-3.03-2.56-2.77-2.62-2.76

CSS Industries Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.95671.09541.16571.14961.00910.96960.9730.88550.97770.9321
GMI 0.96440.94830.93050.94540.960.97160.99080.99710.99771.0123
AQI 1.01270.95740.91220.9610.92170.95091.10031.08321.11641.1019
SGI 0.85540.85960.87990.91820.95740.98240.97690.96090.99741.0002
DEPI 1.00351.0080.980.9620.94090.93140.92330.9230.9520.9786
SGAI 1.06951.08011.06011.03261.00791.0071.02181.04971.02460.99
LVGI 0.81670.94080.8810.84230.96960.89361.04950.97640.96570.9646
TATA -0.0934-0.0515-0.0307-0.0387-0.0524-0.0514-0.0518-0.0452-0.0334-0.0401
M-score -3.05-2.80-2.62-2.60-2.81-2.77-2.76-2.81-2.61-2.67
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