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CSS Industries Inc (NYSE:CSS)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

CSS' s 10-Year Beneish M-Score Range
Min: -3.73   Max: -1.33
Current: -2.78

-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 -2.77.


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 * 1.0091+0.528 * 0.96+0.404 * 0.9217+0.892 * 0.9574+0.115 * 0.9409
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0079+4.679 * -0.0524-0.327 * 0.8889
=-2.78

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $97.5 Mil.
Revenue was 106.092 + 48.257 + 54.56 + 106.295 = $315.2 Mil.
Gross Profit was 35.397 + 14.599 + 15.704 + 36.266 = $102.0 Mil.
Total Current Assets was $247.9 Mil.
Total Assets was $321.6 Mil.
Property, Plant and Equipment(Net PPE) was $25.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.6 Mil.
Selling, General & Admin. Expense(SGA) was $74.2 Mil.
Total Current Liabilities was $53.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 9.847 + -1.325 + -1.529 + 11.007 = $18.0 Mil.
Non Operating Income was 0 + 0.079 + -0.09 + -0.003 = $-0.0 Mil.
Cash Flow from Operations was -18.337 + -13.43 + 31.374 + 35.263 = $34.9 Mil.
Accounts Receivable was $100.9 Mil.
Revenue was 112.487 + 47.117 + 53.621 + 116.02 = $329.2 Mil.
Gross Profit was 36.727 + 14.459 + 13.449 + 37.613 = $102.2 Mil.
Total Current Assets was $230.5 Mil.
Total Assets was $308.2 Mil.
Property, Plant and Equipment(Net PPE) was $28.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.6 Mil.
Selling, General & Admin. Expense(SGA) was $76.9 Mil.
Total Current Liabilities was $52.5 Mil.
Long-Term Debt was $4.8 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)
=(97.502 / 315.204) / (100.925 / 329.245)
=0.30932983 / 0.30653465
=1.0091

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)
=(14.599 / 329.245) / (35.397 / 315.204)
=0.31055293 / 0.32349209
=0.96

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 - (247.917 + 25.854) / 321.633) / (1 - (230.466 + 27.957) / 308.18)
=0.14880936 / 0.16145434
=0.9217

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
=315.204 / 329.245
=0.9574

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))
=(7.588 / (7.588 + 27.957)) / (7.587 / (7.587 + 25.854))
=0.21347588 / 0.22687719
=0.9409

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)
=(74.177 / 315.204) / (76.874 / 329.245)
=0.23533014 / 0.2334857
=1.0079

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 + 53.123) / 321.633) / ((4.767 + 52.496) / 308.18)
=0.16516651 / 0.18581024
=0.8889

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
=(18 - -0.014 - 34.87) / 321.633
=-0.0524

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 -2.78 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 0.92640.97441.03441.12171.15411.12421.08971.05381.01181.1657
GMI 1.02781.08040.93040.93271.05441.06160.82581.03080.96730.9305
AQI 1.10150.98880.98472.35521.12160.67791.04190.88330.91630.9122
SGI 0.99450.97971.00990.93890.96820.92960.85551.00260.94680.8799
DEPI 0.92920.93830.86770.94561.0690.93040.92751.06680.98470.98
SGAI 0.96071.02351.05471.07151.0331.0641.05320.99160.99361.0601
LVGI 1.06220.86920.8010.96470.78650.93441.00310.95590.91880.7752
TATA -0.0248-0.0183-0.0943-0.0493-0.0339-0.257-0.0868-0.0342-0.0503-0.0307
M-score -2.63-2.54-2.88-2.15-2.38-3.73-3.03-2.60-2.78-2.59

CSS Industries Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.17331.06350.91021.01180.81440.95671.09541.16571.14961.0091
GMI 1.0220.98640.9780.96730.96410.96440.94830.93050.94540.96
AQI 0.84180.93250.82980.91630.92571.01270.95740.91220.9610.9217
SGI 1.01520.98680.96240.94680.89540.85540.85960.87990.91820.9574
DEPI 0.99671.02151.00110.98470.99561.00351.0080.980.9620.9409
SGAI 0.99061.0090.98890.99361.04231.06951.08011.06011.03261.0079
LVGI 0.84040.65720.84211.02790.86320.89090.94080.77520.84230.8889
TATA -0.0743-0.1416-0.1148-0.0503-0.0812-0.0934-0.0515-0.0307-0.0387-0.0524
M-score -2.65-3.02-3.16-2.81-3.14-3.08-2.80-2.59-2.60-2.78
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