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CSS Industries Inc (NYSE:CSS)
Beneish M-Score
-2.81 (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 -2.81 suggests that the company is not a manipulator.

CSS' s 10-Year Beneish M-Score Range
Min: -3.73   Max: -1.33
Current: -2.81

-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 -2.75.


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 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 * 0.8855+0.528 * 0.9971+0.404 * 1.0832+0.892 * 0.9609+0.115 * 0.923
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0497+4.679 * -0.0452-0.327 * 0.9764
=-2.81

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $36.4 Mil.
Revenue was 44.228 + 53.702 + 104.993 + 106.092 = $309.0 Mil.
Gross Profit was 12.442 + 15.383 + 36.323 + 35.397 = $99.5 Mil.
Total Current Assets was $220.4 Mil.
Total Assets was $299.8 Mil.
Property, Plant and Equipment(Net PPE) was $25.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.0 Mil.
Selling, General & Admin. Expense(SGA) was $75.6 Mil.
Total Current Liabilities was $32.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -3.068 + -1.336 + 9.768 + 9.847 = $15.2 Mil.
Non Operating Income was 0.048 + -0.035 + -0.036 + 0 = $-0.0 Mil.
Cash Flow from Operations was -17.632 + 30.885 + 33.873 + -18.337 = $28.8 Mil.
Accounts Receivable was $42.7 Mil.
Revenue was 48.257 + 54.56 + 106.295 + 112.487 = $321.6 Mil.
Gross Profit was 14.599 + 15.704 + 36.266 + 36.727 = $103.3 Mil.
Total Current Assets was $216.7 Mil.
Total Assets was $291.9 Mil.
Property, Plant and Equipment(Net PPE) was $26.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.6 Mil.
Selling, General & Admin. Expense(SGA) was $75.0 Mil.
Total Current Liabilities was $32.4 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)
=(36.363 / 309.015) / (42.737 / 321.599)
=0.1176739 / 0.13288909
=0.8855

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)
=(15.383 / 321.599) / (12.442 / 309.015)
=0.32119503 / 0.32213647
=0.9971

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 - (220.411 + 25.51) / 299.768) / (1 - (216.685 + 26.797) / 291.884)
=0.17962891 / 0.16582615
=1.0832

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
=309.015 / 321.599
=0.9609

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))
=(7.556 / (7.556 + 26.797)) / (7.981 / (7.981 + 25.51))
=0.21995168 / 0.23830283
=0.923

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)
=(75.605 / 309.015) / (74.957 / 321.599)
=0.2446645 / 0.23307597
=1.0497

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 + 32.487) / 299.768) / ((0 + 32.397) / 291.884)
=0.10837381 / 0.11099272
=0.9764

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
=(15.211 - -0.023 - 28.789) / 299.768
=-0.0452

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 -2.81 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 0.97441.03441.12171.15411.12420.92761.2381.01181.16570.973
GMI 1.08040.93040.93271.05441.06160.97290.8750.96730.93050.9908
AQI 0.98880.98472.35521.12160.67791.04190.88330.91630.91221.1003
SGI 0.97971.00990.93890.96820.92961.0050.85350.94680.87990.9769
DEPI 0.93830.86770.94561.0690.93040.81211.21840.98470.980.9233
SGAI 1.02351.05471.07151.0331.0640.96791.07011.00191.06011.0218
LVGI 0.86920.8010.96470.78650.93441.00310.85441.02790.77521.0495
TATA -0.0183-0.0943-0.0493-0.0339-0.257-0.0924-0.0364-0.0303-0.0307-0.0518
M-score -2.54-2.88-2.15-2.38-3.73-2.99-2.61-2.72-2.59-2.76

CSS Industries Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.0130.81440.95671.09541.16571.14961.00910.96960.9730.8855
GMI 0.94540.96410.96440.94830.93050.94540.960.97160.99080.9971
AQI 0.91630.92571.01270.95740.91220.9610.92170.95091.10031.0832
SGI 0.94560.89540.85540.85960.87990.91820.95740.98240.97690.9609
DEPI 0.98470.99451.00351.0080.980.9620.94090.93140.92330.923
SGAI 0.99271.0511.07851.08951.06011.03261.00791.0071.02181.0497
LVGI 1.02790.86320.89090.85980.77520.84230.88890.89361.04950.9764
TATA -0.0503-0.0812-0.0746-0.0331-0.0307-0.0387-0.0524-0.0514-0.0518-0.0452
M-score -2.82-3.14-2.99-2.69-2.59-2.60-2.78-2.77-2.76-2.81
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