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CSS Industries, Inc. (NYSE:CSS)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

CSS' s 10-Year Beneish M-Score Range
Min: -3.73   Max: -1.26
Current: -2.71

-3.73
-1.26

During the past 13 years, the highest Beneish M-Score of CSS Industries, Inc. was -1.26. 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 * 1.0954+0.528 * 0.9483+0.404 * 0.9574+0.892 * 0.8596+0.115 * 1.008
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0801+4.679 * -0.0331-0.327 * 0.9408
=-2.71

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $88.9 Mil.
Revenue was 106.295 + 112.487 + 47.117 + 53.621 = $319.5 Mil.
Gross Profit was 36.266 + 36.727 + 14.459 + 13.449 = $100.9 Mil.
Total Current Assets was $238.9 Mil.
Total Assets was $315.2 Mil.
Property, Plant and Equipment(Net PPE) was $27.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.5 Mil.
Selling, General & Admin. Expense(SGA) was $76.2 Mil.
Total Current Liabilities was $50.9 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 11.007 + 10.958 + -1.667 + -2.401 = $17.9 Mil.
Non Operating Income was -0.003 + 0.038 + -0.006 + -0.055 = $-0.0 Mil.
Cash Flow from Operations was 35.263 + -22.822 + -15.985 + 31.915 = $28.4 Mil.
Accounts Receivable was $94.4 Mil.
Revenue was 116.02 + 133.485 + 61.067 + 61.129 = $371.7 Mil.
Gross Profit was 37.613 + 40.831 + 17.198 + 15.674 = $111.3 Mil.
Total Current Assets was $232.4 Mil.
Total Assets was $310.8 Mil.
Property, Plant and Equipment(Net PPE) was $28.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.8 Mil.
Selling, General & Admin. Expense(SGA) was $82.1 Mil.
Total Current Liabilities was $53.3 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)
=(88.934 / 319.52) / (94.445 / 371.701)
=0.27833625 / 0.25408864
=1.0954

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)
=(36.727 / 371.701) / (36.266 / 319.52)
=0.29947727 / 0.31578931
=0.9483

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 - (238.924 + 27.553) / 315.232) / (1 - (232.417 + 28.164) / 310.79)
=0.15466387 / 0.16155282
=0.9574

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
=319.52 / 371.701
=0.8596

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))
=(7.759 / (7.759 + 28.164)) / (7.514 / (7.514 + 27.553))
=0.21598976 / 0.21427553
=1.008

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)
=(76.229 / 319.52) / (82.099 / 371.701)
=0.23857349 / 0.22087377
=1.0801

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 + 50.865) / 315.232) / ((0 + 53.305) / 310.79)
=0.16135735 / 0.17151453
=0.9408

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
=(17.897 - -0.026 - 28.371) / 315.232
=-0.0331

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 -2.71 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

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
DSRI 0.79970.92640.97441.03441.12171.15411.12421.08971.05381.0118
GMI 0.97361.02781.08040.93040.93271.05441.06160.82581.03080.9673
AQI 0.93961.10150.98880.98472.35521.12160.67791.04190.88330.9163
SGI 1.01230.99450.97971.00990.93890.96820.92960.85551.00260.9468
DEPI 0.9710.92920.93830.86770.94561.0690.93040.92751.06680.9847
SGAI 0.97950.96071.02351.05471.07151.0331.0641.05320.99160.9936
LVGI 0.88491.06220.86920.8010.96470.78650.93441.00310.95590.9188
TATA -0.0587-0.0248-0.0183-0.0943-0.0493-0.0339-0.257-0.0868-0.0342-0.0303
M-score -2.93-2.63-2.54-2.88-2.15-2.38-3.73-3.03-2.60-2.68

CSS Industries, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.90630.71491.05481.17331.06350.91021.01180.81440.95671.0954
GMI 0.87420.98061.03251.0220.98640.9780.96730.96410.96440.9483
AQI 1.14271.16850.88330.84180.93250.82980.91630.92571.01270.9574
SGI 0.92271.03381.00171.01520.98680.96240.94680.89540.85540.8596
DEPI 0.86030.86821.06680.99671.02151.00110.98470.99561.00351.008
SGAI 0.97540.93610.98310.99061.0090.98890.99361.04231.06951.0801
LVGI 0.82860.74650.85440.84040.65720.84211.02790.86320.89090.9408
TATA -0.0165-0.1199-0.0342-0.0743-0.1416-0.1148-0.0303-0.061-0.0746-0.0331
M-score -2.68-3.14-2.56-2.65-3.02-3.16-2.72-3.04-2.99-2.71
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