Switch to:
CSS Industries Inc (NYSE:CSS)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

CSS' s 10-Year Beneish M-Score Range
Min: -3.73   Max: -1.33
Current: -2.77

-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 * 0.9696+0.528 * 0.9716+0.404 * 0.9509+0.892 * 0.9824+0.115 * 0.9314
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.007+4.679 * -0.0514-0.327 * 0.8936
=-2.77

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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.
Net Income was 9.768 + 9.847 + -1.325 + -1.529 = $16.8 Mil.
Non Operating Income was -0.036 + 0 + 0.079 + -0.09 = $-0.0 Mil.
Cash Flow from Operations was 33.873 + -18.337 + -13.43 + 31.374 = $33.5 Mil.
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.



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)
=(84.713 / 313.902) / (88.934 / 319.52)
=0.26987085 / 0.27833625
=0.9696

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)
=(35.397 / 319.52) / (36.323 / 313.902)
=0.31578931 / 0.32501545
=0.9716

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 - (250.804 + 25.775) / 324.271) / (1 - (238.924 + 27.553) / 315.232)
=0.14707451 / 0.15466387
=0.9509

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
=313.902 / 319.52
=0.9824

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))
=(7.514 / (7.514 + 27.553)) / (7.701 / (7.701 + 25.775))
=0.21427553 / 0.23004541
=0.9314

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)
=(75.414 / 313.902) / (76.229 / 319.52)
=0.24024696 / 0.23857349
=1.007

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 + 46.758) / 324.271) / ((0 + 50.865) / 315.232)
=0.14419421 / 0.16135735
=0.8936

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
=(16.761 - -0.047 - 33.48) / 324.271
=-0.0514

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 -2.77 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.06350.91021.01180.81440.95671.09541.16571.14961.00910.9696
GMI 0.98640.9780.96730.96410.96440.94830.93050.94540.960.9716
AQI 0.93250.82980.91630.92571.01270.95740.91220.9610.92170.9509
SGI 0.98680.96240.94680.89540.85540.85960.87990.91820.95740.9824
DEPI 1.02151.00110.98470.99561.00351.0080.980.9620.94090.9314
SGAI 1.0090.98890.99361.04231.06951.08011.06011.03261.00791.007
LVGI 0.65720.84211.02790.86320.89090.94080.77520.84230.88890.8936
TATA -0.1416-0.1148-0.0503-0.0812-0.0934-0.0515-0.0307-0.0387-0.0524-0.0514
M-score -3.02-3.16-2.81-3.14-3.08-2.80-2.59-2.60-2.78-2.77
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK