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CSX Corp (NAS:CSX)
Beneish M-Score
-2.87 (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.

CSX Corp has a M-score of -2.87 suggests that the company is not a manipulator.

CSX' s Beneish M-Score Range Over the Past 10 Years
Min: -11.5   Max: 0.9
Current: -2.87

-11.5
0.9

During the past 13 years, the highest Beneish M-Score of CSX Corp was 0.90. The lowest was -11.50. And the median was -2.63.


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 CSX Corp 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 * 0.9141+0.528 * 0.9367+0.404 * 0.9213+0.892 * 0.9771+0.115 * 1.0187
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0664+4.679 * -0.0462-0.327 * 0.9914
=-2.87

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,003 Mil.
Revenue was 2939 + 3064 + 3027 + 3192 = $12,222 Mil.
Gross Profit was 2022 + 2141 + 2017 + 2100 = $8,280 Mil.
Total Current Assets was $2,502 Mil.
Total Assets was $34,015 Mil.
Property, Plant and Equipment(Net PPE) was $29,637 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,186 Mil.
Selling, General & Admin. Expense(SGA) was $3,507 Mil.
Total Current Liabilities was $1,922 Mil.
Long-Term Debt was $10,088 Mil.
Net Income was 507 + 553 + 442 + 491 = $1,993 Mil.
Non Operating Income was 2 + 4 + 2 + 2 = $10 Mil.
Cash Flow from Operations was 930 + 892 + 690 + 1041 = $3,553 Mil.
Accounts Receivable was $1,123 Mil.
Revenue was 3221 + 3244 + 3012 + 3032 = $12,509 Mil.
Gross Profit was 2112 + 2093 + 1836 + 1897 = $7,938 Mil.
Total Current Assets was $2,676 Mil.
Total Assets was $32,623 Mil.
Property, Plant and Equipment(Net PPE) was $27,994 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,142 Mil.
Selling, General & Admin. Expense(SGA) was $3,366 Mil.
Total Current Liabilities was $2,231 Mil.
Long-Term Debt was $9,387 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)
=(1003 / 12222) / (1123 / 12509)
=0.08206513 / 0.08977536
=0.9141

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)
=(2141 / 12509) / (2022 / 12222)
=0.6345831 / 0.67746686
=0.9367

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 - (2502 + 29637) / 34015) / (1 - (2676 + 27994) / 32623)
=0.05515214 / 0.05986574
=0.9213

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
=12222 / 12509
=0.9771

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))
=(1142 / (1142 + 27994)) / (1186 / (1186 + 29637))
=0.0391955 / 0.03847776
=1.0187

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)
=(3507 / 12222) / (3366 / 12509)
=0.28694158 / 0.26908626
=1.0664

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)
=((10088 + 1922) / 34015) / ((9387 + 2231) / 32623)
=0.35307952 / 0.35612911
=0.9914

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
=(1993 - 10 - 3553) / 34015
=-0.0462

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.

CSX Corp has a M-score of -2.87 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.

CSX Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.87990.95370.84031.11890.84830.91211.11210.92371.01870
GMI 0.81990.93771.05110.91221.11051.03130.99160.99960.99830.9391
AQI 0.87170.81030.92981.01331.13391.00871.05041.06170.96560.9443
SGI 1.111.04851.12210.80331.17641.10411.00171.02241.05350.9323
DEPI 0.99711.01351.00951.03220.98451.01750.96281.00471.00441.0056
SGAI 0.76760.9720.88191.10750.95610.94130.98111.01631.02151.045
LVGI 0.94181.1411.05370.96231.03651.02280.98940.94590.97621.0256
TATA -0.0335-0.0345-0.0613-0.0342-0.0613-0.0575-0.0375-0.0442-0.042-0.0428
M-score -2.74-2.79-2.80-2.75-2.64-2.71-2.53-2.70-2.62-3.73

CSX Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.83910.92371.07071.07881.08761.01870.97860.94460.91410
GMI 0.99380.99961.01911.02531.01460.99830.96360.94140.93670.9391
AQI 1.0831.06171.05811.03311.03080.96560.92260.9170.92130.9443
SGI 1.00521.02241.02681.04061.05251.05351.05041.01880.97710.9323
DEPI 0.97371.00471.00361.00110.99541.00441.00821.01371.01871.0056
SGAI 1.0091.01451.02581.01141.00441.02291.03011.05651.06641.0129
LVGI 0.94670.94590.9580.96390.99830.97620.98241.00390.99141.0256
TATA -0.0427-0.0442-0.0426-0.0412-0.0358-0.042-0.0431-0.0434-0.0462-0.0428
M-score -2.78-2.70-2.55-2.53-2.50-2.62-2.71-2.79-2.87-3.73
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