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CSX Corp (NYSE:CSX)
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.

CSX Corp has a M-score of -2.71 suggests that the company is not a manipulator.

CSX' s 10-Year Beneish M-Score Range
Min: -12.93   Max: 17.29
Current: -2.71

-12.93
17.29

During the past 13 years, the highest Beneish M-Score of CSX Corp was 17.29. The lowest was -12.93. And the median was -2.62.


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 * 0.9786+0.528 * 0.9636+0.404 * 0.9226+0.892 * 1.0504+0.115 * 1.0082
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0349+4.679 * -0.0431-0.327 * 0.9824
=-2.71

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,103 Mil.
Revenue was 3027 + 3192 + 3221 + 3244 = $12,684 Mil.
Gross Profit was 2017 + 2100 + 2112 + 2093 = $8,322 Mil.
Total Current Assets was $2,457 Mil.
Total Assets was $33,161 Mil.
Property, Plant and Equipment(Net PPE) was $28,872 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,163 Mil.
Selling, General & Admin. Expense(SGA) was $3,882 Mil.
Total Current Liabilities was $2,038 Mil.
Long-Term Debt was $9,513 Mil.
Net Income was 442 + 491 + 509 + 529 = $1,971 Mil.
Non Operating Income was 2 + 2 + -26 + -12 = $-34 Mil.
Cash Flow from Operations was 690 + 1041 + 857 + 846 = $3,434 Mil.
Accounts Receivable was $1,073 Mil.
Revenue was 3012 + 3032 + 2985 + 3046 = $12,075 Mil.
Gross Profit was 1836 + 1897 + 1908 + 1993 = $7,634 Mil.
Total Current Assets was $2,289 Mil.
Total Assets was $31,680 Mil.
Property, Plant and Equipment(Net PPE) was $27,494 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,117 Mil.
Selling, General & Admin. Expense(SGA) was $3,571 Mil.
Total Current Liabilities was $2,212 Mil.
Long-Term Debt was $9,021 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)
=(1103 / 12684) / (1073 / 12075)
=0.08695995 / 0.08886128
=0.9786

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)
=(2100 / 12075) / (2017 / 12684)
=0.63221532 / 0.65610218
=0.9636

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 - (2457 + 28872) / 33161) / (1 - (2289 + 27494) / 31680)
=0.05524562 / 0.05988005
=0.9226

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
=12684 / 12075
=1.0504

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))
=(1117 / (1117 + 27494)) / (1163 / (1163 + 28872))
=0.03904093 / 0.03872149
=1.0082

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)
=(3882 / 12684) / (3571 / 12075)
=0.30605487 / 0.29573499
=1.0349

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)
=((9513 + 2038) / 33161) / ((9021 + 2212) / 31680)
=0.34833087 / 0.35457702
=0.9824

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
=(1971 - -34 - 3434) / 33161
=-0.0431

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 -2.71 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.

CSX Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.96750.87990.95370.84031.11890.84830.91211.11210.92371.0187
GMI 0.93260.92180.93771.05110.96981.04451.03130.99160.99960.9983
AQI 1.03990.87170.81030.92981.01331.13391.00871.05041.06170.9656
SGI 1.07191.111.04851.12210.80331.17641.10411.00171.02241.0535
DEPI 0.890.99711.01351.00951.03220.98451.01750.96281.00471.0044
SGAI 0.97370.92170.9720.88191.27230.93760.93860.98671.00851.0267
LVGI 0.85690.94181.1411.05370.96231.03651.02280.98940.94590.9762
TATA 0.0052-0.0335-0.0345-0.0613-0.0342-0.0613-0.0575-0.0375-0.0442-0.042
M-score -2.40-2.71-2.79-2.80-2.75-2.67-2.71-2.53-2.70-2.62

CSX Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.11210.85060.83970.83910.92371.07071.07881.08761.01870.9786
GMI 0.99160.98730.98690.99380.99961.01911.02531.01460.99830.9636
AQI 1.05041.04741.08391.0831.06171.05811.03311.03080.96560.9226
SGI 1.00170.98830.99181.00521.02241.02681.04061.05251.05351.0504
DEPI 0.96280.96690.96450.97371.00471.00361.00110.99541.00441.0082
SGAI 0.98670.99721.00541.00491.00851.02081.01331.00981.02671.0349
LVGI 0.98940.96310.96440.94670.94590.9580.96390.99830.97620.9824
TATA -0.0375-0.0464-0.0458-0.0427-0.0442-0.0426-0.0412-0.0358-0.042-0.0431
M-score -2.53-2.82-2.82-2.78-2.70-2.55-2.53-2.50-2.62-2.71
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