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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: -11.33   Max: 1.19
Current: -2.87

-11.33
1.19

During the past 13 years, the highest Beneish M-Score of CSX Corp was 1.19. The lowest was -11.33. And the median was -2.70.


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 * 1.0105+0.528 * 0.9668+0.404 * 0.9024+0.892 * 0.8831+0.115 * 0.9873
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0253+4.679 * -0.0494-0.327 * 1.0025
=-2.87

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $912 Mil.
Revenue was 2704 + 2618 + 2781 + 2939 = $11,042 Mil.
Gross Profit was 1908 + 1813 + 1902 + 2022 = $7,645 Mil.
Total Current Assets was $2,228 Mil.
Total Assets was $34,550 Mil.
Property, Plant and Equipment(Net PPE) was $30,607 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,246 Mil.
Selling, General & Admin. Expense(SGA) was $3,131 Mil.
Total Current Liabilities was $2,282 Mil.
Long-Term Debt was $9,905 Mil.
Net Income was 445 + 356 + 466 + 507 = $1,774 Mil.
Non Operating Income was 8 + 7 + 84 + 2 = $101 Mil.
Cash Flow from Operations was 838 + 754 + 858 + 930 = $3,380 Mil.
Accounts Receivable was $1,022 Mil.
Revenue was 3064 + 3027 + 3192 + 3221 = $12,504 Mil.
Gross Profit was 2141 + 2017 + 2100 + 2112 = $8,370 Mil.
Total Current Assets was $2,669 Mil.
Total Assets was $33,777 Mil.
Property, Plant and Equipment(Net PPE) was $29,250 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,175 Mil.
Selling, General & Admin. Expense(SGA) was $3,458 Mil.
Total Current Liabilities was $1,778 Mil.
Long-Term Debt was $10,107 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)
=(912 / 11042) / (1022 / 12504)
=0.08259373 / 0.08173385
=1.0105

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)
=(8370 / 12504) / (7645 / 11042)
=0.6693858 / 0.69235646
=0.9668

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 - (2228 + 30607) / 34550) / (1 - (2669 + 29250) / 33777)
=0.04963821 / 0.05500785
=0.9024

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
=11042 / 12504
=0.8831

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))
=(1175 / (1175 + 29250)) / (1246 / (1246 + 30607))
=0.03861956 / 0.03911719
=0.9873

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)
=(3131 / 11042) / (3458 / 12504)
=0.2835537 / 0.2765515
=1.0253

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)
=((9905 + 2282) / 34550) / ((10107 + 1778) / 33777)
=0.35273517 / 0.35186665
=1.0025

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
=(1774 - 101 - 3380) / 34550
=-0.0494

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 0.87990.95370.84031.11890.84830.90811.1170.92371.01870.933
GMI 0.81990.93771.05110.91221.11051.02870.99410.99960.99830.9391
AQI 0.87170.81030.92981.01331.13391.00871.05041.06170.96560.9443
SGI 1.111.04851.12210.80331.17641.1090.99731.02241.05350.9323
DEPI 0.99711.01351.00951.03220.98451.01750.96281.00471.00441.0056
SGAI 0.76760.9720.88191.10750.95610.93710.98541.01631.02151.045
LVGI 0.94181.1411.05370.96231.03651.02280.98940.94590.97621.0256
TATA -0.0335-0.0345-0.0613-0.0342-0.0613-0.0564-0.0375-0.0442-0.042-0.0426
M-score -2.74-2.79-2.80-2.75-2.64-2.71-2.53-2.70-2.62-2.87

CSX Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.07071.07881.08761.01870.97860.94460.91410.9330.92481.0105
GMI 1.01911.02531.01460.99830.96360.94140.93670.93910.94960.9668
AQI 1.05811.03311.03080.96560.92260.9170.92130.94430.89380.9024
SGI 1.02681.04061.05251.05351.05041.01880.97710.93230.89890.8831
DEPI 1.00361.00110.99541.00441.00821.01371.01871.00560.99550.9873
SGAI 1.02811.01361.00671.02151.02881.05511.06381.0451.03651.0253
LVGI 0.9580.96390.99830.97620.98241.00390.99141.02561.01261.0025
TATA -0.0426-0.0412-0.0358-0.042-0.0431-0.0434-0.0462-0.0426-0.0476-0.0494
M-score -2.55-2.53-2.50-2.62-2.71-2.79-2.87-2.87-2.94-2.87
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