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CSX Corp (NAS:CSX)
Beneish M-Score
-2.84 (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 -2.84 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: -2.84

-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 * 1.0424+0.528 * 0.9706+0.404 * 0.9076+0.892 * 0.8847+0.115 * 0.9748
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0326+4.679 * -0.0501-0.327 * 0.9923
=-2.84

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $925 Mil.
Revenue was 2710 + 2704 + 2618 + 2781 = $10,813 Mil.
Gross Profit was 1924 + 1908 + 1813 + 1902 = $7,547 Mil.
Total Current Assets was $2,163 Mil.
Total Assets was $34,681 Mil.
Property, Plant and Equipment(Net PPE) was $30,782 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,265 Mil.
Selling, General & Admin. Expense(SGA) was $3,106 Mil.
Total Current Liabilities was $2,263 Mil.
Long-Term Debt was $9,888 Mil.
Net Income was 455 + 445 + 356 + 466 = $1,722 Mil.
Non Operating Income was 13 + 8 + 7 + 84 = $112 Mil.
Cash Flow from Operations was 896 + 838 + 754 + 858 = $3,346 Mil.
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 $3,400 Mil.
Total Current Liabilities was $1,922 Mil.
Long-Term Debt was $10,088 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)
=(925 / 10813) / (1003 / 12222)
=0.08554518 / 0.08206513
=1.0424

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)
=(8280 / 12222) / (7547 / 10813)
=0.67746686 / 0.69795616
=0.9706

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 - (2163 + 30782) / 34681) / (1 - (2502 + 29637) / 34015)
=0.05005623 / 0.05515214
=0.9076

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
=10813 / 12222
=0.8847

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))
=(1186 / (1186 + 29637)) / (1265 / (1265 + 30782))
=0.03847776 / 0.03947327
=0.9748

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)
=(3106 / 10813) / (3400 / 12222)
=0.28724683 / 0.27818688
=1.0326

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)
=((9888 + 2263) / 34681) / ((10088 + 1922) / 34015)
=0.35036475 / 0.35307952
=0.9923

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
=(1722 - 112 - 3346) / 34681
=-0.0501

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 -2.84 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 local exchange's 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 0.87170.81030.92981.01331.13391.00871.05041.06170.96560.8681
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 0.94181.1411.05370.96231.03651.02280.98940.94590.97621.0206
TATA -0.0335-0.0345-0.0613-0.0342-0.0613-0.0564-0.0375-0.0442-0.042-0.043
M-score -2.74-2.79-2.80-2.75-2.64-2.71-2.53-2.70-2.62-2.90

CSX Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.07881.08761.01870.97860.94460.91410.9330.92481.01051.0424
GMI 1.02531.01460.99830.96360.94140.93670.93910.94960.96680.9706
AQI 1.03311.03080.96560.92260.9170.92130.86810.89380.90240.9076
SGI 1.04061.05251.05351.05041.01880.97710.93230.89890.88310.8847
DEPI 1.00110.99541.00441.00821.01371.01871.00560.99550.98730.9748
SGAI 1.01361.00671.02151.02881.05511.06381.0451.03651.02531.0326
LVGI 0.96390.99830.97620.98241.00390.99141.02061.01261.00250.9923
TATA -0.0412-0.0358-0.042-0.0431-0.0434-0.0462-0.043-0.0476-0.0494-0.0501
M-score -2.53-2.50-2.62-2.71-2.79-2.87-2.90-2.94-2.87-2.84
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