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Ennis Inc (NYSE:EBF)
Beneish M-Score
-3.67 (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.

Ennis Inc has a M-score of -3.67 suggests that the company is not a manipulator.

EBF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.18   Max: -1.49
Current: -3.67

-4.18
-1.49

During the past 13 years, the highest Beneish M-Score of Ennis Inc was -1.49. The lowest was -4.18. And the median was -2.58.


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 Ennis 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 * 0.6094+0.528 * 0.9373+0.404 * 0.976+0.892 * 0.9496+0.115 * 0.5529
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0782+4.679 * -0.175-0.327 * 0.5714
=-3.67

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

This Year (May16) TTM:Last Year (May15) TTM:
Accounts Receivable was $36.0 Mil.
Revenue was 90.41 + 128.185 + 139.451 + 150.761 = $508.8 Mil.
Gross Profit was 26.694 + 33.991 + 40.574 + 40.63 = $141.9 Mil.
Total Current Assets was $199.5 Mil.
Total Assets was $365.6 Mil.
Property, Plant and Equipment(Net PPE) was $50.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.6 Mil.
Selling, General & Admin. Expense(SGA) was $86.2 Mil.
Total Current Liabilities was $25.3 Mil.
Long-Term Debt was $35.0 Mil.
Net Income was -16.878 + 4.845 + 10.674 + 11.046 = $9.7 Mil.
Non Operating Income was -0.007 + 1.048 + -0.302 + 0.724 = $1.5 Mil.
Cash Flow from Operations was 15.047 + 8.012 + 18.476 + 30.677 = $72.2 Mil.
Accounts Receivable was $62.2 Mil.
Revenue was 96.769 + 140.242 + 146.971 + 151.841 = $535.8 Mil.
Gross Profit was 29.964 + 35.384 + 36.516 + 38.188 = $140.1 Mil.
Total Current Assets was $203.8 Mil.
Total Assets was $436.6 Mil.
Property, Plant and Equipment(Net PPE) was $90.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.2 Mil.
Selling, General & Admin. Expense(SGA) was $84.2 Mil.
Total Current Liabilities was $40.5 Mil.
Long-Term Debt was $85.5 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)
=(35.979 / 508.807) / (62.174 / 535.823)
=0.07071247 / 0.11603459
=0.6094

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)
=(140.052 / 535.823) / (141.889 / 508.807)
=0.26137736 / 0.27886605
=0.9373

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 - (199.462 + 49.957) / 365.579) / (1 - (203.81 + 90.68) / 436.643)
=0.31774254 / 0.32555887
=0.976

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
=508.807 / 535.823
=0.9496

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))
=(15.223 / (15.223 + 90.68)) / (17.553 / (17.553 + 49.957))
=0.14374475 / 0.26000593
=0.5529

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)
=(86.189 / 508.807) / (84.184 / 535.823)
=0.16939429 / 0.15711158
=1.0782

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)
=((35 + 25.255) / 365.579) / ((85.5 + 40.458) / 436.643)
=0.16482074 / 0.28846907
=0.5714

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
=(9.687 - 1.463 - 72.212) / 365.579
=-0.175

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.

Ennis Inc has a M-score of -3.67 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.

Ennis Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
DSRI 1.08521.46370.83131.12380.95961.07170.99021.04290.92270.8901
GMI 1.01770.99841.01760.93990.93041.11281.08480.87791.05730.934
AQI 1.00160.94850.87411.0140.90030.96071.05761.01440.7381.0596
SGI 1.04531.04430.95650.88651.06230.941.03191.01671.06970.9806
DEPI 1.04611.06671.04911.29031.46850.93730.85190.9450.89290.8485
SGAI 0.99111.02421.16131.0041.02651.00381.02791.01780.96991.0523
LVGI 0.85630.96110.99050.76960.9681.28620.771.35371.17820.6332
TATA -0.01640.0282-0.1773-0.10880.02540.0128-0.0505-0.0363-0.2436-0.1353
M-score -2.37-1.89-3.56-2.89-2.36-2.47-2.58-2.78-3.77-3.15

Ennis Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
DSRI 1.04290.9731.06290.95450.92270.98990.9720.93170.98310.6094
GMI 0.87790.94580.98971.05581.05731.00630.96820.90340.88980.9373
AQI 1.01440.99020.9930.66870.7380.76950.79071.11591.05960.976
SGI 1.01671.02971.06711.07151.06970.98290.9520.92150.88780.9496
DEPI 0.9450.89160.86520.80160.89290.98530.91280.93250.84850.5529
SGAI 1.01790.99810.97430.96650.96990.99291.0361.04761.07931.0782
LVGI 1.35371.57381.68321.25681.17821.05560.94220.65270.63320.5714
TATA -0.0363-0.0207-0.0212-0.2435-0.2436-0.2893-0.3266-0.1462-0.1349-0.175
M-score -2.78-2.81-2.70-3.80-3.77-3.97-4.18-3.20-3.17-3.67
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