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Ennis Inc (NYSE:EBF)
Beneish M-Score
-3.95 (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 -3.95 suggests that the company is not a manipulator.

EBF' s 10-Year Beneish M-Score Range
Min: -3.95   Max: -1.49
Current: -3.95

-3.95
-1.49

During the past 13 years, the highest Beneish M-Score of Ennis Inc was -1.49. The lowest was -3.95. And the median was -2.57.


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 * 0.8996+0.528 * 1.0505+0.404 * 0.7695+0.892 * 1.0816+0.115 * 0.9202
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9732+4.679 * -0.2913-0.327 * 1.0556
=-3.95

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

This Year (May15) TTM:Last Year (May14) TTM:
Accounts Receivable was $62.2 Mil.
Revenue was 150.576 + 140.242 + 146.971 + 151.841 = $589.6 Mil.
Gross Profit was 37.544 + 35.384 + 36.516 + 38.188 = $147.6 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 $16.5 Mil.
Selling, General & Admin. Expense(SGA) was $90.8 Mil.
Total Current Liabilities was $40.5 Mil.
Long-Term Debt was $85.5 Mil.
Net Income was 9.171 + 8.598 + -71.179 + 10.016 = $-43.4 Mil.
Non Operating Income was 0.164 + 0.547 + 0.347 + 0.057 = $1.1 Mil.
Cash Flow from Operations was 30.732 + 18.871 + 14.06 + 19.026 = $82.7 Mil.
Accounts Receivable was $63.9 Mil.
Revenue was 141.186 + 132.138 + 136.55 + 135.288 = $545.2 Mil.
Gross Profit was 35.388 + 33.58 + 37.759 + 36.659 = $143.4 Mil.
Total Current Assets was $222.4 Mil.
Total Assets was $541.9 Mil.
Property, Plant and Equipment(Net PPE) was $90.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.9 Mil.
Selling, General & Admin. Expense(SGA) was $86.3 Mil.
Total Current Liabilities was $42.6 Mil.
Long-Term Debt was $105.5 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)
=(62.174 / 589.63) / (63.904 / 545.162)
=0.10544579 / 0.1172202
=0.8996

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)
=(35.384 / 545.162) / (37.544 / 589.63)
=0.2630154 / 0.25038075
=1.0505

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 - (203.81 + 90.68) / 436.643) / (1 - (222.41 + 90.228) / 541.891)
=0.32555887 / 0.4230611
=0.7695

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
=589.63 / 545.162
=1.0816

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))
=(14.887 / (14.887 + 90.228)) / (16.495 / (16.495 + 90.68))
=0.14162584 / 0.15390716
=0.9202

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)
=(90.805 / 589.63) / (86.267 / 545.162)
=0.15400336 / 0.15824104
=0.9732

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)
=((85.5 + 40.458) / 436.643) / ((105.5 + 42.591) / 541.891)
=0.28846907 / 0.27328559
=1.0556

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
=(-43.394 - 1.115 - 82.689) / 436.643
=-0.2913

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 -3.95 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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
DSRI 0.58321.08521.46370.83131.12380.95961.07170.99021.04290.9227
GMI 0.9781.01770.99841.01760.93990.93041.11281.08480.87791.0573
AQI 0.99151.00160.94850.87411.0140.90030.96071.05761.01440.738
SGI 1.53111.04531.04430.95650.88651.06230.941.03191.01671.0697
DEPI 0.62771.04611.06671.07981.25361.46850.93730.85190.9450.8929
SGAI 0.89440.99321.02191.16131.0041.02651.00381.02791.01780.9699
LVGI 0.86640.85630.96110.99050.76960.9681.28620.771.35371.1782
TATA -0.0145-0.01680.0267-0.1773-0.10880.02540.0128-0.0505-0.0363-0.2436
M-score -2.45-2.38-1.89-3.56-2.90-2.36-2.47-2.58-2.78-3.77

Ennis Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
DSRI 0.99021.05990.92531.061.04290.9731.06290.95450.92270.8996
GMI 1.08480.92710.88840.84710.87790.94580.98971.05581.05731.0505
AQI 1.05761.0341.02111.08591.01440.99020.9930.66870.7380.7695
SGI 1.03191.02551.00411.00481.01671.02971.06711.07151.06971.0816
DEPI 0.85190.9070.92340.98580.9450.89160.86520.80160.89290.9202
SGAI 1.02791.02141.0041.00611.01780.99810.97430.96650.96990.9732
LVGI 0.770.71510.72991.27221.35371.57381.68321.25681.17821.0556
TATA -0.0505-0.0551-0.0594-0.0231-0.0363-0.0207-0.0212-0.2435-0.2436-0.2913
M-score -2.58-2.61-2.79-2.67-2.78-2.81-2.70-3.80-3.77-3.95
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