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Ennis Inc (NYSE:EBF)
Beneish M-Score
-3.77 (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 -3.77 suggests that the company is not a manipulator.

EBF' s 10-Year Beneish M-Score Range
Min: -3.77   Max: -1.73
Current: -3.77

-3.77
-1.73

During the past 13 years, the highest Beneish M-Score of Ennis Inc was -1.73. The lowest was -3.77. And the median was -2.47.


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 * 0.9227+0.528 * 1.0573+0.404 * 0.738+0.892 * 1.0697+0.115 * 0.8929
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9699+4.679 * -0.2436-0.327 * 1.1782
=-3.77

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

This Year (Feb15) TTM:Last Year (Feb14) TTM:
Accounts Receivable was $62.9 Mil.
Revenue was 140.242 + 146.971 + 151.841 + 141.186 = $580.2 Mil.
Gross Profit was 35.384 + 36.516 + 38.188 + 35.388 = $145.5 Mil.
Total Current Assets was $216.5 Mil.
Total Assets was $453.3 Mil.
Property, Plant and Equipment(Net PPE) was $92.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.3 Mil.
Selling, General & Admin. Expense(SGA) was $89.9 Mil.
Total Current Liabilities was $40.2 Mil.
Long-Term Debt was $106.5 Mil.
Net Income was 8.598 + -71.179 + 10.016 + 8.032 = $-44.5 Mil.
Non Operating Income was 0.547 + 0.347 + 0.057 + -0.343 = $0.6 Mil.
Cash Flow from Operations was 18.871 + 14.06 + 19.026 + 13.312 = $65.3 Mil.
Accounts Receivable was $63.7 Mil.
Revenue was 132.138 + 136.55 + 135.288 + 138.466 = $542.4 Mil.
Gross Profit was 33.58 + 37.759 + 36.659 + 35.795 = $143.8 Mil.
Total Current Assets was $214.1 Mil.
Total Assets was $536.3 Mil.
Property, Plant and Equipment(Net PPE) was $91.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.1 Mil.
Selling, General & Admin. Expense(SGA) was $86.7 Mil.
Total Current Liabilities was $41.9 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)
=(62.865 / 580.24) / (63.695 / 542.442)
=0.1083431 / 0.11742269
=0.9227

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)
=(36.516 / 542.442) / (35.384 / 580.24)
=0.26508456 / 0.25071694
=1.0573

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 - (216.542 + 92.875) / 453.262) / (1 - (214.143 + 91.565) / 536.347)
=0.31735508 / 0.43001825
=0.738

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
=580.24 / 542.442
=1.0697

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))
=(14.07 / (14.07 + 91.565)) / (16.284 / (16.284 + 92.875))
=0.13319449 / 0.14917689
=0.8929

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)
=(89.926 / 580.24) / (86.677 / 542.442)
=0.1549807 / 0.15979036
=0.9699

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)
=((106.5 + 40.247) / 453.262) / ((105.5 + 41.877) / 536.347)
=0.32375756 / 0.2747792
=1.1782

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
=(-44.533 - 0.608 - 65.269) / 453.262
=-0.2436

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 -3.77 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

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
DSRI 1.21770.99021.05990.92531.061.04290.9731.06290.95450.9227
GMI 1.18371.08480.92710.88840.84710.87790.94580.98971.05581.0573
AQI 1.04941.05761.0341.02111.08591.01440.99020.9930.66870.738
SGI 1.00851.03191.02551.00411.00481.01671.02971.06711.07151.0697
DEPI 0.91160.85190.9070.92340.98580.9450.89160.86520.80160.8929
SGAI 1.0531.02791.02141.0041.00611.01780.99810.97430.96650.9699
LVGI 1.03640.770.71510.72991.27221.35371.57381.68321.25681.1782
TATA -0.0338-0.0505-0.0551-0.0594-0.0231-0.0363-0.0207-0.0212-0.2435-0.2436
M-score -2.34-2.58-2.61-2.79-2.67-2.78-2.81-2.70-3.80-3.77
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