EBF has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
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.
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|
|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
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)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(140.052 / 535.823)||/||(141.889 / 508.807)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|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)|
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.
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))|
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)|
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)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(9.687 - 1.463||-||72.212)||/||365.579|
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.
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
Ennis Inc Annual Data
Ennis Inc Quarterly Data