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Ennis Inc (NYSE:EBF)
Beneish M-Score
-3.57 (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 -3.57 suggests that the company is not a manipulator.

EBF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.15   Max: -1.49
Current: -3.57

-4.15
-1.49

During the past 13 years, the highest Beneish M-Score of Ennis Inc was -1.49. The lowest was -4.15. And the median was -2.59.


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 * 0.6436+0.528 * 0.9631+0.404 * 1.0596+0.892 * 0.9275+0.115 * 0.5286
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0826+4.679 * -0.1584-0.327 * 0.684
=-3.57

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

This Year (Aug16) TTM:Last Year (Aug15) TTM:
Accounts Receivable was $37.0 Mil.
Revenue was 91.246 + 90.41 + 128.185 + 139.451 = $449.3 Mil.
Gross Profit was 27.038 + 26.694 + 33.991 + 40.574 = $128.3 Mil.
Total Current Assets was $160.6 Mil.
Total Assets was $324.3 Mil.
Property, Plant and Equipment(Net PPE) was $48.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.6 Mil.
Selling, General & Admin. Expense(SGA) was $78.8 Mil.
Total Current Liabilities was $26.6 Mil.
Long-Term Debt was $30.0 Mil.
Net Income was 6.784 + -16.878 + 4.845 + 10.674 = $5.4 Mil.
Non Operating Income was 0.011 + -0.007 + 1.048 + -0.302 = $0.8 Mil.
Cash Flow from Operations was 14.031 + 15.047 + 8.012 + 18.964 = $56.1 Mil.
Accounts Receivable was $62.0 Mil.
Revenue was 100.455 + 96.769 + 140.242 + 146.971 = $484.4 Mil.
Gross Profit was 31.363 + 29.964 + 35.384 + 36.516 = $133.2 Mil.
Total Current Assets was $192.9 Mil.
Total Assets was $421.3 Mil.
Property, Plant and Equipment(Net PPE) was $87.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.3 Mil.
Selling, General & Admin. Expense(SGA) was $78.5 Mil.
Total Current Liabilities was $44.6 Mil.
Long-Term Debt was $63.0 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)
=(37.017 / 449.292) / (62.012 / 484.437)
=0.08238963 / 0.12800839
=0.6436

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)
=(133.227 / 484.437) / (128.297 / 449.292)
=0.27501409 / 0.28555372
=0.9631

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 - (160.567 + 48.436) / 324.279) / (1 - (192.935 + 87.029) / 421.309)
=0.35548401 / 0.3354901
=1.0596

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
=449.292 / 484.437
=0.9275

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))
=(14.282 / (14.282 + 87.029)) / (17.617 / (17.617 + 48.436))
=0.14097186 / 0.26671007
=0.5286

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)
=(78.798 / 449.292) / (78.476 / 484.437)
=0.1753826 / 0.16199423
=1.0826

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)
=((30 + 26.64) / 324.279) / ((63 + 44.579) / 421.309)
=0.17466441 / 0.25534465
=0.684

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
=(5.425 - 0.75 - 56.054) / 324.279
=-0.1584

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 -3.57 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.

Ennis Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
DSRI 1.08521.46370.83131.12380.95961.07170.99021.04290.92270.5929
GMI 1.01770.99841.01760.93990.93041.11281.08480.87791.05730.934
AQI 1.00160.94850.87411.0140.90030.96071.05761.01440.7381.3096
SGI 1.04531.04430.95650.88651.06230.941.03191.01671.06970.9806
DEPI 1.04611.06671.07981.25361.46850.93730.85190.9450.89290.5859
SGAI 0.99321.02191.16131.0041.02651.00381.02791.01780.96991.0523
LVGI 0.85630.96110.99050.76960.9681.28620.771.35371.17820.6316
TATA -0.01620.0282-0.1773-0.10880.02540.0128-0.0505-0.0363-0.2436-0.135
M-score -2.37-1.89-3.56-2.90-2.36-2.47-2.58-2.78-3.77-3.35

Ennis Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
DSRI 0.9731.06290.95450.92270.98991.0731.030.72560.67630.6436
GMI 0.94580.98971.05581.05731.00630.93810.87240.85770.90360.9631
AQI 0.99020.9930.66870.7380.76950.79071.11591.30960.9761.0596
SGI 1.02971.06711.07151.06970.98290.86240.83360.80120.85570.9275
DEPI 0.89160.86520.80160.89290.98531.04830.93250.58590.55290.5286
SGAI 0.99810.97430.96650.96990.99291.04581.05871.09431.09471.0826
LVGI 1.57381.68321.25681.17821.05560.94220.65270.63160.57140.684
TATA -0.0207-0.0212-0.2435-0.2436-0.2893-0.3237-0.1444-0.1327-0.1731-0.1584
M-score -2.81-2.70-3.80-3.77-3.97-4.15-3.20-3.42-3.70-3.57
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