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Ennis Inc (NYSE:EBF)
Beneish M-Score
-2.70 (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 -2.70 suggests that the company is not a manipulator.

EBF' s 10-Year Beneish M-Score Range
Min: -3.9   Max: -1.49
Current: -2.7

-3.9
-1.49

During the past 13 years, the highest Beneish M-Score of Ennis Inc was -1.49. The lowest was -3.90. And the median was -2.54.


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 * 1.0629+0.528 * 0.9897+0.404 * 0.993+0.892 * 1.0671+0.115 * 0.8652
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9743+4.679 * -0.0212-0.327 * 1.6832
=-2.70

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

This Year (Aug14) TTM:Last Year (Aug13) TTM:
Accounts Receivable was $67.0 Mil.
Revenue was 151.841 + 141.186 + 132.138 + 136.55 = $561.7 Mil.
Gross Profit was 38.188 + 35.388 + 33.58 + 37.759 = $144.9 Mil.
Total Current Assets was $223.3 Mil.
Total Assets was $546.0 Mil.
Property, Plant and Equipment(Net PPE) was $91.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.8 Mil.
Selling, General & Admin. Expense(SGA) was $87.0 Mil.
Total Current Liabilities was $44.0 Mil.
Long-Term Debt was $104.0 Mil.
Net Income was 10.016 + 8.032 + -14.467 + 9.349 = $12.9 Mil.
Non Operating Income was 0.057 + -0.343 + 0.045 + -0.253 = $-0.5 Mil.
Cash Flow from Operations was 19.026 + 13.312 + -5.816 + -1.533 = $25.0 Mil.
Accounts Receivable was $59.1 Mil.
Revenue was 135.288 + 138.466 + 123.638 + 128.996 = $526.4 Mil.
Gross Profit was 36.659 + 35.795 + 31.343 + 30.611 = $134.4 Mil.
Total Current Assets was $191.3 Mil.
Total Assets was $487.3 Mil.
Property, Plant and Equipment(Net PPE) was $87.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.9 Mil.
Selling, General & Admin. Expense(SGA) was $83.7 Mil.
Total Current Liabilities was $43.5 Mil.
Long-Term Debt was $35.0 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)
=(67.013 / 561.715) / (59.08 / 526.388)
=0.11930071 / 0.1122366
=1.0629

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)
=(35.388 / 526.388) / (38.188 / 561.715)
=0.25534017 / 0.2579867
=0.9897

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 - (223.306 + 91.032) / 546.021) / (1 - (191.282 + 87.784) / 487.279)
=0.42431152 / 0.4272973
=0.993

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
=561.715 / 526.388
=1.0671

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))
=(12.869 / (12.869 + 87.784)) / (15.785 / (15.785 + 91.032))
=0.12785511 / 0.1477761
=0.8652

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)
=(87.008 / 561.715) / (83.688 / 526.388)
=0.15489706 / 0.15898539
=0.9743

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)
=((104 + 43.977) / 546.021) / ((35 + 43.457) / 487.279)
=0.27100972 / 0.16101043
=1.6832

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
=(12.93 - -0.494 - 24.989) / 546.021
=-0.0212

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 -2.70 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

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
DSRI 1.11210.58321.08521.46370.83131.12380.95961.07170.99021.0429
GMI 1.0640.9781.01770.99841.01760.93990.93041.11281.08480.8779
AQI 1.94550.99151.00160.94850.87411.0140.90030.96071.05761.0144
SGI 1.40871.53111.04531.04430.95650.88651.06230.941.03191.0167
DEPI 1.19660.62771.04611.06671.07981.25361.46850.93730.85190.945
SGAI 0.94280.89440.99321.02191.16131.0041.02651.00381.02791.0178
LVGI 1.80770.86640.85630.96110.99050.76960.9681.28620.771.3537
TATA 0.0046-0.0145-0.01680.0267-0.1773-0.10880.02540.0128-0.0505-0.0363
M-score -1.81-2.45-2.38-1.89-3.56-2.90-2.36-2.47-2.58-2.78

Ennis Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 1.16691.2471.21770.99021.05990.92531.061.04290.9731.0629
GMI 1.19311.19551.18371.08480.92710.88840.84710.87790.94580.9897
AQI 1.02771.04021.04941.05761.0341.02111.08591.01440.99020.993
SGI 0.93440.97111.00851.03191.02551.00411.00481.01671.02971.0671
DEPI 0.90060.91350.91160.85190.9070.92340.98580.9450.89160.8652
SGAI 1.02961.04951.0531.02791.02141.0041.00611.01780.99810.9743
LVGI 1.14831.11521.03640.770.71510.72991.27221.35371.57381.6832
TATA -0.0093-0.0387-0.0338-0.0505-0.0551-0.0594-0.0231-0.0363-0.0207-0.0212
M-score -2.38-2.40-2.34-2.58-2.61-2.79-2.67-2.78-2.81-2.70
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