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First Cash Financial Services Inc (NAS:FCFS)
Beneish M-Score
-2.53 (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.

First Cash Financial Services Inc has a M-score of -2.53 suggests that the company is not a manipulator.

FCFS' s 10-Year Beneish M-Score Range
Min: -5.73   Max: 5.62
Current: -2.53

-5.73
5.62

During the past 13 years, the highest Beneish M-Score of First Cash Financial Services Inc was 5.62. The lowest was -5.73. And the median was -2.50.


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 First Cash Financial Services 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 * 1.0677+0.528 * 1.0097+0.404 * 1.0061+0.892 * 1.0538+0.115 * 0.9857
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0187+4.679 * -0.027-0.327 * 1.1068
=-2.53

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $158.0 Mil.
Revenue was 175 + 165.326 + 169.777 + 182.687 = $692.8 Mil.
Gross Profit was 98.863 + 93.921 + 96.456 + 98.189 = $387.4 Mil.
Total Current Assets was $308.2 Mil.
Total Assets was $704.7 Mil.
Property, Plant and Equipment(Net PPE) was $115.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.0 Mil.
Selling, General & Admin. Expense(SGA) was $244.6 Mil.
Total Current Liabilities was $50.2 Mil.
Long-Term Debt was $217.5 Mil.
Net Income was 19.528 + 16.015 + 22.682 + 24.778 = $83.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 20.388 + 23.346 + 25.594 + 32.699 = $102.0 Mil.
Accounts Receivable was $140.4 Mil.
Revenue was 174.187 + 143.135 + 160.839 + 179.24 = $657.4 Mil.
Gross Profit was 94.553 + 84.75 + 92.082 + 99.835 = $371.2 Mil.
Total Current Assets was $261.5 Mil.
Total Assets was $602.7 Mil.
Property, Plant and Equipment(Net PPE) was $102.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.8 Mil.
Selling, General & Admin. Expense(SGA) was $227.9 Mil.
Total Current Liabilities was $48.5 Mil.
Long-Term Debt was $158.4 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)
=(157.972 / 692.79) / (140.397 / 657.401)
=0.22802292 / 0.21356372
=1.0677

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)
=(93.921 / 657.401) / (98.863 / 692.79)
=0.56467818 / 0.55923007
=1.0097

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 - (308.213 + 115.115) / 704.667) / (1 - (261.471 + 102.029) / 602.654)
=0.39925099 / 0.39683467
=1.0061

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
=692.79 / 657.401
=1.0538

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))
=(14.835 / (14.835 + 102.029)) / (17.016 / (17.016 + 115.115))
=0.12694243 / 0.12878129
=0.9857

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)
=(244.629 / 692.79) / (227.87 / 657.401)
=0.353107 / 0.34662253
=1.0187

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)
=((217.5 + 50.178) / 704.667) / ((158.368 + 48.461) / 602.654)
=0.37986453 / 0.34319693
=1.1068

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
=(83.003 - 0 - 102.027) / 704.667
=-0.027

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.

First Cash Financial Services Inc has a M-score of -2.53 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.

First Cash Financial Services Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.0390.54461.83930.08387.60111.15481.09860.83471.23950.9987
GMI 0.45241.01491.04751.20610.82721.04210.98941.04280.9951.0162
AQI 0.87220.8691.28670.95920.98770.78680.82460.88791.66271.1609
SGI 1.23611.15551.29811.44020.85861.09721.17811.20911.14321.1089
DEPI 0.89410.97990.95071.02930.87021.23411.23311.16841.06910.9815
SGAI 4.31080.95250.93810.85841.16060.95030.9920.91511.0051.0315
LVGI 0.49181.3272.00841.73631.52080.37930.66450.94292.82111.2793
TATA -0.1455-0.0916-0.01980.0752-0.2953-0.1179-0.0467-0.0073-0.0166-0.0347
M-score -3.67-3.33-1.72-2.701.78-2.63-2.39-2.45-2.53-2.57

First Cash Financial Services Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.97791.2431.23771.11531.08910.9591.00021.00381.00471.0677
GMI 1.03311.02020.99470.99750.98461.00111.01641.01541.03481.0097
AQI 1.6071.63691.66271.11761.21691.14581.16091.13630.97811.0061
SGI 1.1431.11841.14491.16241.15541.16541.10731.07591.09331.0538
DEPI 1.09651.16951.06910.9840.96940.94440.98150.96470.98520.9857
SGAI 0.95150.9821.00570.9991.02861.01691.03071.04371.00581.0187
LVGI 2.52392.78482.82111.10851.2921.05341.27931.89151.02841.1068
TATA -0.027-0.0123-0.0166-0.0035-0.0203-0.0359-0.0347-0.0303-0.0345-0.027
M-score -2.72-2.50-2.53-2.24-2.38-2.51-2.57-2.79-2.56-2.53
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