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First Cash Financial Services Inc (NAS:FCFS)
Beneish M-Score
-2.82 (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 -2.82 suggests that the company is not a manipulator.

FCFS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.94   Max: 2.83
Current: -2.82

-3.94
2.83

During the past 13 years, the highest Beneish M-Score of First Cash Financial Services Inc was 2.83. The lowest was -3.94. 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 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 * 1.0001+0.528 * 1.0129+0.404 * 1+0.892 * 0.9884+0.115 * 0.968
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0467+4.679 * -0.0626-0.327 * 1.0867
=-2.82

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $135.1 Mil.
Revenue was 191.424 + 169.532 + 167.623 + 176.023 = $704.6 Mil.
Gross Profit was 102.925 + 95.442 + 94.046 + 98.771 = $391.2 Mil.
Total Current Assets was $325.4 Mil.
Total Assets was $757.0 Mil.
Property, Plant and Equipment(Net PPE) was $112.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.9 Mil.
Selling, General & Admin. Expense(SGA) was $262.3 Mil.
Total Current Liabilities was $46.2 Mil.
Long-Term Debt was $258.0 Mil.
Net Income was 19.41 + 11.173 + 13.339 + 16.788 = $60.7 Mil.
Non Operating Income was 23.234 + -7.913 + 0 + 0 = $15.3 Mil.
Cash Flow from Operations was 27.627 + 23.213 + 14.479 + 27.43 = $92.7 Mil.
Accounts Receivable was $136.7 Mil.
Revenue was 202.774 + 175 + 165.326 + 169.777 = $712.9 Mil.
Gross Profit was 111.633 + 98.863 + 93.921 + 96.456 = $400.9 Mil.
Total Current Assets was $300.8 Mil.
Total Assets was $716.6 Mil.
Property, Plant and Equipment(Net PPE) was $113.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.5 Mil.
Selling, General & Admin. Expense(SGA) was $253.6 Mil.
Total Current Liabilities was $42.6 Mil.
Long-Term Debt was $222.4 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)
=(135.125 / 704.602) / (136.703 / 712.877)
=0.19177493 / 0.19176239
=1.0001

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)
=(95.442 / 712.877) / (102.925 / 704.602)
=0.56233123 / 0.55518435
=1.0129

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 - (325.434 + 112.447) / 757.021) / (1 - (300.753 + 113.75) / 716.623)
=0.42157351 / 0.42158848
=1

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
=704.602 / 712.877
=0.9884

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))
=(17.476 / (17.476 + 113.75)) / (17.939 / (17.939 + 112.447))
=0.13317483 / 0.13758379
=0.968

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)
=(262.33 / 704.602) / (253.572 / 712.877)
=0.37230947 / 0.35570232
=1.0467

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)
=((258 + 46.175) / 757.021) / ((222.4 + 42.559) / 716.623)
=0.40180523 / 0.36973276
=1.0867

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
=(60.71 - 15.321 - 92.749) / 757.021
=-0.0626

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 -2.82 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.48630.51941.27781.10641.10.83471.23741.00050.95021.0001
GMI 1.04751.20610.82721.04210.98941.04280.9951.01620.99451.0129
AQI 1.28670.99370.96730.77550.82460.88791.66271.16091.0661
SGI 1.29811.44020.85861.09721.17811.20911.14321.10891.07870.9884
DEPI 0.95070.95850.95391.2091.23311.16841.06910.98150.9340.968
SGAI 0.93810.85841.16060.95030.9920.91511.0051.03151.01831.0467
LVGI 2.00841.73631.52080.37930.66450.94292.82111.27931.03331.0867
TATA -0.02060.0671-0.298-0.1206-0.0475-0.0069-0.0191-0.0395-0.0175-0.0626
M-score -2.05-2.33-4.05-2.69-2.39-2.45-2.55-2.59-2.54-2.82

First Cash Financial Services Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.9940.99540.99461.05470.95020.93130.96560.90741.00011.1114
GMI 1.01331.01091.02961.0040.99450.99660.99161.00281.01291.0122
AQI 1.16091.13630.97811.00611.0661.05241.0891.041911.0771
SGI 1.11611.08641.10571.0681.07871.07221.041.02970.98840.9898
DEPI 0.98150.96470.98520.98570.9340.93370.93180.91230.9681.0331
SGAI 1.03891.0551.01831.03351.01831.01591.03481.03161.04671.0547
LVGI 1.27931.89151.02841.10681.03331.03791.13491.09971.08671.0659
TATA -0.0395-0.0344-0.0385-0.0315-0.0354-0.0475-0.0364-0.0399-0.0626-0.0368
M-score -2.59-2.81-2.58-2.55-2.62-2.70-2.67-2.76-2.82-2.55
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