Switch to:
First Cash Financial Services Inc (NAS:FCFS)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

FCFS' s 10-Year Beneish M-Score Range
Min: -4.3   Max: 4.85
Current: -2.59

-4.3
4.85

During the past 13 years, the highest Beneish M-Score of First Cash Financial Services Inc was 4.85. The lowest was -4.30. And the median was -2.56.


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 * 0.9656+0.528 * 0.9916+0.404 * 1.089+0.892 * 1.04+0.115 * 0.9318
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0348+4.679 * -0.0193-0.327 * 1.1349
=-2.59

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $143.7 Mil.
Revenue was 167.623 + 176.023 + 202.774 + 175 = $721.4 Mil.
Gross Profit was 94.046 + 98.771 + 111.633 + 98.863 = $403.3 Mil.
Total Current Assets was $320.0 Mil.
Total Assets was $749.6 Mil.
Property, Plant and Equipment(Net PPE) was $111.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.9 Mil.
Selling, General & Admin. Expense(SGA) was $261.8 Mil.
Total Current Liabilities was $40.8 Mil.
Long-Term Debt was $256.0 Mil.
Net Income was 13.339 + 16.788 + 26.941 + 19.528 = $76.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 14.479 + 27.43 + 28.351 + 20.789 = $91.0 Mil.
Accounts Receivable was $143.0 Mil.
Revenue was 165.326 + 169.777 + 185.203 + 173.379 = $693.7 Mil.
Gross Profit was 93.921 + 96.456 + 100.192 + 93.975 = $384.5 Mil.
Total Current Assets was $311.8 Mil.
Total Assets was $694.7 Mil.
Property, Plant and Equipment(Net PPE) was $112.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.6 Mil.
Selling, General & Admin. Expense(SGA) was $243.3 Mil.
Total Current Liabilities was $42.4 Mil.
Long-Term Debt was $200.0 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)
=(143.65 / 721.42) / (143.048 / 693.685)
=0.19912118 / 0.20621464
=0.9656

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)
=(98.771 / 693.685) / (94.046 / 721.42)
=0.5543496 / 0.55905437
=0.9916

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 - (320.022 + 111.754) / 749.574) / (1 - (311.762 + 112.488) / 694.727)
=0.42397148 / 0.38932847
=1.089

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
=721.42 / 693.685
=1.04

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))
=(16.6 / (16.6 + 112.488)) / (17.893 / (17.893 + 111.754))
=0.12859445 / 0.13801322
=0.9318

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)
=(261.776 / 721.42) / (243.252 / 693.685)
=0.36286213 / 0.35066637
=1.0348

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)
=((256 + 40.829) / 749.574) / ((200 + 42.4) / 694.727)
=0.39599693 / 0.34891403
=1.1349

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
=(76.596 - 0 - 91.049) / 749.574
=-0.0193

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 -2.59 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.29251.62950.63440.9591.07211.11630.82061.23840.9940.9502
GMI 1.02671.00061.01981.02391.03210.99711.03410.99661.01330.9945
AQI 0.8691.28670.99370.96730.77550.82460.88791.66271.16091.0368
SGI 1.11621.18411.17931.14411.13231.16081.22991.14231.11611.0787
DEPI 0.97990.95070.95850.95391.2091.23311.16841.06910.98150.934
SGAI 0.96520.99510.96760.94250.9670.99310.91091.00021.03891.0183
LVGI 1.3272.00841.73631.52080.37930.66450.94292.82111.27931.0361
TATA -0.0916-0.02150.0673-0.298-0.1383-0.0467-0.0073-0.0166-0.0347-0.0175
M-score -2.68-2.06-2.57-3.95-2.78-2.38-2.45-2.53-2.57-2.55

First Cash Financial Services Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.11781.09150.96310.9940.99540.99461.05470.95020.93130.9656
GMI 1.00010.98731.00441.01331.01091.02961.0040.99450.99660.9916
AQI 1.11761.21691.14581.16091.13630.97811.00611.03681.05241.089
SGI 1.15821.15141.15911.11611.08641.10571.0681.07871.07221.04
DEPI 0.9840.96940.94440.98150.96470.98520.98570.9340.93370.9318
SGAI 0.99151.02081.00781.03891.0551.01831.03351.01831.01591.0348
LVGI 1.10851.2921.05341.27931.89151.02841.10681.03611.03791.1349
TATA -0.0035-0.0203-0.0359-0.0347-0.0298-0.034-0.027-0.0175-0.0293-0.0193
M-score -2.24-2.38-2.50-2.57-2.79-2.56-2.53-2.55-2.62-2.59
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK