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First Cash Financial Services Inc (NAS:FCFS)
Beneish M-Score
-2.56 (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 -2.56 suggests that the company is not a manipulator.

FCFS' s 10-Year Beneish M-Score Range
Min: -5.59   Max: 5.62
Current: -2.56

-5.59
5.62

During the past 13 years, the highest Beneish M-Score of First Cash Financial Services Inc was 5.62. The lowest was -5.59. And the median was -2.49.


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 * 0.9971+0.528 * 1.0309+0.404 * 0.9781+0.892 * 1.103+0.115 * 0.9852
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0155+4.679 * -0.0345-0.327 * 1.0284
=-2.56

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $143.0 Mil.
Revenue was 165.326 + 169.777 + 182.687 + 174.187 = $692.0 Mil.
Gross Profit was 93.921 + 96.456 + 98.189 + 94.553 = $383.1 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 $242.0 Mil.
Total Current Liabilities was $42.4 Mil.
Long-Term Debt was $200.0 Mil.
Net Income was 16.015 + 22.682 + 24.778 + 23.141 = $86.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 23.346 + 25.594 + 32.699 + 28.972 = $110.6 Mil.
Accounts Receivable was $130.1 Mil.
Revenue was 142.354 + 159.912 + 175.385 + 149.695 = $627.3 Mil.
Gross Profit was 84.147 + 91.26 + 96.711 + 85.938 = $358.1 Mil.
Total Current Assets was $248.7 Mil.
Total Assets was $575.4 Mil.
Property, Plant and Equipment(Net PPE) was $97.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.2 Mil.
Selling, General & Admin. Expense(SGA) was $216.0 Mil.
Total Current Liabilities was $35.5 Mil.
Long-Term Debt was $159.7 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)
=(143.048 / 691.977) / (130.07 / 627.346)
=0.20672363 / 0.20733375
=0.9971

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)
=(96.456 / 627.346) / (93.921 / 691.977)
=0.57074724 / 0.55365858
=1.0309

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 - (311.762 + 112.488) / 694.727) / (1 - (248.652 + 97.734) / 575.443)
=0.38932847 / 0.39805333
=0.9781

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
=691.977 / 627.346
=1.103

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))
=(14.178 / (14.178 + 97.734)) / (16.6 / (16.6 + 112.488))
=0.12668883 / 0.12859445
=0.9852

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)
=(241.97 / 691.977) / (216.027 / 627.346)
=0.34967925 / 0.34435065
=1.0155

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)
=((200 + 42.4) / 694.727) / ((159.704 + 35.533) / 575.443)
=0.34891403 / 0.33928121
=1.0284

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
=(86.616 - 0 - 110.611) / 694.727
=-0.0345

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 -2.56 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 0.94970.76851.45030.70930.85771.07211.11630.82061.23840.994
GMI 1.00481.02671.00061.01981.02391.03210.99711.03410.99661.0133
AQI 0.87220.8691.28670.99370.96730.77550.82460.88791.66271.1609
SGI 1.23611.11621.18411.17931.14411.13231.16081.22991.14231.1161
DEPI 0.89410.97990.95070.95850.95391.2091.23311.16841.06910.9815
SGAI 0.95810.96520.99510.96760.94250.9670.99310.91091.00021.0389
LVGI 0.49181.3272.00841.73631.52080.37930.66450.94292.82111.2793
TATA -0.1455-0.0916-0.02150.0673-0.298-0.1383-0.0467-0.0073-0.0166-0.0347
M-score -2.88-3.16-2.22-2.50-4.04-2.78-2.38-2.45-2.53-2.57

First Cash Financial Services Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.94860.97081.23741.24051.11781.09150.9630.99660.9980.9971
GMI 1.03271.02941.01830.99691.00010.98731.0041.01461.01221.0309
AQI 1.56571.6071.63691.66271.11761.21691.14581.16091.13630.9781
SGI 1.19081.15141.12341.14031.15821.15141.16051.11321.08361.103
DEPI 1.19731.09651.16951.06910.9840.96940.94440.98150.96470.9852
SGAI 0.93130.94950.9820.99910.99151.02081.0091.03581.05191.0155
LVGI 1.49672.52392.78482.82111.10851.2921.05341.27931.89151.0284
TATA -0.031-0.027-0.0123-0.0166-0.0035-0.0203-0.0359-0.0347-0.0303-0.0345
M-score -2.38-2.72-2.50-2.53-2.24-2.38-2.50-2.57-2.79-2.56
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