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FirstCash Inc (NYSE:FCFS)
Beneish M-Score
-0.53 (As of Today)

Warning Sign:

Beneish M-Score -0.53 higher than -2.22, which implies that it might have manipulated its financial results.

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.

FirstCash Inc has a M-score of -0.53 signals that the company is a manipulator.

FCFS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.34   Max: 4.7
Current: -0.53

-4.34
4.7

During the past 13 years, the highest Beneish M-Score of FirstCash Inc was 4.70. The lowest was -4.34. And the median was -2.55.


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 FirstCash 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 * 2.8657+0.528 * 1.0069+0.404 * 1.1091+0.892 * 1.1422+0.115 * 1.7252
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0661+4.679 * -0.0186-0.327 * 0.7618
=-0.53

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $483.1 Mil.
Revenue was 261.153 + 181.979 + 183.203 + 191.424 = $817.8 Mil.
Gross Profit was 147.364 + 101.461 + 101.863 + 102.925 = $453.6 Mil.
Total Current Assets was $986.1 Mil.
Total Assets was $2,277.7 Mil.
Property, Plant and Equipment(Net PPE) was $240.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.5 Mil.
Selling, General & Admin. Expense(SGA) was $317.4 Mil.
Total Current Liabilities was $168.5 Mil.
Long-Term Debt was $556.4 Mil.
Net Income was -1.412 + 11.673 + 13.174 + 19.41 = $42.8 Mil.
Non Operating Income was 4.935 + 4.102 + 4.186 + 3.982 = $17.2 Mil.
Cash Flow from Operations was 0.901 + 14.497 + 25.076 + 27.627 = $68.1 Mil.
Accounts Receivable was $147.6 Mil.
Revenue was 169.532 + 167.623 + 176.023 + 202.774 = $716.0 Mil.
Gross Profit was 95.442 + 94.046 + 98.771 + 111.633 = $399.9 Mil.
Total Current Assets was $330.8 Mil.
Total Assets was $755.2 Mil.
Property, Plant and Equipment(Net PPE) was $110.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.1 Mil.
Selling, General & Admin. Expense(SGA) was $260.7 Mil.
Total Current Liabilities was $47.0 Mil.
Long-Term Debt was $268.5 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)
=(483.118 / 817.759) / (147.6 / 715.952)
=0.59078286 / 0.20615907
=2.8657

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)
=(399.892 / 715.952) / (453.613 / 817.759)
=0.55854582 / 0.55470255
=1.0069

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 - (986.057 + 240.749) / 2277.695) / (1 - (330.758 + 110.285) / 755.202)
=0.46138267 / 0.41599334
=1.1091

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
=817.759 / 715.952
=1.1422

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))
=(18.126 / (18.126 + 110.285)) / (21.453 / (21.453 + 240.749))
=0.14115613 / 0.0818186
=1.7252

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)
=(317.443 / 817.759) / (260.695 / 715.952)
=0.3881865 / 0.36412357
=1.0661

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)
=((556.373 + 168.498) / 2277.695) / ((268.5 + 46.972) / 755.202)
=0.31824761 / 0.41773194
=0.7618

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
=(42.845 - 17.205 - 68.101) / 2277.695
=-0.0186

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.

FirstCash Inc has a M-score of -0.53 signals that the company is likely to 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 local exchange's currency.

FirstCash Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.62950.63440.9591.07211.11630.82751.2280.9940.95021.0001
GMI 1.00061.01981.02391.03210.99711.03790.9931.01330.99451.0129
AQI 1.28670.99370.96730.77550.82460.88791.66271.16091.0660.9924
SGI 1.18411.17931.14411.13231.16081.21961.15191.11611.07870.9884
DEPI 0.95070.95850.95391.2091.23311.16841.06910.98150.9340.968
SGAI 0.99510.96760.94250.9670.99310.90331.00851.03891.01831.0467
LVGI 2.00841.73631.52080.37930.66450.94292.82111.27931.03331.0779
TATA -0.02060.0671-0.3008-0.141-0.0475-0.0069-0.0166-0.0395-0.0354-0.0629
M-score -2.05-2.57-3.96-2.80-2.39-2.45-2.54-2.59-2.62-2.82

FirstCash Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.99461.05470.95020.93130.96560.90741.00011.11141.06492.8657
GMI 1.02961.0040.99450.99660.99161.00281.01291.01221.01061.0069
AQI 0.97811.00611.0661.07111.10321.04190.99241.05841.02411.1091
SGI 1.10571.0681.07871.07221.041.02970.98840.98981.00651.1422
DEPI 0.98520.98570.9340.93370.93180.91230.9681.03311.04711.7252
SGAI 1.01831.03351.01831.01591.03041.02721.04691.0551.04851.0661
LVGI 1.02841.10681.03331.0241.12551.09971.07791.08041.00740.7618
TATA -0.0385-0.0315-0.0354-0.0529-0.0466-0.0654-0.0629-0.0652-0.0676-0.0186
M-score -2.58-2.55-2.62-2.72-2.71-2.87-2.82-2.69-2.72-0.53
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