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CSX Corp (FRA:CXR)
Beneish M-Score
-2.62 (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.

CSX Corp has a M-score of -2.50 suggests that the company is not a manipulator.

FRA:CXR' s 10-Year Beneish M-Score Range
Min: -3.54   Max: -1.14
Current: -2.62

-3.54
-1.14

During the past 13 years, the highest Beneish M-Score of CSX Corp was -1.14. The lowest was -3.54. And the median was -2.62.


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 CSX Corp 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 * 1.1188+0.528 * 0.9976+0.404 * 0.9656+0.892 * 1.0674+0.115 * 1.0992
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0281+4.679 * -0.04-0.327 * 0.9762
=-2.50

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was €916 Mil.
Revenue was 2588.80778589 + 2498.83630721 + 2387.04930096 + 2177.87418655 = €9,653 Mil.
Gross Profit was 1703.16301703 + 1638.47944143 + 1540.10301692 + 1327.54880694 = €6,209 Mil.
Total Current Assets was €2,086 Mil.
Total Assets was €26,807 Mil.
Property, Plant and Equipment(Net PPE) was €23,182 Mil.
Depreciation, Depletion and Amortization(DDA) was €877 Mil.
Selling, General & Admin. Expense(SGA) was €2,903 Mil.
Total Current Liabilities was €1,709 Mil.
Long-Term Debt was €7,716 Mil.
Net Income was 398.215733982 + 394.879751746 + 389.256806475 + 287.780187997 = €1,470 Mil.
Non Operating Income was 1.62206001622 + -20.1706749418 + -8.83002207506 + 5.06146059291 = €-22 Mil.
Cash Flow from Operations was 844.282238443 + 664.85647789 + 622.516556291 + 433.116413594 = €2,565 Mil.
Accounts Receivable was €767 Mil.
Revenue was 2209.91253644 + 2235.95505618 + 2309.3252464 + 2288.03088803 = €9,043 Mil.
Gross Profit was 1382.65306122 + 1429.21348315 + 1510.99317665 + 1480.30888031 = €5,803 Mil.
Total Current Assets was €1,897 Mil.
Total Assets was €23,165 Mil.
Property, Plant and Equipment(Net PPE) was €19,891 Mil.
Depreciation, Depletion and Amortization(DDA) was €830 Mil.
Selling, General & Admin. Expense(SGA) was €2,645 Mil.
Total Current Liabilities was €1,767 Mil.
Long-Term Debt was €6,576 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)
=(915.652879157 / 9652.56758061) / (766.763848397 / 9043.22372705)
=0.09486107 / 0.08478877
=1.1188

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)
=(1638.47944143 / 9043.22372705) / (1703.16301703 / 9652.56758061)
=0.64171459 / 0.64327903
=0.9976

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 - (2085.96918086 + 23182.4817518) / 26806.9748581) / (1 - (1896.50145773 + 19891.3994169) / 23164.7230321)
=0.05739267 / 0.05943616
=0.9656

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
=9652.56758061 / 9043.22372705
=1.0674

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))
=(830.044772213 / (830.044772213 + 19891.3994169)) / (876.767418404 / (876.767418404 + 23182.4817518))
=0.04005728 / 0.03644201
=1.0992

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)
=(2902.56878468 / 9652.56758061) / (2644.94241367 / 9043.22372705)
=0.30070432 / 0.29247783
=1.0281

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)
=((7716.13949716 + 1708.84022709) / 26806.9748581) / ((6575.80174927 + 1766.7638484) / 23164.7230321)
=0.35158685 / 0.36014096
=0.9762

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
=(1470.1324802 - -22.3171764077 - 2564.77168622) / 26806.9748581
=-0.04

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.

CSX Corp has a M-score of -2.50 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.

CSX Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.96750.87990.95370.84031.11890.84830.91211.11210.92371.0187
GMI 0.93260.92180.93771.05110.96981.04451.03130.99160.99960.9983
AQI 1.03990.87170.81030.92981.01331.13391.00871.05041.06170.9656
SGI 1.21110.99660.95131.20930.74431.29651.111.00480.97761.1722
DEPI 0.890.99711.01351.00951.03220.98451.01750.96281.00471.0044
SGAI 0.97370.92170.9720.88191.27230.93760.93860.98671.00851.0267
LVGI 0.85690.94181.1411.05370.96231.03651.02280.98940.94590.9762
TATA 0.0052-0.0335-0.0345-0.0613-0.0342-0.0613-0.0575-0.0375-0.0442-0.042
M-score -2.28-2.81-2.88-2.72-2.80-2.57-2.71-2.53-2.74-2.52

CSX Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.99231.04360.81990.79190.82310.90811.05291.09381.15531.1188
GMI 0.96940.99120.98690.98710.9940.99941.01871.02511.01390.9976
AQI 0.99071.05041.04741.08391.0831.06171.05811.03311.03080.9656
SGI 1.08991.07071.04591.00060.98950.99440.97770.99611.02621.0674
DEPI 1.0310.90550.9340.91190.95620.98850.98741.01461.05511.0992
SGAI 0.97560.98620.99641.00581.00521.00871.02071.01311.00981.0281
LVGI 0.99220.98940.96310.96440.94670.94590.9580.96390.99830.9762
TATA -0.0454-0.0383-0.0467-0.0464-0.0432-0.0456-0.0437-0.0412-0.0343-0.04
M-score -2.63-2.55-2.81-2.86-2.81-2.74-2.61-2.55-2.45-2.50
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