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CSX Corp (FRA:CXR)
Beneish M-Score
-2.87 (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 -2.73 suggests that the company is not a manipulator.

FRA:CXR' s Beneish M-Score Range Over the Past 10 Years
Min: -11.5   Max: 0.9
Current: -2.87

-11.5
0.9

During the past 13 years, the highest Beneish M-Score of CSX Corp was 0.90. The lowest was -11.50. And the median was -2.63.


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 * 0.8861+0.528 * 0.9368+0.404 * 0.9213+0.892 * 1.1573+0.115 * 0.9869
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0643+4.679 * -0.045-0.327 * 0.9914
=-2.73

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was €894 Mil.
Revenue was 2618.72939499 + 2730.10781431 + 2796.82158366 + 2588.80778589 = €10,734 Mil.
Gross Profit was 1801.65731088 + 1907.68956607 + 1863.62376421 + 1703.16301703 = €7,276 Mil.
Total Current Assets was €2,229 Mil.
Total Assets was €30,308 Mil.
Property, Plant and Equipment(Net PPE) was €26,407 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,043 Mil.
Selling, General & Admin. Expense(SGA) was €3,073 Mil.
Total Current Liabilities was €1,713 Mil.
Long-Term Debt was €8,989 Mil.
Net Income was 451.750868752 + 492.738127061 + 408.389540793 + 398.215733982 = €1,751 Mil.
Non Operating Income was 1.78205470908 + 3.56410941816 + 1.84791647418 + 1.62206001622 = €9 Mil.
Cash Flow from Operations was 828.655439722 + 794.796400249 + 637.531183591 + 844.282238443 = €3,105 Mil.
Accounts Receivable was €871 Mil.
Revenue was 2499.41801816 + 2387.57635976 + 2177.7167233 + 2210.39585915 = €9,275 Mil.
Gross Profit was 1638.86086754 + 1540.44307058 + 1327.45282337 + 1382.95545673 = €5,890 Mil.
Total Current Assets was €2,077 Mil.
Total Assets was €25,315 Mil.
Property, Plant and Equipment(Net PPE) was €21,723 Mil.
Depreciation, Depletion and Amortization(DDA) was €847 Mil.
Selling, General & Admin. Expense(SGA) was €2,494 Mil.
Total Current Liabilities was €1,731 Mil.
Long-Term Debt was €7,284 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)
=(893.700436603 / 10734.4665789) / (871.420811671 / 9275.10696037)
=0.08325523 / 0.09395264
=0.8861

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)
=(1907.68956607 / 9275.10696037) / (1801.65731088 / 10734.4665789)
=0.63500208 / 0.67782908
=0.9368

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 - (2229.35044106 + 26407.3777065) / 30308.2954647) / (1 - (2076.51121285 + 21722.6662528) / 25314.6581827)
=0.05515214 / 0.05986574
=0.9213

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
=10734.4665789 / 9275.10696037
=1.1573

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))
=(846.508394138 / (846.508394138 + 21722.6662528)) / (1043.27382237 / (1043.27382237 + 26407.3777065))
=0.03750728 / 0.03800543
=0.9869

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)
=(3072.50187416 / 10734.4665789) / (2494.31674052 / 9275.10696037)
=0.28622772 / 0.26892593
=1.0643

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)
=((8988.6839526 + 1712.55457543) / 30308.2954647) / ((7284.08473656 + 1731.2019865) / 25314.6581827)
=0.35307952 / 0.35612911
=0.9914

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
=(1751.09427059 - 8.81614061763 - 3105.265262) / 30308.2954647
=-0.045

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 -2.73 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.87990.95370.84031.11890.84830.91211.11210.92371.01870
GMI 0.81990.93771.05110.91221.11051.03130.99160.99960.99830.9391
AQI 0.87170.81030.92981.01331.13391.00871.05041.06170.96560.9443
SGI 0.99670.95151.20870.74471.29641.111.00440.97811.1721.0553
DEPI 0.99711.01351.00951.03220.98451.01750.96281.00471.00441.0056
SGAI 0.76760.9720.88191.10750.95610.94130.98111.01631.02151.045
LVGI 0.94181.1411.05370.96231.03651.02280.98940.94590.97621.0256
TATA -0.0335-0.0345-0.0613-0.0342-0.0613-0.0575-0.0375-0.0442-0.042-0.0428
M-score -2.84-2.88-2.73-2.80-2.54-2.71-2.53-2.74-2.52-3.62

CSX Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.82310.90861.05311.09411.15531.11831.14230.9890.88610
GMI 0.9940.99951.01871.02511.01390.99760.96320.94060.93680.9403
AQI 1.0831.06171.05811.03311.03080.96560.92260.9170.92130.9443
SGI 0.98910.99430.97770.99631.02661.06761.151.1781.15731.1083
DEPI 0.95630.9890.98761.01481.05511.09881.16651.0570.98690.9588
SGAI 1.011.01421.0261.01121.00381.02751.03551.0571.06431.0101
LVGI 0.94670.94590.9580.96390.99830.97620.98241.00390.99141.0256
TATA -0.0432-0.0456-0.0437-0.0412-0.0343-0.04-0.0376-0.041-0.045-0.0422
M-score -2.81-2.74-2.61-2.55-2.45-2.50-2.42-2.59-2.73-3.57
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