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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 -2.88 suggests that the company is not a manipulator.

FRA:CXR' s Beneish M-Score Range Over the Past 10 Years
Min: -11.33   Max: 1.19
Current: -2.87

-11.33
1.19

During the past 13 years, the highest Beneish M-Score of CSX Corp was 1.19. The lowest was -11.33. And the median was -2.70.


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 * 0.9529+0.528 * 0.968+0.404 * 0.9024+0.892 * 0.9354+0.115 * 0.9353
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.024+4.679 * -0.05-0.327 * 1.0025
=-2.88

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was €812 Mil.
Revenue was 2406.5503738 + 2350.93390805 + 2553.01569815 + 2618.72939499 = €9,929 Mil.
Gross Profit was 1698.11320755 + 1628.05316092 + 1746.07546131 + 1801.65731088 = €6,874 Mil.
Total Current Assets was €1,983 Mil.
Total Assets was €30,749 Mil.
Property, Plant and Equipment(Net PPE) was €27,240 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,120 Mil.
Selling, General & Admin. Expense(SGA) was €2,816 Mil.
Total Current Liabilities was €2,031 Mil.
Long-Term Debt was €8,815 Mil.
Net Income was 396.048415806 + 319.683908046 + 427.797668227 + 451.750868752 = €1,595 Mil.
Non Operating Income was 7.11997152011 + 6.28591954023 + 77.1137427706 + 1.78205470908 = €92 Mil.
Cash Flow from Operations was 745.817016732 + 677.083333333 + 787.661801157 + 828.655439722 = €3,039 Mil.
Accounts Receivable was €911 Mil.
Revenue was 2730.10781431 + 2796.82158366 + 2588.80778589 + 2499.41801816 = €10,615 Mil.
Gross Profit was 1907.68956607 + 1863.62376421 + 1703.16301703 + 1638.86086754 = €7,113 Mil.
Total Current Assets was €2,378 Mil.
Total Assets was €30,096 Mil.
Property, Plant and Equipment(Net PPE) was €26,063 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,000 Mil.
Selling, General & Admin. Expense(SGA) was €2,940 Mil.
Total Current Liabilities was €1,584 Mil.
Long-Term Debt was €9,006 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)
=(811.676753293 / 9929.22937499) / (910.62995634 / 10615.155202)
=0.0817462 / 0.08578584
=0.9529

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)
=(7113.33721485 / 10615.155202) / (6873.89914065 / 9929.22937499)
=0.67011147 / 0.69228929
=0.968

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 - (1982.91206835 + 27240.1210395) / 30749.3770025) / (1 - (2378.15200927 + 26062.5501203) / 30096.2309543)
=0.04963821 / 0.05500785
=0.9024

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
=9929.22937499 / 10615.155202
=0.9354

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))
=(999.992516061 / (999.992516061 + 26062.5501203)) / (1120.49200088 / (1120.49200088 + 27240.1210395))
=0.03695117 / 0.03950874
=0.9353

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)
=(2816.14328924 / 9929.22937499) / (2940.18267744 / 10615.155202)
=0.28362154 / 0.27697972
=1.024

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)
=((8815.41473834 + 2030.97187611) / 30749.3770025) / ((9005.61347233 + 1584.24663637) / 30096.2309543)
=0.35273517 / 0.35186665
=1.0025

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
=(1595.28086083 - 92.30168854 - 3039.21759094) / 30749.3770025
=-0.05

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 -2.88 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 0.87990.95370.84031.11890.84831.02980.85111.0691.01870.933
GMI 0.99250.82850.98290.90951.0061.14190.99190.99920.99830.9391
AQI 0.87170.81030.92981.00771.14021.00421.06021.05640.96560.9443
SGI 0.99670.95151.20870.74471.29641.111.00380.97871.1721.0553
DEPI 0.99711.01351.00951.03310.98371.01750.96281.00471.00441.0056
SGAI 0.920.81090.88191.10750.95610.94130.98171.01571.02151.045
LVGI 0.94181.1411.05370.9571.04221.02990.98590.94270.97621.0256
TATA -0.0335-0.0369-0.0536-0.0344-0.0607-0.0572-0.0378-0.0442-0.042-0.0426
M-score -2.77-2.92-2.73-2.80-2.59-2.54-2.77-2.60-2.52-2.76

CSX Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.05151.09671.16061.11841.14290.98760.88390.88840.80960.9529
GMI 1.01781.02641.01660.99760.96350.93980.93550.94030.95050.968
AQI 1.05811.03311.03080.96560.92260.9170.92130.94430.89380.9024
SGI 0.97920.9941.02191.06751.14941.17961.16031.10830.99810.9354
DEPI 0.98761.01481.05511.09881.16651.0570.98690.95880.87780.9353
SGAI 1.02661.01581.01131.02331.03441.05531.06111.04421.0321.024
LVGI 0.9580.96390.99830.97620.98241.00390.99141.02561.01261.0025
TATA -0.0436-0.0416-0.0348-0.04-0.0376-0.041-0.045-0.042-0.0478-0.05
M-score -2.61-2.55-2.45-2.50-2.42-2.59-2.73-2.76-2.97-2.88
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