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CSX Corp (FRA:CXR)
Beneish M-Score
-2.71 (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 -2.42 suggests that the company is not a manipulator.

FRA:CXR' s 10-Year Beneish M-Score Range
Min: -12.93   Max: 17.29
Current: -2.71

-12.93
17.29

During the past 13 years, the highest Beneish M-Score of CSX Corp was 17.29. The lowest was -12.93. 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 * 1.1426+0.528 * 0.9632+0.404 * 0.9226+0.892 * 1.1499+0.115 * 1.1668
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0398+4.679 * -0.0376-0.327 * 0.9824
=-2.42

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was €1,019 Mil.
Revenue was 2797.59704251 + 2588.80778589 + 2498.83630721 + 2387.04930096 = €10,272 Mil.
Gross Profit was 1864.14048059 + 1703.16301703 + 1638.47944143 + 1540.10301692 = €6,746 Mil.
Total Current Assets was €2,271 Mil.
Total Assets was €30,648 Mil.
Property, Plant and Equipment(Net PPE) was €26,684 Mil.
Depreciation, Depletion and Amortization(DDA) was €945 Mil.
Selling, General & Admin. Expense(SGA) was €3,158 Mil.
Total Current Liabilities was €1,884 Mil.
Long-Term Debt was €8,792 Mil.
Net Income was 408.502772643 + 398.215733982 + 394.879751746 + 389.256806475 = €1,591 Mil.
Non Operating Income was 1.84842883549 + 1.62206001622 + -20.1706749418 + -8.83002207506 = €-26 Mil.
Cash Flow from Operations was 637.707948244 + 844.282238443 + 664.85647789 + 622.516556291 = €2,769 Mil.
Accounts Receivable was €776 Mil.
Revenue was 2177.87418655 + 2209.91253644 + 2235.95505618 + 2309.3252464 = €8,933 Mil.
Gross Profit was 1327.54880694 + 1382.65306122 + 1429.21348315 + 1510.99317665 = €5,650 Mil.
Total Current Assets was €1,655 Mil.
Total Assets was €22,907 Mil.
Property, Plant and Equipment(Net PPE) was €19,880 Mil.
Depreciation, Depletion and Amortization(DDA) was €826 Mil.
Selling, General & Admin. Expense(SGA) was €2,641 Mil.
Total Current Liabilities was €1,599 Mil.
Long-Term Debt was €6,523 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)
=(1019.40850277 / 10272.2904366) / (775.849602314 / 8933.06702557)
=0.09923868 / 0.08685143
=1.1426

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)
=(1703.16301703 / 8933.06702557) / (1864.14048059 / 10272.2904366)
=0.63252727 / 0.65670709
=0.9632

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 - (2270.7948244 + 26683.9186691) / 30647.8743068) / (1 - (1655.09761388 + 19879.9710774) / 22906.7245119)
=0.05524562 / 0.05988005
=0.9226

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
=10272.2904366 / 8933.06702557
=1.1499

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))
=(826.178184832 / (826.178184832 + 19879.9710774)) / (944.783050525 / (944.783050525 + 26683.9186691))
=0.03990014 / 0.03419571
=1.1668

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)
=(3157.78428101 / 10272.2904366) / (2640.91055411 / 8933.06702557)
=0.307408 / 0.29563313
=1.0398

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)
=((8792.05175601 + 1883.54898336) / 30647.8743068) / ((6522.77657267 + 1599.42154736) / 22906.7245119)
=0.34833087 / 0.35457702
=0.9824

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
=(1590.85506485 - -25.5302081652 - 2769.36322087) / 30647.8743068
=-0.0376

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 -2.42 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.04360.81990.79190.82310.90811.05291.09381.15531.11881.1426
GMI 0.99120.98690.98710.9940.99941.01871.02511.01390.99760.9632
AQI 1.05041.04741.08391.0831.06171.05811.03311.03080.96560.9226
SGI 1.07071.04591.00060.98950.99440.97770.99611.02621.06741.1499
DEPI 0.90550.9340.91190.95620.98850.98741.01461.05511.09921.1668
SGAI 0.98620.99641.00581.00521.00871.02071.01311.00981.02811.0398
LVGI 0.98940.96310.96440.94670.94590.9580.96390.99830.97620.9824
TATA -0.0383-0.0467-0.0464-0.0432-0.0456-0.0437-0.0412-0.0343-0.04-0.0376
M-score -2.55-2.81-2.86-2.81-2.74-2.61-2.55-2.45-2.50-2.42
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