Switch to:
CSX Corp (FRA:CXR)
Beneish M-Score
-2.84 (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 -2.84 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: -2.84

-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 * 1.0179+0.528 * 0.9713+0.404 * 0.9076+0.892 * 0.906+0.115 * 0.9545
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0329+4.679 * -0.0505-0.327 * 0.9923
=-2.84

* 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 €824 Mil.
Revenue was 2414.6841308 + 2406.5503738 + 2350.93390805 + 2553.01569815 = €9,725 Mil.
Gross Profit was 1714.33663013 + 1698.11320755 + 1628.05316092 + 1746.07546131 = €6,787 Mil.
Total Current Assets was €1,927 Mil.
Total Assets was €30,902 Mil.
Property, Plant and Equipment(Net PPE) was €27,428 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,137 Mil.
Selling, General & Admin. Expense(SGA) was €2,794 Mil.
Total Current Liabilities was €2,016 Mil.
Long-Term Debt was €8,810 Mil.
Net Income was 405.417446316 + 396.048415806 + 319.683908046 + 427.797668227 = €1,549 Mil.
Non Operating Income was 11.583355609 + 7.11997152011 + 6.28591954023 + 77.1137427706 = €102 Mil.
Cash Flow from Operations was 798.360509668 + 745.817016732 + 677.083333333 + 787.661801157 = €3,009 Mil.
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 €2,986 Mil.
Total Current Liabilities was €1,713 Mil.
Long-Term Debt was €8,989 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)
=(824.200302949 / 9725.1841108) / (893.700436603 / 10734.4665789)
=0.08474907 / 0.08325523
=1.0179

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)
=(7276.13365819 / 10734.4665789) / (6786.57845991 / 9725.1841108)
=0.67782908 / 0.69783547
=0.9713

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 - (1927.29216787 + 27427.6040274) / 30901.7196828) / (1 - (2229.35044106 + 26407.3777065) / 30308.2954647)
=0.05005623 / 0.05515214
=0.9076

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
=9725.1841108 / 10734.4665789
=0.906

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))
=(1043.27382237 / (1043.27382237 + 26407.3777065)) / (1137.42152062 / (1137.42152062 + 27427.6040274))
=0.03800543 / 0.03981868
=0.9545

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)
=(2793.86760537 / 9725.1841108) / (2985.72166329 / 10734.4665789)
=0.28728172 / 0.27814346
=1.0329

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)
=((8810.47848169 + 2016.39490332) / 30901.7196828) / ((8988.6839526 + 1712.55457543) / 30308.2954647)
=0.35036475 / 0.35307952
=0.9923

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
=(1548.9474384 - 102.10298944 - 3008.92266089) / 30901.7196828
=-0.0505

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 -2.84 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 local exchange's currency.

CSX Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.87990.95370.84031.11890.84830.90811.1170.92371.01870.933
GMI 0.81990.93771.05110.91221.11051.02870.99410.99960.99830.9391
AQI 0.87170.81030.92981.01331.13391.00871.05041.06170.96560.8681
SGI 0.99670.95151.20870.74471.29641.11490.99990.97811.1721.0553
DEPI 0.99711.01351.00951.03220.98451.01750.96281.00471.00441.0056
SGAI 0.76760.9720.88191.10750.95610.93710.98541.01631.02151.045
LVGI 0.94181.1411.05370.96231.03651.02280.98940.94590.97621.0206
TATA -0.0335-0.0345-0.0613-0.0342-0.0613-0.0564-0.0375-0.0442-0.042-0.043
M-score -2.84-2.88-2.73-2.80-2.54-2.70-2.53-2.74-2.52-2.79

CSX Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.09411.15531.11831.14230.9890.88610.88840.80960.95291.0179
GMI 1.02511.01390.99760.96320.94060.93680.94030.95050.9680.9713
AQI 1.03311.03080.96560.92260.9170.92130.86810.89380.90240.9076
SGI 0.99631.02661.06761.151.1781.15731.10830.99810.93540.906
DEPI 1.01481.05511.09881.16651.0570.98690.95880.87780.93530.9545
SGAI 1.01341.00671.02321.03391.05681.06381.04421.0321.0241.0329
LVGI 0.96390.99830.97620.98241.00390.99141.02061.01261.00250.9923
TATA -0.0412-0.0343-0.04-0.0376-0.041-0.045-0.0424-0.0478-0.05-0.0505
M-score -2.55-2.45-2.50-2.42-2.59-2.73-2.79-2.97-2.88-2.84
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK