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CSX Corp (FRA:CXR)
Beneish M-Score
-2.70 (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 -2.60 suggests that the company is not a manipulator.

FRA:CXR' s 10-Year Beneish M-Score Range
Min: -3.54   Max: -1.14
Current: -2.7

-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 * 1.0626+0.528 * 1.0185+0.404 * 1.0581+0.892 * 0.9783+0.115 * 0.9963
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0204+4.679 * -0.0433-0.327 * 0.958
=-2.60

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was €778 Mil.
Revenue was 2184.19144307 + 2202.64317181 + 2198.68035191 + 2344.53781513 = €8,930 Mil.
Gross Profit was 1331.3995649 + 1369.30983847 + 1409.09090909 + 1540.10695187 = €5,650 Mil.
Total Current Assets was €1,660 Mil.
Total Assets was €22,973 Mil.
Property, Plant and Equipment(Net PPE) was €19,938 Mil.
Depreciation, Depletion and Amortization(DDA) was €825 Mil.
Selling, General & Admin. Expense(SGA) was €2,639 Mil.
Total Current Liabilities was €1,604 Mil.
Long-Term Debt was €6,542 Mil.
Net Income was 288.614938361 + 298.825256975 + 339.442815249 + 408.708938121 = €1,336 Mil.
Non Operating Income was 5.07614213198 + -5.87371512482 + 3.66568914956 + 6.87547746371 = €10 Mil.
Cash Flow from Operations was 434.372733865 + 563.876651982 + 674.486803519 + 647.82276547 = €2,321 Mil.
Accounts Receivable was €748 Mil.
Revenue was 2272.2392638 + 2173.68421053 + 2231.30300694 + 2450.77298617 = €9,128 Mil.
Gross Profit was 1470.09202454 + 1378.94736842 + 1446.41480339 + 1586.65581774 = €5,882 Mil.
Total Current Assets was €1,969 Mil.
Total Assets was €23,456 Mil.
Property, Plant and Equipment(Net PPE) was €20,160 Mil.
Depreciation, Depletion and Amortization(DDA) was €831 Mil.
Selling, General & Admin. Expense(SGA) was €2,643 Mil.
Total Current Liabilities was €1,897 Mil.
Long-Term Debt was €6,784 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)
=(778.100072516 / 8930.05278191) / (748.466257669 / 9127.99946744)
=0.08713275 / 0.08199675
=1.0626

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)
=(1369.30983847 / 9127.99946744) / (1331.3995649 / 8930.05278191)
=0.64440298 / 0.63268464
=1.0185

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 - (1659.89847716 + 19937.6359681) / 22973.168963) / (1 - (1968.55828221 + 20159.5092025) / 23455.5214724)
=0.05988005 / 0.05659452
=1.0581

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
=8930.05278191 / 9127.99946744
=0.9783

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))
=(831.440417401 / (831.440417401 + 20159.5092025)) / (825.462572963 / (825.462572963 + 19937.6359681))
=0.03960947 / 0.03975623
=0.9963

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)
=(2638.59710918 / 8930.05278191) / (2643.11185311 / 9127.99946744)
=0.29547385 / 0.28956091
=1.0204

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)
=((6541.6968818 + 1604.06091371) / 22973.168963) / ((6783.74233129 + 1897.2392638) / 23455.5214724)
=0.35457702 / 0.37010397
=0.958

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
=(1335.59194871 - 9.74359362044 - 2320.55895484) / 22973.168963
=-0.0433

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 -2.60 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.96590.96750.87990.95370.84031.11890.84830.91211.11210.9237
GMI 0.98610.93260.92181.00230.98350.96981.04451.03130.99160.9996
AQI 0.23921.03990.87170.81030.92981.01331.13391.00871.05041.0617
SGI 0.9941.15841.03740.92461.24750.74591.25561.14430.97160.9983
DEPI 1.2670.890.99711.01351.00951.03220.98451.01750.96281.0047
SGAI 2.67840.97371.08110.95370.76621.27230.93760.93860.98671.0085
LVGI 0.930.85690.94181.1411.05370.96231.03651.02280.98940.9459
TATA -0.04790.0052-0.0335-0.0345-0.0613-0.0342-0.0613-0.0575-0.0375-0.0442
M-score -3.29-2.33-2.80-2.86-2.71-2.80-2.60-2.68-2.56-2.72

CSX Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.97721.09031.04910.96811.00840.81890.79280.8230.93151.0626
GMI 1.00271.00090.99630.96960.99120.98680.9860.99210.99921.0185
AQI 1.00870.99941.00110.99071.05041.04741.08391.0831.06171.0581
SGI 1.06811.09481.13221.10861.07151.0360.98610.97460.990.9783
DEPI 1.08821.10841.10691.0070.87590.9330.91470.95871.01310.9963
SGAI 0.93870.94670.95890.97590.98630.99621.00391.00211.00831.0204
LVGI 1.02281.07491.01420.99220.98940.96310.96440.94670.94590.958
TATA -0.054-0.0521-0.0426-0.0462-0.0388-0.047-0.0454-0.043-0.0449-0.0433
M-score -2.67-2.56-2.50-2.64-2.58-2.82-2.87-2.83-2.72-2.60
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