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CSX Corp (FRA:CXR)
Beneish M-Score
-2.53 (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 -2.56 suggests that the company is not a manipulator.

FRA:CXR' s 10-Year Beneish M-Score Range
Min: -4.35   Max: -1.14
Current: -2.53

-4.35
-1.14

During the past 13 years, the highest Beneish M-Score of CSX Corp was -1.14. The lowest was -4.35. 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 * 1.0901+0.528 * 1.0266+0.404 * 1.0331+0.892 * 0.9964+0.115 * 1.0089
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0156+4.679 * -0.0412-0.327 * 0.9639
=-2.56

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was €785 Mil.
Revenue was 2397.63488544 + 2181.02824041 + 2202.64317181 + 2198.68035191 = €8,980 Mil.
Gross Profit was 1546.93274205 + 1329.47139754 + 1369.30983847 + 1409.09090909 = €5,655 Mil.
Total Current Assets was €1,753 Mil.
Total Assets was €23,633 Mil.
Property, Plant and Equipment(Net PPE) was €20,462 Mil.
Depreciation, Depletion and Amortization(DDA) was €826 Mil.
Selling, General & Admin. Expense(SGA) was €2,653 Mil.
Total Current Liabilities was €2,067 Mil.
Long-Term Debt was €6,216 Mil.
Net Income was 390.983000739 + 288.196958726 + 298.825256975 + 339.442815249 = €1,317 Mil.
Non Operating Income was -8.86917960089 + 5.06879073135 + -5.87371512482 + 3.66568914956 = €-6 Mil.
Cash Flow from Operations was 625.277161863 + 433.743664012 + 563.876651982 + 674.486803519 = €2,297 Mil.
Accounts Receivable was €723 Mil.
Revenue was 2344.53781513 + 2268.40490798 + 2168.42105263 + 2231.30300694 = €9,013 Mil.
Gross Profit was 1540.10695187 + 1466.25766871 + 1373.68421053 + 1446.41480339 = €5,826 Mil.
Total Current Assets was €1,901 Mil.
Total Assets was €23,591 Mil.
Property, Plant and Equipment(Net PPE) was €20,320 Mil.
Depreciation, Depletion and Amortization(DDA) was €828 Mil.
Selling, General & Admin. Expense(SGA) was €2,622 Mil.
Total Current Liabilities was €1,847 Mil.
Long-Term Debt was €6,731 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)
=(784.922394678 / 8979.98664956) / (722.68907563 / 9012.66678267)
=0.08740797 / 0.08018593
=1.0901

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)
=(1329.47139754 / 9012.66678267) / (1546.93274205 / 8979.98664956)
=0.64647499 / 0.62971195
=1.0266

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 - (1753.14116778 + 20461.9364375) / 23632.6681449) / (1 - (1901.45148969 + 20320.091673) / 23591.2910619)
=0.05998436 / 0.05806159
=1.0331

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
=8979.98664956 / 9012.66678267
=0.9964

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))
=(828.293274973 / (828.293274973 + 20320.091673)) / (826.438602905 / (826.438602905 + 20461.9364375))
=0.03916579 / 0.03882112
=1.0089

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)
=(2652.90259309 / 8979.98664956) / (2621.66864309 / 9012.66678267)
=0.29542389 / 0.29088712
=1.0156

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)
=((6215.81670362 + 2067.25794531) / 23632.6681449) / ((6731.09243697 + 1847.21161192) / 23591.2910619)
=0.35049257 / 0.36362164
=0.9639

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
=(1317.44803169 - -6.00841484479 - 2297.38428138) / 23632.6681449
=-0.0412

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 -2.56 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 0.9550.97860.87990.95370.84031.11890.84831.02980.85111.069
GMI 0.97781.05740.89210.92170.98290.90951.05721.03411.04230.9992
AQI 0.23821.04390.87170.81030.92981.00771.14021.00421.06021.0564
SGI 0.99151.16131.03740.92461.24750.74591.25561.14430.9710.9989
DEPI 1.2670.890.99711.01351.00951.03310.98371.01750.96281.0047
SGAI 2.71941.15160.76760.9720.88191.10751.0770.93860.98731.0079
LVGI 0.92950.85730.94181.1411.05370.9571.04221.02990.98590.9427
TATA -0.08340.0052-0.0335-0.0369-0.0536-0.0344-0.0607-0.0572-0.0378-0.0442
M-score -3.48-2.28-2.76-2.92-2.69-2.80-2.62-2.57-2.77-2.58

CSX Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.09031.04910.96810.77170.81970.79360.82381.07851.06041.0901
GMI 1.08371.05321.06151.01721.01211.01031.00470.99921.01791.0266
AQI 0.99941.00110.99071.06021.04741.08391.0831.05641.05811.0331
SGI 1.09481.13221.10861.07091.0350.98510.97360.99010.97890.9964
DEPI 1.10731.10691.0070.87590.9330.91470.95871.01310.99531.0089
SGAI 0.9190.90540.90.98690.99711.00491.00311.00821.01941.0156
LVGI 1.07491.01420.99220.98590.96310.96440.94670.94270.9580.9639
TATA -0.0517-0.0424-0.046-0.0392-0.0473-0.0457-0.0434-0.045-0.0434-0.0412
M-score -2.51-2.46-2.58-2.78-2.81-2.86-2.82-2.59-2.60-2.56
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