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CSX Corp (FRA:CXR)
Beneish M-Score
-2.94 (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 -2.97 suggests that the company is not a manipulator.

FRA:CXR' s Beneish M-Score Range Over the Past 10 Years
Min: -11.39   Max: 1.11
Current: -2.94

-11.39
1.11

During the past 13 years, the highest Beneish M-Score of CSX Corp was 1.11. The lowest was -11.39. And the median was -2.69.


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 * 0.8096+0.528 * 0.9505+0.404 * 0.8938+0.892 * 0.9981+0.115 * 0.8778
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.032+4.679 * -0.0478-0.327 * 1.0126
=-2.97

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was €823 Mil.
Revenue was 2350.93390805 + 2553.01569815 + 2618.72939499 + 2730.10781431 = €10,253 Mil.
Gross Profit was 1628.05316092 + 1746.07546131 + 1801.65731088 + 1907.68956607 = €7,083 Mil.
Total Current Assets was €2,342 Mil.
Total Assets was €31,079 Mil.
Property, Plant and Equipment(Net PPE) was €27,203 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,103 Mil.
Selling, General & Admin. Expense(SGA) was €2,885 Mil.
Total Current Liabilities was €1,519 Mil.
Long-Term Debt was €9,443 Mil.
Net Income was 319.683908046 + 427.797668227 + 451.750868752 + 492.738127061 = €1,692 Mil.
Non Operating Income was 6.28591954023 + 77.1137427706 + 1.78205470908 + 3.56410941816 = €89 Mil.
Cash Flow from Operations was 677.083333333 + 787.661801157 + 828.655439722 + 794.796400249 = €3,088 Mil.
Accounts Receivable was €1,019 Mil.
Revenue was 2796.82158366 + 2588.80778589 + 2499.41801816 + 2387.57635976 = €10,273 Mil.
Gross Profit was 1863.62376421 + 1703.16301703 + 1638.86086754 + 1540.44307058 = €6,746 Mil.
Total Current Assets was €2,270 Mil.
Total Assets was €30,639 Mil.
Property, Plant and Equipment(Net PPE) was €26,677 Mil.
Depreciation, Depletion and Amortization(DDA) was €945 Mil.
Selling, General & Admin. Expense(SGA) was €2,801 Mil.
Total Current Liabilities was €1,883 Mil.
Long-Term Debt was €8,790 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)
=(823.45545977 / 10252.7868155) / (1019.12593551 / 10272.6237475)
=0.08031528 / 0.09920795
=0.8096

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)
=(1746.07546131 / 10272.6237475) / (1628.05316092 / 10252.7868155)
=0.65670571 / 0.69088294
=0.9505

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 - (2341.95402299 + 27202.7658046) / 31079.3821839) / (1 - (2270.16538852 + 26676.5222212) / 30639.3791001)
=0.04937879 / 0.05524562
=0.8938

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
=10252.7868155 / 10272.6237475
=0.9981

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))
=(944.806661113 / (944.806661113 + 26676.5222212)) / (1103.00031553 / (1103.00031553 + 27202.7658046))
=0.03420569 / 0.03896734
=0.8778

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)
=(2884.63352316 / 10252.7868155) / (2800.5072046 / 10272.6237475)
=0.28135117 / 0.27261849
=1.032

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)
=((9443.24712644 + 1519.39655172) / 31079.3821839) / ((8789.61470942 + 1883.02688718) / 30639.3791001)
=0.35273042 / 0.34833087
=1.0126

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
=(1691.97057209 - 88.7458264381 - 3088.19697446) / 31079.3821839
=-0.0478

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 -2.97 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 0.87990.95370.84031.11890.84830.90811.1170.92371.01870.933
GMI 0.81990.93771.05110.91221.11051.02870.99410.99960.99830.9391
AQI 0.87170.81030.92981.01331.13391.00871.05041.06170.96560.9443
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 0.94181.1411.05370.96231.03651.02280.98940.94590.97621.0256
TATA -0.0335-0.0345-0.0613-0.0342-0.0613-0.0564-0.0375-0.0442-0.042-0.0426
M-score -2.84-2.88-2.73-2.80-2.54-2.70-2.53-2.74-2.52-2.76

CSX Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.90861.05311.09411.15531.11831.14230.9890.88610.88840.8096
GMI 0.99951.01871.02511.01390.99760.96320.94060.93680.94030.9505
AQI 1.06171.05811.03311.03080.96560.92260.9170.92130.94430.8938
SGI 0.99430.97770.99631.02661.06761.151.1781.15731.10830.9981
DEPI 0.9890.98761.01481.05511.09881.16651.0570.98690.95880.8778
SGAI 1.01651.02811.01341.00671.02321.03391.05681.06381.04421.032
LVGI 0.94590.9580.96390.99830.97620.98241.00390.99141.02561.0126
TATA -0.0456-0.0437-0.0412-0.0343-0.04-0.0376-0.041-0.045-0.042-0.0478
M-score -2.74-2.61-2.55-2.45-2.50-2.42-2.59-2.73-2.76-2.97
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