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CSX Corp (FRA:CXR)
Beneish M-Score
-2.79 (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 -2.59 suggests that the company is not a manipulator.

FRA:CXR' s 10-Year Beneish M-Score Range
Min: -12.93   Max: 17.29
Current: -2.79

-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 * 0.989+0.528 * 0.9406+0.404 * 0.917+0.892 * 1.178+0.115 * 1.057
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.055+4.679 * -0.041-0.327 * 1.0039
=-2.59

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was €911 Mil.
Revenue was 2730.10781431 + 2796.82158366 + 2588.80778589 + 2499.41801816 = €10,615 Mil.
Gross Profit was 1907.68956607 + 1863.62376421 + 1703.16301703 + 1638.86086754 = €7,113 Mil.
Total Current Assets was €2,378 Mil.
Total Assets was €30,096 Mil.
Property, Plant and Equipment(Net PPE) was €26,063 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,000 Mil.
Selling, General & Admin. Expense(SGA) was €3,304 Mil.
Total Current Liabilities was €1,584 Mil.
Long-Term Debt was €9,006 Mil.
Net Income was 492.738127061 + 408.389540793 + 398.215733982 + 394.971676884 = €1,694 Mil.
Non Operating Income was 3.56410941816 + 1.84791647418 + 1.62206001622 + -20.1753705284 = €-13 Mil.
Cash Flow from Operations was 794.796400249 + 637.531183591 + 844.282238443 + 665.011251649 = €2,942 Mil.
Accounts Receivable was €782 Mil.
Revenue was 2387.57635976 + 2177.7167233 + 2210.39585915 + 2235.78758145 = €9,011 Mil.
Gross Profit was 1540.44307058 + 1327.45282337 + 1382.95545673 + 1429.10643397 = €5,680 Mil.
Total Current Assets was €1,746 Mil.
Total Assets was €23,534 Mil.
Property, Plant and Equipment(Net PPE) was €20,376 Mil.
Depreciation, Depletion and Amortization(DDA) was €828 Mil.
Selling, General & Admin. Expense(SGA) was €2,658 Mil.
Total Current Liabilities was €2,059 Mil.
Long-Term Debt was €6,190 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)
=(910.62995634 / 10615.155202) / (781.629498786 / 9011.47652367)
=0.08578584 / 0.08673712
=0.989

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)
=(1863.62376421 / 9011.47652367) / (1907.68956607 / 10615.155202)
=0.63030268 / 0.67011147
=0.9406

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 - (2378.15200927 + 26062.5501203) / 30096.2309543) / (1 - (1745.78641348 + 20376.0947965) / 23533.5246927)
=0.05500785 / 0.05998436
=0.917

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
=10615.155202 / 9011.47652367
=1.178

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))
=(828.174534875 / (828.174534875 + 20376.0947965)) / (999.992516061 / (999.992516061 + 26062.5501203))
=0.03905697 / 0.03695117
=1.057

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)
=(3303.6173656 / 10615.155202) / (2658.41699041 / 9011.47652367)
=0.31121706 / 0.29500349
=1.055

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)
=((9005.61347233 + 1584.24663637) / 30096.2309543) / ((6189.74019283 + 2058.58541253) / 23533.5246927)
=0.35186665 / 0.35049257
=1.0039

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
=(1694.31507872 - -13.1412846199 - 2941.62107393) / 30096.2309543
=-0.041

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 -2.59 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 1.21130.99670.95151.20870.74471.29641.111.00440.97811.172
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 -2.28-2.81-2.88-2.73-2.80-2.57-2.71-2.53-2.74-2.52

CSX Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.81990.79180.82310.90861.05311.09411.15531.11831.14230.989
GMI 0.98690.98710.9940.99951.01871.02511.01390.99760.96320.9406
AQI 1.04741.08391.0831.06171.05811.03311.03080.96560.92260.917
SGI 1.04571.00030.98910.99430.97770.99631.02661.06761.151.178
DEPI 0.93390.91180.95630.9890.98761.01481.05511.09881.16651.057
SGAI 0.99641.00581.00521.00871.02071.01311.00981.02811.03981.055
LVGI 0.96310.96440.94670.94590.9580.96390.99830.97620.98241.0039
TATA -0.0467-0.0464-0.0432-0.0456-0.0437-0.0412-0.0343-0.04-0.0376-0.041
M-score -2.81-2.86-2.81-2.74-2.61-2.55-2.45-2.50-2.42-2.59
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