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CSX Corp (FRA:CXR)
Beneish M-Score
-2.50 (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 -2.45 suggests that the company is not a manipulator.

FRA:CXR' s 10-Year Beneish M-Score Range
Min: -12.93   Max: 17.29
Current: -2.5

-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 * 1.1553+0.528 * 1.0139+0.404 * 1.0308+0.892 * 1.0262+0.115 * 1.0551
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0098+4.679 * -0.0343-0.327 * 0.9983
=-2.45

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was €871 Mil.
Revenue was 2498.83630721 + 2387.04930096 + 2177.87418655 + 2209.91253644 = €9,274 Mil.
Gross Profit was 1638.47944143 + 1540.10301692 + 1327.54880694 + 1382.65306122 = €5,889 Mil.
Total Current Assets was €2,076 Mil.
Total Assets was €25,309 Mil.
Property, Plant and Equipment(Net PPE) was €21,718 Mil.
Depreciation, Depletion and Amortization(DDA) was €846 Mil.
Selling, General & Admin. Expense(SGA) was €2,733 Mil.
Total Current Liabilities was €1,731 Mil.
Long-Term Debt was €7,282 Mil.
Net Income was 394.879751746 + 389.256806475 + 287.780187997 + 310.495626822 = €1,382 Mil.
Non Operating Income was -20.1706749418 + -8.83002207506 + 5.06146059291 + -5.83090379009 = €-30 Mil.
Cash Flow from Operations was 664.85647789 + 622.516556291 + 433.116413594 + 559.766763848 = €2,280 Mil.
Accounts Receivable was €735 Mil.
Revenue was 2235.95505618 + 2309.3252464 + 2288.03088803 + 2203.50609756 = €9,037 Mil.
Gross Profit was 1429.21348315 + 1510.99317665 + 1480.30888031 + 1397.86585366 = €5,818 Mil.
Total Current Assets was €1,648 Mil.
Total Assets was €23,178 Mil.
Property, Plant and Equipment(Net PPE) was €20,184 Mil.
Depreciation, Depletion and Amortization(DDA) was €832 Mil.
Selling, General & Admin. Expense(SGA) was €2,638 Mil.
Total Current Liabilities was €1,686 Mil.
Long-Term Debt was €6,582 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)
=(871.217998448 / 9273.67233117) / (734.831460674 / 9036.81728817)
=0.09394531 / 0.08131529
=1.1553

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)
=(1540.10301692 / 9036.81728817) / (1638.47944143 / 9273.67233117)
=0.64385294 / 0.63500026
=1.0139

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 - (2076.02792863 + 21717.6105508) / 25308.7664856) / (1 - (1647.94007491 + 20184.2696629) / 23178.2771536)
=0.05986574 / 0.05807452
=1.0308

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
=9273.67233117 / 9036.81728817
=1.0262

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))
=(831.789154635 / (831.789154635 + 20184.2696629)) / (846.379211679 / (846.379211679 + 21717.6105508))
=0.03957874 / 0.03751018
=1.0551

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)
=(2733.08124687 / 9273.67233117) / (2637.52712177 / 9036.81728817)
=0.29471402 / 0.29186461
=1.0098

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)
=((7282.38944919 + 1730.79906905) / 25308.7664856) / ((6582.02247191 + 1686.1423221) / 23178.2771536)
=0.35612911 / 0.35672042
=0.9983

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
=(1382.41237304 - -29.770140214 - 2280.25621162) / 25308.7664856
=-0.0343

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 -2.45 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 0.98610.93260.92180.93771.05110.96981.04451.03130.99160.9996
AQI 0.23921.03990.87170.81030.92981.01331.13391.00871.05041.0617
SGI 0.9471.21110.99660.95131.20930.74431.29651.111.00480.9776
DEPI 1.2670.890.99711.01351.00951.03220.98451.01750.96281.0047
SGAI 2.67840.97370.92170.9720.88191.27230.93760.93860.98671.0085
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 -3.33-2.28-2.81-2.88-2.72-2.80-2.57-2.71-2.53-2.74

CSX Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.07170.99231.04360.81990.79190.82310.90811.05291.09381.1553
GMI 0.99750.96940.99120.98690.98710.9940.99941.01871.02511.0139
AQI 1.00110.99071.05041.04741.08391.0831.06171.05811.03311.0308
SGI 1.09461.08991.07071.04591.00060.98950.99440.97770.99611.0262
DEPI 1.131.0310.90550.9340.91190.95620.98850.98741.01461.0551
SGAI 0.95830.97560.98620.99641.00581.00521.00871.02071.01311.0098
LVGI 1.01420.99220.98940.96310.96440.94670.94590.9580.96390.9983
TATA -0.0429-0.0454-0.0383-0.0467-0.0464-0.0432-0.0456-0.0437-0.0412-0.0343
M-score -2.51-2.63-2.55-2.81-2.86-2.81-2.74-2.61-2.55-2.45
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