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Hasbro Inc (NAS:HAS)
Beneish M-Score
-2.54 (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.

Hasbro Inc has a M-score of -2.54 suggests that the company is not a manipulator.

HAS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33   Max: -1.6
Current: -2.54

-3.33
-1.6

During the past 13 years, the highest Beneish M-Score of Hasbro Inc was -1.60. The lowest was -3.33. And the median was -2.67.


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 Hasbro Inc 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 * 0.9214+0.528 * 1.0098+0.404 * 0.9118+0.892 * 1.1342+0.115 * 1.1168
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.986+4.679 * -0.0209-0.327 * 0.9965
=-2.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,453 Mil.
Revenue was 1679.757 + 878.945 + 831.18 + 1465.354 = $4,855 Mil.
Gross Profit was 886.477 + 487.861 + 470.971 + 761.467 = $2,607 Mil.
Total Current Assets was $3,147 Mil.
Total Assets was $4,955 Mil.
Property, Plant and Equipment(Net PPE) was $247 Mil.
Depreciation, Depletion and Amortization(DDA) was $149 Mil.
Selling, General & Admin. Expense(SGA) was $1,491 Mil.
Total Current Liabilities was $1,616 Mil.
Long-Term Debt was $1,198 Mil.
Net Income was 257.798 + 52.106 + 48.751 + 175.763 = $534 Mil.
Non Operating Income was 6.584 + 3.748 + -4.872 + -3.911 = $2 Mil.
Cash Flow from Operations was -115.06 + -24.782 + 293.623 + 482.887 = $637 Mil.
Accounts Receivable was $1,390 Mil.
Revenue was 1470.997 + 797.658 + 713.5 + 1298.593 = $4,281 Mil.
Gross Profit was 777.898 + 445.19 + 406.676 + 691.017 = $2,321 Mil.
Total Current Assets was $2,778 Mil.
Total Assets was $4,580 Mil.
Property, Plant and Equipment(Net PPE) was $220 Mil.
Depreciation, Depletion and Amortization(DDA) was $159 Mil.
Selling, General & Admin. Expense(SGA) was $1,333 Mil.
Total Current Liabilities was $1,050 Mil.
Long-Term Debt was $1,560 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)
=(1452.931 / 4855.236) / (1390.274 / 4280.748)
=0.29925034 / 0.32477361
=0.9214

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)
=(2320.781 / 4280.748) / (2606.776 / 4855.236)
=0.5421438 / 0.53689996
=1.0098

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 - (3146.987 + 247.231) / 4955.147) / (1 - (2778.116 + 219.656) / 4580.246)
=0.31501164 / 0.34549978
=0.9118

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
=4855.236 / 4280.748
=1.1342

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))
=(159.05 / (159.05 + 219.656)) / (149.004 / (149.004 + 247.231))
=0.41998278 / 0.37604957
=1.1168

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)
=(1491.018 / 4855.236) / (1333.238 / 4280.748)
=0.30709486 / 0.31144977
=0.986

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)
=((1198.461 + 1615.719) / 4955.147) / ((1559.895 + 1050.496) / 4580.246)
=0.56793068 / 0.56992376
=0.9965

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
=(534.418 - 1.549 - 636.668) / 4955.147
=-0.0209

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.

Hasbro Inc has a M-score of -2.54 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 local exchange's currency.

Hasbro Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04160.96660.89161.67870.94061.00511.04341.06360.95531.0699
GMI 0.99510.99511.01741.1430.98261.04720.95191.01980.95410.9886
AQI 0.97620.92791.09391.0670.95641.00330.91341.04370.94640.9457
SGI 1.02071.21771.04791.01150.98381.07080.95410.99831.04781.0398
DEPI 1.17170.98311.03340.9761.16970.90851.0740.91011.08591.0103
SGAI 1.03930.92951.25490.7621.01280.96041.07651.00180.9891.0015
LVGI 1.06181.0910.96541.04921.03441.09710.96060.96851.09780.955
TATA -0.018-0.0669-0.08290.02810.00820.0036-0.0428-0.0228-0.0072-0.0226
M-score -2.53-2.68-2.91-1.59-2.53-2.40-2.73-2.50-2.58-2.50

Hasbro Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.12531.03650.95530.96910.93351.0531.06991.12440.91380.9214
GMI 1.0210.98010.95410.95460.94070.96670.98860.99571.00641.0098
AQI 1.08860.94460.94640.96080.95960.9530.94570.93110.92310.9118
SGI 1.02521.04321.04781.05211.02861.00481.03981.05891.08571.1342
DEPI 0.87340.88221.08591.11751.07411.07731.01031.00441.07171.1168
SGAI 0.97390.95880.9891.00271.01871.02151.00150.9990.99350.986
LVGI 1.02211.00441.09781.09181.00820.99830.9550.95350.94830.9965
TATA 0.02640.0021-0.0072-0.0262-0.0366-0.0143-0.0226-0.0124-0.0231-0.0209
M-score -2.19-2.44-2.58-2.64-2.73-2.52-2.50-2.39-2.59-2.54
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