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Hasbro Inc (NAS:HAS)
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.

Hasbro Inc has a M-score of -2.50 suggests that the company is not a manipulator.

HAS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Max: -1.6
Current: -2.5

-3.23
-1.6

During the past 13 years, the highest Beneish M-Score of Hasbro Inc was -1.60. The lowest was -3.23. And the median was -2.64.


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 * 1.0699+0.528 * 0.9886+0.404 * 0.9457+0.892 * 1.0398+0.115 * 1.0103
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0015+4.679 * -0.0226-0.327 * 0.955
=-2.50

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $1,218 Mil.
Revenue was 1465.354 + 1470.997 + 797.658 + 713.5 = $4,448 Mil.
Gross Profit was 761.467 + 777.898 + 445.19 + 406.676 = $2,391 Mil.
Total Current Assets was $2,866 Mil.
Total Assets was $4,721 Mil.
Property, Plant and Equipment(Net PPE) was $238 Mil.
Depreciation, Depletion and Amortization(DDA) was $155 Mil.
Selling, General & Admin. Expense(SGA) was $1,370 Mil.
Total Current Liabilities was $1,065 Mil.
Long-Term Debt was $1,547 Mil.
Net Income was 175.763 + 207.599 + 41.809 + 26.667 = $452 Mil.
Non Operating Income was -3.911 + 4.463 + 1.642 + 3.765 = $6 Mil.
Cash Flow from Operations was 482.887 + -166.546 + -79.177 + 315.281 = $552 Mil.
Accounts Receivable was $1,095 Mil.
Revenue was 1298.593 + 1469.899 + 829.262 + 679.453 = $4,277 Mil.
Gross Profit was 691.017 + 772.781 + 438.393 + 371.327 = $2,274 Mil.
Total Current Assets was $2,644 Mil.
Total Assets was $4,518 Mil.
Property, Plant and Equipment(Net PPE) was $237 Mil.
Depreciation, Depletion and Amortization(DDA) was $158 Mil.
Selling, General & Admin. Expense(SGA) was $1,316 Mil.
Total Current Liabilities was $1,072 Mil.
Long-Term Debt was $1,546 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)
=(1217.85 / 4447.509) / (1094.673 / 4277.207)
=0.27382744 / 0.25593173
=1.0699

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)
=(777.898 / 4277.207) / (761.467 / 4447.509)
=0.53154266 / 0.53765625
=0.9886

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 - (2865.598 + 237.527) / 4720.717) / (1 - (2643.505 + 237.489) / 4518.1)
=0.34265812 / 0.36234391
=0.9457

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
=4447.509 / 4277.207
=1.0398

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))
=(157.966 / (157.966 + 237.489)) / (155.327 / (155.327 + 237.527))
=0.39945379 / 0.39538098
=1.0103

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)
=(1370.183 / 4447.509) / (1315.793 / 4277.207)
=0.30807875 / 0.30762902
=1.0015

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)
=((1547.115 + 1064.647) / 4720.717) / ((1545.853 + 1071.684) / 4518.1)
=0.55325536 / 0.57934464
=0.955

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
=(451.838 - 5.959 - 552.445) / 4720.717
=-0.0226

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 -2.50 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.

Hasbro Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04160.96660.89161.67870.94061.00511.04341.06360.95531.0699
GMI 0.99510.99511.01740.9851.15261.0360.95191.01980.95410.9886
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 1.03930.92951.00390.95251.01280.96041.07651.00180.9891.0015
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 -2.53-2.68-2.86-1.71-2.44-2.41-2.73-2.50-2.58-2.50

Hasbro Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.06361.08641.12531.03650.95530.96910.93351.0531.06991.1244
GMI 1.0541.04541.0210.98010.95410.95460.94070.96670.98860.9957
AQI 1.04371.05441.08860.94460.94640.92360.92160.9530.94570.9686
SGI 0.99830.99861.02521.04321.04781.05211.02861.00481.03981.0589
DEPI 0.91010.8970.87340.88221.08591.11751.07411.07731.01031.1229
SGAI 0.94880.9370.97390.95880.9891.00271.01871.02151.00150.999
LVGI 0.96850.96881.02211.00441.09781.09631.01290.99830.9550.9496
TATA -0.0228-0.00380.02640.0021-0.0072-0.0261-0.0365-0.0143-0.0226-0.0129
M-score -2.47-2.36-2.19-2.44-2.58-2.66-2.75-2.52-2.50-2.36
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