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Hasbro Inc (NAS:HAS)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

HAS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.36   Max: -1.6
Current: -2.52

-3.36
-1.6

During the past 13 years, the highest Beneish M-Score of Hasbro Inc was -1.60. The lowest was -3.36. And the median was -2.61.


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 * 1.053+0.528 * 0.9667+0.404 * 0.953+0.892 * 1.0048+0.115 * 1.0773
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0215+4.679 * -0.0143-0.327 * 0.9983
=-2.52

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 207.599 + 41.809 + 26.667 + 169.911 = $446 Mil.
Non Operating Income was 4.463 + 1.642 + 3.765 + 4.508 = $14 Mil.
Cash Flow from Operations was -166.546 + -79.177 + 315.281 + 427.585 = $497 Mil.
Accounts Receivable was $1,314 Mil.
Revenue was 1469.899 + 829.262 + 679.453 + 1281.773 = $4,260 Mil.
Gross Profit was 772.781 + 438.393 + 371.327 + 650.245 = $2,233 Mil.
Total Current Assets was $2,646 Mil.
Total Assets was $4,509 Mil.
Property, Plant and Equipment(Net PPE) was $228 Mil.
Depreciation, Depletion and Amortization(DDA) was $188 Mil.
Selling, General & Admin. Expense(SGA) was $1,299 Mil.
Total Current Liabilities was $1,014 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)
=(1390.274 / 4280.748) / (1314.022 / 4260.387)
=0.32477361 / 0.30842785
=1.053

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)
=(445.19 / 4260.387) / (777.898 / 4280.748)
=0.52407117 / 0.5421438
=0.9667

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 - (2778.116 + 219.656) / 4580.246) / (1 - (2646.189 + 228.019) / 4508.802)
=0.34549978 / 0.36253399
=0.953

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
=4280.748 / 4260.387
=1.0048

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))
=(188.421 / (188.421 + 228.019)) / (159.05 / (159.05 + 219.656))
=0.45245654 / 0.41998278
=1.0773

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)
=(1333.238 / 4280.748) / (1298.907 / 4260.387)
=0.31144977 / 0.30488005
=1.0215

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)
=((1559.895 + 1050.496) / 4580.246) / ((1559.895 + 1014.028) / 4508.802)
=0.56992376 / 0.57086627
=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
=(445.986 - 14.378 - 497.143) / 4580.246
=-0.0143

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 -2.52 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.87781.04160.96660.89161.67870.94061.00511.04341.06360.9553
GMI 0.99830.99510.99511.01741.1430.98261.04720.95191.01980.9541
AQI 0.97530.97620.92791.09391.0670.95641.00330.91341.04370.908
SGI 1.03011.02071.21771.04791.01150.98381.07080.95410.99831.0478
DEPI 0.7911.17170.98311.03340.9761.16970.90851.0740.91011.0859
SGAI 0.96021.03930.92951.25490.7621.01280.96041.07651.00180.989
LVGI 0.95131.06181.0910.96541.04921.03441.09710.96060.96851.1016
TATA -0.0207-0.018-0.0669-0.08290.02810.00820.0036-0.0428-0.0228-0.0072
M-score -2.67-2.53-2.68-2.91-1.59-2.53-2.40-2.73-2.50-2.60

Hasbro Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.00911.02921.06361.08641.12531.03650.95530.96910.93351.053
GMI 0.98821.00841.0541.04541.0210.98010.95410.95460.94070.9667
AQI 0.91931.06011.04371.05441.08860.94460.9080.92360.92160.953
SGI 0.97440.98770.99830.99861.02521.04321.04781.05211.02861.0048
DEPI 1.06030.95860.91010.8970.87340.88221.08591.11751.07411.0773
SGAI 1.01251.01940.94880.9370.97390.95880.9891.00271.01871.0215
LVGI 0.96871.00060.96850.96881.02211.00441.10161.09631.01290.9983
TATA -0.0698-0.0297-0.0228-0.00380.02640.0021-0.0072-0.0261-0.0365-0.0143
M-score -2.84-2.58-2.47-2.36-2.19-2.44-2.60-2.66-2.75-2.52
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