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GuruFocus has detected 5 Warning Signs with Hasbro Inc $HAS.
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Hasbro Inc (NAS:HAS)
Beneish M-Score
-2.64 (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 -2.64 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: -2.64

-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 -2.66.


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 * 0.9603+0.528 * 0.9978+0.404 * 0.915+0.892 * 1.1287+0.115 * 0.9598
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0215+4.679 * -0.0424-0.327 * 0.9999
=-2.64

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $1,320 Mil.
Revenue was 1629.94 + 1679.757 + 878.945 + 831.18 = $5,020 Mil.
Gross Profit was 859.517 + 886.477 + 487.861 + 470.971 = $2,705 Mil.
Total Current Assets was $3,228 Mil.
Total Assets was $5,091 Mil.
Property, Plant and Equipment(Net PPE) was $267 Mil.
Depreciation, Depletion and Amortization(DDA) was $187 Mil.
Selling, General & Admin. Expense(SGA) was $1,580 Mil.
Total Current Liabilities was $1,618 Mil.
Long-Term Debt was $1,199 Mil.
Net Income was 192.725 + 257.798 + 52.106 + 48.751 = $551 Mil.
Non Operating Income was -12.981 + 6.584 + 3.748 + -4.872 = $-8 Mil.
Cash Flow from Operations was 621.092 + -115.06 + -24.782 + 293.623 = $775 Mil.
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.



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)
=(1319.963 / 5019.822) / (1217.85 / 4447.509)
=0.26295016 / 0.27382744
=0.9603

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)
=(2391.231 / 4447.509) / (2704.826 / 5019.822)
=0.53765625 / 0.53882907
=0.9978

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 - (3227.607 + 267.398) / 5091.366) / (1 - (2865.598 + 237.527) / 4720.717)
=0.31354277 / 0.34265812
=0.915

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
=5019.822 / 4447.509
=1.1287

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))
=(155.327 / (155.327 + 237.527)) / (187.328 / (187.328 + 267.398))
=0.39538098 / 0.41195797
=0.9598

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)
=(1579.709 / 5019.822) / (1370.183 / 4447.509)
=0.31469423 / 0.30807875
=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)
=((1198.679 + 1617.859) / 5091.366) / ((1547.115 + 1064.647) / 4720.717)
=0.55319889 / 0.55325536
=0.9999

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
=(551.38 - -7.521 - 774.873) / 5091.366
=-0.0424

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 -2.64 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.96660.89161.67870.94061.00511.04341.06360.95531.06990.9603
GMI 0.99511.01741.1430.98261.04720.95191.01980.95410.98860.9978
AQI 0.92791.09391.0670.95641.00330.91341.04370.94640.94570.915
SGI 1.21771.04791.01150.98381.07080.95410.99831.04781.03981.1287
DEPI 0.98311.03340.9761.16970.90851.0740.91011.08591.01030.9598
SGAI 0.92951.25490.7621.01280.96041.07651.00180.9891.00151.0215
LVGI 1.0910.96541.04921.03441.09710.96060.96851.09780.9550.9999
TATA -0.0669-0.08290.02810.00820.0036-0.0428-0.0228-0.0072-0.0226-0.0424
M-score -2.68-2.91-1.59-2.53-2.40-2.73-2.50-2.58-2.50-2.64

Hasbro Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.03650.95530.96910.93351.0531.06991.12440.91380.92140.9603
GMI 0.98010.95410.95460.94070.96670.98860.99571.00641.00980.9978
AQI 0.94460.94640.96080.95960.9530.94570.93110.92310.91180.915
SGI 1.04321.04781.05211.02861.00481.03981.05891.08571.13421.1287
DEPI 0.88221.08591.11751.07411.07731.01031.00441.07171.11680.9598
SGAI 0.95880.9891.00271.01871.02151.00150.9990.99350.9861.0215
LVGI 1.00441.09781.09181.00820.99830.9550.95350.94830.99650.9999
TATA 0.0021-0.0072-0.0262-0.0366-0.0143-0.0226-0.0124-0.0231-0.0209-0.0424
M-score -2.44-2.58-2.64-2.73-2.52-2.50-2.39-2.59-2.54-2.64
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