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Hasbro Inc (NAS:HAS)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

HAS' s 10-Year Beneish M-Score Range
Min: -3.36   Max: -1.7
Current: -2.45

-3.36
-1.7

During the past 13 years, the highest Beneish M-Score of Hasbro Inc was -1.70. The lowest was -3.36. 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 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 * 1.0365+0.528 * 0.9801+0.404 * 0.9446+0.892 * 1.0432+0.115 * 0.7861
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9588+4.679 * 0.0021-0.327 * 1.0044
=-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 $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.
Net Income was 180.457 + 33.475 + 32.087 + 129.815 = $376 Mil.
Non Operating Income was -17.795 + 3.59 + 3.649 + -3.845 = $-14 Mil.
Cash Flow from Operations was -82.444 + -132.771 + 242.041 + 353.815 = $381 Mil.
Accounts Receivable was $1,215 Mil.
Revenue was 1370.348 + 766.342 + 663.694 + 1283.529 = $4,084 Mil.
Gross Profit was 657.819 + 415.543 + 346.73 + 677.57 = $2,098 Mil.
Total Current Assets was $2,597 Mil.
Total Assets was $4,590 Mil.
Property, Plant and Equipment(Net PPE) was $231 Mil.
Depreciation, Depletion and Amortization(DDA) was $128 Mil.
Selling, General & Admin. Expense(SGA) was $1,299 Mil.
Total Current Liabilities was $1,649 Mil.
Long-Term Debt was $960 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)
=(1314.022 / 4260.387) / (1215.289 / 4083.913)
=0.30842785 / 0.29757955
=1.0365

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)
=(438.393 / 4083.913) / (772.781 / 4260.387)
=0.51364023 / 0.52407117
=0.9801

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 - (2646.189 + 228.019) / 4508.802) / (1 - (2597.285 + 231.199) / 4590.145)
=0.36253399 / 0.38379202
=0.9446

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
=4260.387 / 4083.913
=1.0432

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))
=(127.635 / (127.635 + 231.199)) / (188.421 / (188.421 + 228.019))
=0.35569372 / 0.45245654
=0.7861

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)
=(1298.907 / 4260.387) / (1298.618 / 4083.913)
=0.30488005 / 0.31798376
=0.9588

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 + 1014.028) / 4508.802) / ((959.895 + 1648.879) / 4590.145)
=0.57086627 / 0.56834239
=1.0044

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
=(375.834 - -14.401 - 380.641) / 4508.802
=0.0021

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 -2.45 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.

Hasbro Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.99740.87781.04160.96660.89161.67870.94061.00511.04341.0636
GMI 1.01240.99830.99510.99511.01740.9851.15261.0360.95191.0198
AQI 0.8830.97530.97620.92791.09391.0670.95641.00330.91341.0437
SGI 0.9551.03011.02071.21771.04791.01150.98381.07080.95410.9983
DEPI 1.08920.7911.17170.98311.03340.9761.16970.90851.0740.9101
SGAI 0.81530.96021.03930.92951.00390.95251.01280.96041.07651.0018
LVGI 0.87620.95131.06181.0910.96541.04921.03441.09710.96060.9685
TATA -0.0498-0.0207-0.018-0.0669-0.08290.02810.00820.0036-0.0428-0.0228
M-score -2.71-2.67-2.53-2.68-2.86-1.71-2.44-2.41-2.73-2.50

Hasbro Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.77870.97141.04341.15851.00911.02921.06361.08641.12531.0365
GMI 1.05231.04020.9890.98450.95550.9751.01981.01161.0210.9801
AQI 0.97570.89410.91340.91450.91931.06011.04371.05441.08860.9446
SGI 0.99830.97640.95410.96280.97440.98770.99830.99861.02521.0432
DEPI 0.92840.90621.0741.05991.06031.26840.91010.8970.87340.7861
SGAI 0.91570.92281.00940.99671.07111.07871.00180.9890.97390.9588
LVGI 1.04150.98830.96060.96390.96871.00060.96850.96881.02211.0044
TATA -0.0244-0.0403-0.0428-0.0484-0.0698-0.0297-0.0228-0.00380.02640.0021
M-score -2.79-2.73-2.70-2.62-2.87-2.57-2.50-2.39-2.19-2.45
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