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Hasbro Inc (NAS:HAS)
Beneish M-Score
-2.19 (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 -2.19 signals that the company is a manipulator.

HAS' s 10-Year Beneish M-Score Range
Min: -3.36   Max: -1.6
Current: -2.19

-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 * 1.1253+0.528 * 1.021+0.404 * 1.0886+0.892 * 1.0252+0.115 * 0.8734
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9739+4.679 * 0.0258-0.327 * 1.0221
=-2.19

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $739 Mil.
Revenue was 829.262 + 679.453 + 1281.773 + 1370.348 = $4,161 Mil.
Gross Profit was 438.393 + 371.327 + 650.245 + 657.819 = $2,118 Mil.
Total Current Assets was $2,204 Mil.
Total Assets was $4,139 Mil.
Property, Plant and Equipment(Net PPE) was $237 Mil.
Depreciation, Depletion and Amortization(DDA) was $190 Mil.
Selling, General & Admin. Expense(SGA) was $1,275 Mil.
Total Current Liabilities was $725 Mil.
Long-Term Debt was $1,560 Mil.
Net Income was 33.475 + 32.087 + 129.815 + 126.574 = $322 Mil.
Non Operating Income was 4.755 + 4.975 + -3.845 + -2.925 = $3 Mil.
Cash Flow from Operations was -132.771 + 242.041 + 353.815 + -250.819 = $212 Mil.
Accounts Receivable was $641 Mil.
Revenue was 766.342 + 663.694 + 1283.529 + 1345.137 = $4,059 Mil.
Gross Profit was 415.543 + 346.73 + 677.57 + 669.397 = $2,109 Mil.
Total Current Assets was $2,366 Mil.
Total Assets was $4,178 Mil.
Property, Plant and Equipment(Net PPE) was $238 Mil.
Depreciation, Depletion and Amortization(DDA) was $151 Mil.
Selling, General & Admin. Expense(SGA) was $1,277 Mil.
Total Current Liabilities was $1,297 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)
=(738.899 / 4160.836) / (640.503 / 4058.702)
=0.17758426 / 0.15780981
=1.1253

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)
=(371.327 / 4058.702) / (438.393 / 4160.836)
=0.51968339 / 0.50898041
=1.021

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 - (2204.205 + 236.881) / 4138.595) / (1 - (2366.202 + 237.774) / 4178.299)
=0.41016553 / 0.37678562
=1.0886

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
=4160.836 / 4058.702
=1.0252

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))
=(151.026 / (151.026 + 237.774)) / (189.723 / (189.723 + 236.881))
=0.38844136 / 0.4447286
=0.8734

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)
=(1274.875 / 4160.836) / (1276.959 / 4058.702)
=0.30639876 / 0.31462251
=0.9739

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 + 724.692) / 4138.595) / ((959.895 + 1296.722) / 4178.299)
=0.55201995 / 0.54008031
=1.0221

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
=(321.951 - 2.96 - 212.266) / 4138.595
=0.0258

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 -2.19 signals that the company is likely to 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 1.01240.99830.99510.99511.01741.1430.98261.04720.95191.0198
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 0.81530.96021.03930.92951.25490.7621.01280.96041.07651.0018
LVGI 0.87620.95131.06181.0910.96541.04921.03441.09710.96060.9685
TATA 0.0191-0.0207-0.018-0.0669-0.08290.02810.00820.0036-0.0428-0.0228
M-score -2.39-2.67-2.53-2.68-2.91-1.59-2.53-2.40-2.73-2.50

Hasbro Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.77870.97141.04341.15851.00911.02921.06361.08641.12531.0365
GMI 0.98930.9760.92110.91660.98821.00841.0541.04541.0210.9801
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 0.92841.14011.0741.05991.06030.95860.91010.8970.87341.0349
SGAI 1.03221.03971.13661.12131.01251.01940.94880.9370.97390.9588
LVGI 1.04150.98830.96060.96390.96871.00060.96850.96881.02211.0044
TATA -0.0244-0.0403-0.0428-0.0484-0.0698-0.0297-0.0228-0.00420.02580.0014
M-score -2.84-2.76-2.76-2.67-2.84-2.58-2.47-2.37-2.19-2.42
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