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Hasbro Inc (NAS:HAS)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

HAS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33   Max: -1.6
Current: -2.59

-3.33
-1.6

During the past 13 years, the highest Beneish M-Score of Hasbro Inc was -1.60. The lowest was -3.33. And the median was -2.67.


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 * 0.9138+0.528 * 1.0064+0.404 * 0.9231+0.892 * 1.0857+0.115 * 1.0717
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9935+4.679 * -0.0231-0.327 * 0.9483
=-2.59

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $704 Mil.
Revenue was 878.945 + 831.18 + 1465.354 + 1470.997 = $4,646 Mil.
Gross Profit was 487.861 + 470.971 + 761.467 + 777.898 = $2,498 Mil.
Total Current Assets was $2,523 Mil.
Total Assets was $4,344 Mil.
Property, Plant and Equipment(Net PPE) was $243 Mil.
Depreciation, Depletion and Amortization(DDA) was $153 Mil.
Selling, General & Admin. Expense(SGA) was $1,441 Mil.
Total Current Liabilities was $745 Mil.
Long-Term Debt was $1,548 Mil.
Net Income was 52.106 + 48.751 + 175.763 + 207.599 = $484 Mil.
Non Operating Income was 3.748 + -4.872 + -3.911 + 4.463 = $-1 Mil.
Cash Flow from Operations was -24.782 + 293.623 + 482.887 + -166.546 = $585 Mil.
Accounts Receivable was $709 Mil.
Revenue was 797.658 + 713.5 + 1298.593 + 1469.899 = $4,280 Mil.
Gross Profit was 445.19 + 406.676 + 691.017 + 772.781 = $2,316 Mil.
Total Current Assets was $2,332 Mil.
Total Assets was $4,218 Mil.
Property, Plant and Equipment(Net PPE) was $226 Mil.
Depreciation, Depletion and Amortization(DDA) was $160 Mil.
Selling, General & Admin. Expense(SGA) was $1,336 Mil.
Total Current Liabilities was $801 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)
=(703.821 / 4646.476) / (709.437 / 4279.65)
=0.15147415 / 0.16576986
=0.9138

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)
=(2315.664 / 4279.65) / (2498.197 / 4646.476)
=0.54108724 / 0.53765413
=1.0064

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 - (2523.356 + 242.607) / 4344.385) / (1 - (2331.785 + 225.911) / 4217.689)
=0.36332461 / 0.39357881
=0.9231

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
=4646.476 / 4279.65
=1.0857

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))
=(159.642 / (159.642 + 225.911)) / (152.752 / (152.752 + 242.607))
=0.41405981 / 0.38636277
=1.0717

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)
=(1440.749 / 4646.476) / (1335.751 / 4279.65)
=0.31007348 / 0.31211688
=0.9935

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)
=((1547.753 + 745.02) / 4344.385) / ((1546.477 + 800.888) / 4217.689)
=0.52775548 / 0.55655242
=0.9483

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
=(484.219 - -0.572 - 585.182) / 4344.385
=-0.0231

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 -2.59 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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.08641.12531.03650.95530.96910.93351.0531.06991.12440.9138
GMI 1.04541.0210.98010.95410.95460.94070.96670.98860.99571.0064
AQI 1.05441.08860.94460.94640.96080.95960.9530.94570.93110.9231
SGI 0.99861.02521.04321.04781.05211.02861.00481.03981.05891.0857
DEPI 0.8970.87340.88221.08591.11751.07411.07731.01031.00441.0717
SGAI 0.9370.97390.95880.9891.00271.01871.02151.00150.9990.9935
LVGI 0.96881.02211.00441.09781.09181.00820.99830.9550.95350.9483
TATA -0.00380.02640.0021-0.0072-0.0262-0.0366-0.0143-0.0226-0.0124-0.0231
M-score -2.36-2.19-2.44-2.58-2.64-2.73-2.52-2.50-2.39-2.59
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