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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 -2.60 suggests that the company is not a manipulator.

HAS' s 10-Year Beneish M-Score Range
Min: -3.2   Max: -1.6
Current: -2.59

-3.2
-1.6

During the past 13 years, the highest Beneish M-Score of Hasbro Inc was -1.60. The lowest was -3.20. And the median was -2.60.


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 * 0.9553+0.528 * 0.9541+0.404 * 0.908+0.892 * 1.0478+0.115 * 1.0859
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.989+4.679 * -0.0072-0.327 * 1.1016
=-2.60

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $1,095 Mil.
Revenue was 1298.593 + 1469.899 + 829.262 + 679.453 = $4,277 Mil.
Gross Profit was 691.017 + 772.781 + 438.393 + 371.327 = $2,274 Mil.
Total Current Assets was $2,719 Mil.
Total Assets was $4,532 Mil.
Property, Plant and Equipment(Net PPE) was $237 Mil.
Depreciation, Depletion and Amortization(DDA) was $158 Mil.
Selling, General & Admin. Expense(SGA) was $1,316 Mil.
Total Current Liabilities was $1,075 Mil.
Long-Term Debt was $1,560 Mil.
Net Income was 169.911 + 180.457 + 33.475 + 32.087 = $416 Mil.
Non Operating Income was 4.508 + -17.795 + 3.59 + 3.649 = $-6 Mil.
Cash Flow from Operations was 427.585 + -82.444 + -132.771 + 242.041 = $454 Mil.
Accounts Receivable was $1,094 Mil.
Revenue was 1281.773 + 1370.348 + 766.342 + 663.694 = $4,082 Mil.
Gross Profit was 650.245 + 657.819 + 415.543 + 346.73 = $2,070 Mil.
Total Current Assets was $2,480 Mil.
Total Assets was $4,402 Mil.
Property, Plant and Equipment(Net PPE) was $236 Mil.
Depreciation, Depletion and Amortization(DDA) was $181 Mil.
Selling, General & Admin. Expense(SGA) was $1,270 Mil.
Total Current Liabilities was $1,363 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)
=(1094.673 / 4277.207) / (1093.62 / 4082.157)
=0.25593173 / 0.26790248
=0.9553

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)
=(772.781 / 4082.157) / (691.017 / 4277.207)
=0.50716741 / 0.53154266
=0.9541

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 - (2719.1 + 237.489) / 4532.142) / (1 - (2480.457 + 236.263) / 4402.267)
=0.34763981 / 0.38288159
=0.908

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
=4277.207 / 4082.157
=1.0478

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))
=(180.985 / (180.985 + 236.263)) / (157.966 / (157.966 + 237.489))
=0.43375882 / 0.39945379
=1.0859

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)
=(1315.793 / 4277.207) / (1269.777 / 4082.157)
=0.30762902 / 0.31105541
=0.989

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 + 1074.934) / 4532.142) / ((959.895 + 1363.28) / 4402.267)
=0.58136506 / 0.52772242
=1.1016

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
=(415.93 - -6.048 - 454.411) / 4532.142
=-0.0072

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 -2.60 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.97141.04341.15851.00911.02921.06361.08641.12531.03650.9553
GMI 0.9760.92110.91660.98821.00841.0541.04541.0210.98010.9541
AQI 0.89410.91340.91450.91931.06011.04371.05441.08860.94460.908
SGI 0.97640.95410.96280.97440.98770.99830.99861.02521.04321.0478
DEPI 1.14011.0741.05991.06030.95860.91010.8970.87340.88221.0859
SGAI 1.03971.13661.12131.01251.01940.94880.9370.97390.95880.989
LVGI 0.98830.96060.96390.96871.00060.96850.96881.02211.00441.1016
TATA -0.0403-0.0428-0.0484-0.0698-0.0297-0.0228-0.00380.02640.0021-0.0072
M-score -2.76-2.76-2.67-2.84-2.58-2.47-2.36-2.19-2.44-2.60
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