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Hasbro Inc (NAS:HAS)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

HAS' s 10-Year Beneish M-Score Range
Min: -3.36   Max: -1.6
Current: -2.75

-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 * 0.9335+0.528 * 0.9407+0.404 * 0.9216+0.892 * 1.0286+0.115 * 1.0741
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0187+4.679 * -0.0365-0.327 * 1.0129
=-2.75

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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 $2,406 Mil.
Total Assets was $4,231 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 $806 Mil.
Long-Term Debt was $1,560 Mil.
Net Income was 41.809 + 26.667 + 169.911 + 180.457 = $419 Mil.
Non Operating Income was 1.642 + 3.765 + 4.508 + -17.795 = $-8 Mil.
Cash Flow from Operations was -79.177 + 315.281 + 427.585 + -82.444 = $581 Mil.
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.



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)
=(709.437 / 4279.65) / (738.899 / 4160.836)
=0.16576986 / 0.17758426
=0.9335

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)
=(406.676 / 4160.836) / (445.19 / 4279.65)
=0.50898041 / 0.54108724
=0.9407

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 - (2405.829 + 225.911) / 4231.107) / (1 - (2204.205 + 236.881) / 4138.595)
=0.37800202 / 0.41016553
=0.9216

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
=4279.65 / 4160.836
=1.0286

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))
=(189.723 / (189.723 + 236.881)) / (159.642 / (159.642 + 225.911))
=0.4447286 / 0.41405981
=1.0741

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)
=(1335.751 / 4279.65) / (1274.875 / 4160.836)
=0.31211688 / 0.30639876
=1.0187

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 + 805.903) / 4231.107) / ((1559.895 + 724.692) / 4138.595)
=0.55914398 / 0.55201995
=1.0129

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
=(418.844 - -7.88 - 581.245) / 4231.107
=-0.0365

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 -2.75 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 0.99830.99510.99511.01740.9851.15261.0360.95191.01980.9541
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 -2.67-2.53-2.68-2.91-1.67-2.44-2.41-2.73-2.50-2.60

Hasbro Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.15851.00911.02921.06361.08641.12531.03650.95530.96910.9335
GMI 0.91660.98821.00841.0541.04541.0210.98010.95410.95460.9407
AQI 0.91450.91931.06011.04371.05441.08860.94460.9080.92360.9216
SGI 0.96280.97440.98770.99830.99861.02521.04321.04781.05211.0286
DEPI 1.05991.06030.95860.91010.8970.87340.88221.08591.11751.0741
SGAI 1.12131.01251.01940.94880.9370.97390.95880.9891.00271.0187
LVGI 0.96390.96871.00060.96850.96881.02211.00441.10161.09631.0129
TATA -0.0484-0.0698-0.0297-0.0228-0.00380.02640.0021-0.0072-0.0261-0.0365
M-score -2.67-2.84-2.58-2.47-2.36-2.19-2.44-2.60-2.66-2.75
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