KMX has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
CarMax Inc has a M-score of -1.72 signals that the company is a manipulator.
During the past 13 years, the highest Beneish M-Score of CarMax Inc was 3.15. The lowest was -3.48. And the median was -2.35.
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 CarMax 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 * 1.1411||+||0.528 * 1.029||+||0.404 * 1.0363||+||0.892 * 1.1151||+||0.115 * 1.0297|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9759||+||4.679 * 0.1062||-||0.327 * 1.033|
|This Year (Aug14) TTM:||Last Year (Aug13) TTM:|
|Accounts Receivable was $109 Mil.|
Revenue was 3599.194 + 3750.196 + 3076.283 + 2941.407 = $13,367 Mil.
Gross Profit was 463.339 + 501.731 + 384.141 + 381.721 = $1,731 Mil.
Total Current Assets was $2,516 Mil.
Total Assets was $12,400 Mil.
Property, Plant and Equipment(Net PPE) was $1,754 Mil.
Depreciation, Depletion and Amortization(DDA) was $109 Mil.
Selling, General & Admin. Expense(SGA) was $1,193 Mil.
Total Current Liabilities was $907 Mil.
Long-Term Debt was $7,959 Mil.
Net Income was 154.518 + 169.653 + 99.209 + 106.452 = $530 Mil.
Non Operating Income was -0.283 + 0.277 + -0.254 + -0.411 = $-1 Mil.
Cash Flow from Operations was -227.539 + -209.08 + -120.023 + -229.531 = $-786 Mil.
|Accounts Receivable was $86 Mil.
Revenue was 3245.552 + 3311.057 + 2827.948 + 2602.446 = $11,987 Mil.
Gross Profit was 434.743 + 448.096 + 369.235 + 345.219 = $1,597 Mil.
Total Current Assets was $2,481 Mil.
Total Assets was $10,934 Mil.
Property, Plant and Equipment(Net PPE) was $1,535 Mil.
Depreciation, Depletion and Amortization(DDA) was $98 Mil.
Selling, General & Admin. Expense(SGA) was $1,096 Mil.
Total Current Liabilities was $730 Mil.
Long-Term Debt was $6,838 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(108.859 / 13367.08)||/||(85.549 / 11987.003)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(501.731 / 11987.003)||/||(463.339 / 13367.08)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (2516.442 + 1753.992) / 12399.913)||/||(1 - (2481.41 + 1535.431) / 10933.774)|
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.
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))|
|=||(98.001 / (98.001 + 1535.431))||/||(108.517 / (108.517 + 1753.992))|
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)|
|=||(1192.904 / 13367.08)||/||(1096.152 / 11987.003)|
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)|
|=||((7958.973 + 906.927) / 12399.913)||/||((6837.82 + 729.919) / 10933.774)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(529.832 - -0.671||-||-786.173)||/||12399.913|
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.
CarMax Inc has a M-score of -1.72 signals that the company is likely to be a manipulator.
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
CarMax Inc Annual Data
CarMax Inc Quarterly Data