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Prestige Brands Holdings Inc (NYSE:PBH)
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.

Prestige Brands Holdings Inc has a M-score of -2.59 suggests that the company is not a manipulator.

PBH' s Beneish M-Score Range Over the Past 10 Years
Min: -4.19   Max: -2.16
Current: -2.59

-4.19
-2.16

During the past 13 years, the highest Beneish M-Score of Prestige Brands Holdings Inc was -2.16. The lowest was -4.19. And the median was -2.47.


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 Prestige Brands Holdings 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 * 0.8507+0.528 * 0.9647+0.404 * 0.9878+0.892 * 1.181+0.115 * 0.8227
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9021+4.679 * -0.0297-0.327 * 0.9004
=-2.59

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $85.1 Mil.
Revenue was 200.195 + 206.065 + 192.132 + 190.046 = $788.4 Mil.
Gross Profit was 116.784 + 119.94 + 112.236 + 110.07 = $459.0 Mil.
Total Current Assets was $228.2 Mil.
Total Assets was $2,641.0 Mil.
Property, Plant and Equipment(Net PPE) was $12.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.3 Mil.
Selling, General & Admin. Expense(SGA) was $179.5 Mil.
Total Current Liabilities was $86.7 Mil.
Long-Term Debt was $1,447.0 Mil.
Net Income was 27.995 + 31.803 + 26.173 + 23.772 = $109.7 Mil.
Non Operating Income was 0 + 0 + -0.451 + 0 = $-0.5 Mil.
Cash Flow from Operations was 45.861 + 47.069 + 43.521 + 52.113 = $188.6 Mil.
Accounts Receivable was $84.7 Mil.
Revenue was 197.606 + 181.269 + 145.702 + 143.053 = $667.6 Mil.
Gross Profit was 111.745 + 102.542 + 81.866 + 78.837 = $375.0 Mil.
Total Current Assets was $200.8 Mil.
Total Assets was $2,680.6 Mil.
Property, Plant and Equipment(Net PPE) was $13.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.2 Mil.
Selling, General & Admin. Expense(SGA) was $168.5 Mil.
Total Current Liabilities was $91.0 Mil.
Long-Term Debt was $1,638.0 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)
=(85.085 / 788.438) / (84.694 / 667.63)
=0.1079159 / 0.12685769
=0.8507

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)
=(119.94 / 667.63) / (116.784 / 788.438)
=0.56167338 / 0.58220177
=0.9647

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 - (228.155 + 12.302) / 2640.999) / (1 - (200.762 + 13.089) / 2680.596)
=0.90895226 / 0.92022259
=0.9878

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
=788.438 / 667.63
=1.181

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))
=(15.244 / (15.244 + 13.089)) / (23.251 / (23.251 + 12.302))
=0.53802986 / 0.65398138
=0.8227

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)
=(179.488 / 788.438) / (168.474 / 667.63)
=0.22765011 / 0.25234636
=0.9021

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)
=((1447.032 + 86.721) / 2640.999) / ((1637.961 + 91.034) / 2680.596)
=0.58074729 / 0.64500395
=0.9004

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
=(109.743 - -0.451 - 188.564) / 2640.999
=-0.0297

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.

Prestige Brands Holdings 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.

Prestige Brands Holdings Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.11210.81771.22670.87770.88061.26061.0350.86280.9051.1223
GMI 0.97941.02051.00660.9840.99991.03270.9850.930.98680.9881
AQI 0.99251.00470.99720.94750.98561.04711.02090.98290.99561.026
SGI 1.02631.0741.0250.92820.96521.15011.31081.40590.96331.1963
DEPI 0.94990.9850.99641.01781.00011.01870.98131.55840.97941.0369
SGAI 1.03971.05661.0671.13580.96841.13311.02340.86620.99941.1333
LVGI 0.96310.92160.9021.20180.8671.15711.31940.90830.92461.1144
TATA -0.01760.0035-0.0107-0.3163-0.0312-0.0541-0.017-0.0406-0.0115-0.0296
M-score -2.45-2.54-2.28-4.25-2.72-2.40-2.36-2.36-2.64-2.38

Prestige Brands Holdings Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.83280.91120.9050.93891.22031.16031.12231.16240.72670.8507
GMI 0.97330.96360.98681.00110.99671.00380.98810.97060.96760.9647
AQI 0.99630.95140.99561.00881.02361.0661.0261.0121.00320.9878
SGI 1.13041.00380.96330.97550.99061.10291.19631.26721.2781.181
DEPI 1.23321.0430.979411.02791.04411.03690.90710.82910.8227
SGAI 0.8120.88770.99941.07751.18251.14021.13331.07020.91240.9021
LVGI 0.90380.9510.92460.94811.11641.07821.11441.07930.90360.9004
TATA -0.0256-0.0135-0.0115-0.017-0.0156-0.0232-0.0296-0.0315-0.0333-0.0297
M-score -2.56-2.62-2.64-2.63-2.42-2.37-2.38-2.30-2.63-2.59
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