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Prestige Brands Holdings Inc (NYSE:PBH)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

PBH' s 10-Year Beneish M-Score Range
Min: -4.38   Max: -2.16
Current: -2.61

-4.38
-2.16

During the past 13 years, the highest Beneish M-Score of Prestige Brands Holdings Inc was -2.16. The lowest was -4.38. And the median was -2.54.


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 * 0.9621+0.528 * 1.0002+0.404 * 1.0088+0.892 * 0.9766+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0793+4.679 * -0.017-0.327 * 0.9481
=-2.61

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $58.2 Mil.
Revenue was 145.702 + 144.256 + 146.212 + 168.442 = $604.6 Mil.
Gross Profit was 81.866 + 80.04 + 81.809 + 94.719 = $338.4 Mil.
Total Current Assets was $160.1 Mil.
Total Assets was $1,854.0 Mil.
Property, Plant and Equipment(Net PPE) was $10.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.2 Mil.
Selling, General & Admin. Expense(SGA) was $143.3 Mil.
Total Current Liabilities was $78.3 Mil.
Long-Term Debt was $969.6 Mil.
Net Income was 16.732 + 16.001 + 3.13 + 32.792 = $68.7 Mil.
Non Operating Income was 0 + -3.274 + -15.012 + 0 = $-18.3 Mil.
Cash Flow from Operations was 29.671 + 30.722 + 25.262 + 32.8 = $118.5 Mil.
Accounts Receivable was $62.0 Mil.
Revenue was 142.512 + 154.513 + 160.232 + 161.855 = $619.1 Mil.
Gross Profit was 83.024 + 88.07 + 84.997 + 90.545 = $346.6 Mil.
Total Current Assets was $163.0 Mil.
Total Assets was $1,736.1 Mil.
Property, Plant and Equipment(Net PPE) was $10.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.2 Mil.
Selling, General & Admin. Expense(SGA) was $135.9 Mil.
Total Current Liabilities was $81.7 Mil.
Long-Term Debt was $953.2 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)
=(58.238 / 604.612) / (61.981 / 619.112)
=0.09632293 / 0.10011274
=0.9621

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)
=(80.04 / 619.112) / (81.866 / 604.612)
=0.55989223 / 0.55975402
=1.0002

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 - (160.097 + 10.673) / 1853.95) / (1 - (162.984 + 10.697) / 1736.094)
=0.90788856 / 0.89995876
=1.0088

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
=604.612 / 619.112
=0.9766

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))
=(13.208 / (13.208 + 10.697)) / (13.179 / (13.179 + 10.673))
=0.55252039 / 0.55253228
=1

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)
=(143.277 / 604.612) / (135.936 / 619.112)
=0.23697346 / 0.21956609
=1.0793

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)
=((969.558 + 78.319) / 1853.95) / ((953.245 + 81.735) / 1736.094)
=0.56521319 / 0.59615436
=0.9481

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
=(68.655 - -18.286 - 118.455) / 1853.95
=-0.017

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 -2.61 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 0.69441.08630.81771.22670.85090.88011.30121.0350.85790.9226
GMI 1.13150.97941.02051.00660.98821.00161.02650.9850.92590.9855
AQI 1.02140.99251.00470.99720.94750.98561.04711.02090.98290.9956
SGI 3.28791.02631.0741.0250.95750.96581.11421.31081.41380.9652
DEPI 1.01750.94990.9850.99641.01781.00011.01870.98131.55840.9794
SGAI 1.36861.03971.05661.0671.10620.9681.1641.02340.8831.0058
LVGI 1.07450.96310.92160.9021.20180.8671.15711.31940.90830.9246
TATA -0.014-0.01760.0035-0.0107-0.3163-0.0312-0.0541-0.017-0.0406-0.0115
M-score -0.79-2.47-2.54-2.28-4.24-2.72-2.40-2.36-2.36-2.62

Prestige Brands Holdings Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.04181.15951.21080.98360.85790.71070.83380.88480.92330.9621
GMI 0.98390.95660.92290.93620.92590.94640.96720.95590.98611.0002
AQI 1.02091.01651.00441.01090.98290.98210.99630.95140.99561.0088
SGI 1.30231.36671.41591.49481.41381.25631.13951.01430.96440.9766
DEPI 0.98131.0581.32281.52251.55841.51011.23321.0430.97941
SGAI 1.02871.05821.06631.04690.8830.83090.83580.91991.00331.0793
LVGI 1.31941.34971.36931.36290.90830.90110.90380.9510.92460.9481
TATA -0.017-0.0138-0.0255-0.0397-0.0406-0.0419-0.0256-0.0135-0.0115-0.017
M-score -2.36-2.20-2.17-2.34-2.36-2.63-2.56-2.64-2.62-2.61
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