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Prestige Brands Holdings Inc (NYSE:PBH)
Beneish M-Score
-2.58 (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 -2.58 suggests that the company is not a manipulator.

PBH' s Beneish M-Score Range Over the Past 10 Years
Min: -4.25   Max: -2.17
Current: -2.58

-4.25
-2.17

During the past 13 years, the highest Beneish M-Score of Prestige Brands Holdings Inc was -2.17. The lowest was -4.25. And the median was -2.50.


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 * 0.9656+0.528 * 0.9915+0.404 * 0.9763+0.892 * 1.0823+0.115 * 0.9797
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9116+4.679 * -0.0333-0.327 * 0.9554
=-2.58

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $87.4 Mil.
Revenue was 209.575 + 207.855 + 200.195 + 206.065 = $823.7 Mil.
Gross Profit was 121.591 + 118.251 + 116.784 + 119.94 = $476.6 Mil.
Total Current Assets was $281.4 Mil.
Total Assets was $2,878.4 Mil.
Property, Plant and Equipment(Net PPE) was $15.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.8 Mil.
Selling, General & Admin. Expense(SGA) was $186.3 Mil.
Total Current Liabilities was $100.1 Mil.
Long-Term Debt was $1,577.4 Mil.
Net Income was -5.531 + 13.936 + 27.995 + 31.803 = $68.2 Mil.
Non Operating Income was 0 + -17.519 + 0 + 0 = $-17.5 Mil.
Cash Flow from Operations was 50.751 + 37.899 + 45.861 + 47.069 = $181.6 Mil.
Accounts Receivable was $83.6 Mil.
Revenue was 192.132 + 190.046 + 197.606 + 181.269 = $761.1 Mil.
Gross Profit was 112.236 + 110.07 + 111.745 + 102.542 = $436.6 Mil.
Total Current Assets was $201.1 Mil.
Total Assets was $2,636.5 Mil.
Property, Plant and Equipment(Net PPE) was $13.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.5 Mil.
Selling, General & Admin. Expense(SGA) was $188.8 Mil.
Total Current Liabilities was $101.8 Mil.
Long-Term Debt was $1,506.5 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)
=(87.391 / 823.69) / (83.62 / 761.053)
=0.10609695 / 0.10987408
=0.9656

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)
=(436.593 / 761.053) / (476.566 / 823.69)
=0.57366964 / 0.57857446
=0.9915

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 - (281.358 + 15.08) / 2878.44) / (1 - (201.059 + 13.154) / 2636.502)
=0.89701435 / 0.91875106
=0.9763

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
=823.69 / 761.053
=1.0823

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))
=(20.499 / (20.499 + 13.154)) / (24.788 / (24.788 + 15.08))
=0.60912846 / 0.62175178
=0.9797

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)
=(186.301 / 823.69) / (188.833 / 761.053)
=0.22617854 / 0.2481207
=0.9116

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)
=((1577.414 + 100.141) / 2878.44) / ((1506.541 + 101.792) / 2636.502)
=0.58280006 / 0.61002533
=0.9554

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
=(68.203 - -17.519 - 181.58) / 2878.44
=-0.0333

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 -2.58 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

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 0.81771.22670.87770.88061.26061.0350.86280.9051.12230.9743
GMI 1.02051.00660.9840.99991.03270.9850.930.98680.98810.9809
AQI 1.00470.99720.94750.98561.04711.02090.98290.99561.02510.9911
SGI 1.0741.0250.92820.96521.15011.31081.40590.96331.19631.1282
DEPI 0.9850.99641.01781.00011.01870.98131.55840.97941.03690.9333
SGAI 1.05661.0671.13580.96841.13311.02340.86620.99941.13330.8976
LVGI 0.92160.9021.20180.8671.15711.31940.90830.92461.10770.9346
TATA -0.0337-0.0107-0.3163-0.0312-0.0541-0.017-0.0406-0.0115-0.03-0.0192
M-score -2.71-2.28-4.25-2.72-2.40-2.36-2.36-2.64-2.38-2.46

Prestige Brands Holdings Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.9050.93891.22031.16031.12231.16240.72670.85070.97430.9656
GMI 0.98681.00110.99671.00380.98810.97060.96760.96470.98090.9915
AQI 0.99561.00881.02361.0661.02511.0121.00320.98780.99110.9763
SGI 0.96330.97550.99061.10291.19631.26721.2781.1811.12821.0823
DEPI 0.979411.02791.04411.03690.90710.82910.82270.93330.9797
SGAI 0.99941.07751.18251.14021.13331.07020.91240.90210.89760.9116
LVGI 0.92460.94811.11641.07821.10771.07930.90360.90040.93460.9554
TATA -0.0115-0.017-0.0156-0.0232-0.03-0.0315-0.0333-0.0297-0.0192-0.0333
M-score -2.64-2.63-2.42-2.37-2.38-2.30-2.63-2.59-2.46-2.58
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