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Prestige Brands Holdings Inc (NYSE:PBH)
Beneish M-Score
-2.38 (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 -2.38 suggests that the company is not a manipulator.

PBH' s 10-Year Beneish M-Score Range
Min: -4.16   Max: -2.28
Current: -2.38

-4.16
-2.28

During the past 13 years, the highest Beneish M-Score of Prestige Brands Holdings Inc was -2.28. The lowest was -4.16. And the median was -2.40.


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 * 1.1223+0.528 * 0.9881+0.404 * 1.026+0.892 * 1.1963+0.115 * 1.0369
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1333+4.679 * -0.0296-0.327 * 1.1144
=-2.38

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $85.5 Mil.
Revenue was 190.046 + 197.606 + 181.269 + 145.702 = $714.6 Mil.
Gross Profit was 110.07 + 111.745 + 102.542 + 81.866 = $406.2 Mil.
Total Current Assets was $201.7 Mil.
Total Assets was $2,669.4 Mil.
Property, Plant and Equipment(Net PPE) was $13.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.7 Mil.
Selling, General & Admin. Expense(SGA) was $180.9 Mil.
Total Current Liabilities was $99.0 Mil.
Long-Term Debt was $1,588.7 Mil.
Net Income was 23.772 + 21.293 + 16.463 + 16.732 = $78.3 Mil.
Non Operating Income was 0 + 1.133 + 0 + 0 = $1.1 Mil.
Cash Flow from Operations was 52.113 + 47.084 + 27.387 + 29.671 = $156.3 Mil.
Accounts Receivable was $63.7 Mil.
Revenue was 143.053 + 144.871 + 166.945 + 142.512 = $597.4 Mil.
Gross Profit was 78.837 + 80.468 + 93.222 + 83.024 = $335.6 Mil.
Total Current Assets was $177.2 Mil.
Total Assets was $1,795.7 Mil.
Property, Plant and Equipment(Net PPE) was $9.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.5 Mil.
Selling, General & Admin. Expense(SGA) was $133.4 Mil.
Total Current Liabilities was $84.4 Mil.
Long-Term Debt was $934.4 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)
=(85.505 / 714.623) / (63.69 / 597.381)
=0.1196505 / 0.10661538
=1.1223

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)
=(111.745 / 597.381) / (110.07 / 714.623)
=0.5617035 / 0.56844378
=0.9881

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 - (201.707 + 13.744) / 2669.405) / (1 - (177.185 + 9.597) / 1795.663)
=0.91928876 / 0.8959816
=1.026

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
=714.623 / 597.381
=1.1963

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))
=(13.486 / (13.486 + 9.597)) / (17.74 / (17.74 + 13.744))
=0.58423948 / 0.56346081
=1.0369

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)
=(180.924 / 714.623) / (133.449 / 597.381)
=0.25317405 / 0.2233901
=1.1333

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)
=((1588.711 + 99.037) / 2669.405) / ((934.414 + 84.358) / 1795.663)
=0.63225625 / 0.56735145
=1.1144

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
=(78.26 - 1.133 - 156.255) / 2669.405
=-0.0296

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 -2.38 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 1.11210.81771.22670.87770.88061.26061.0350.85790.91011.1223
GMI 0.97941.02051.00660.9840.99991.03270.9850.92590.99130.9881
AQI 0.99251.00470.99720.94750.98561.04711.02090.98290.99561.026
SGI 1.02631.0741.0250.92820.96521.15011.31081.41380.9581.1963
DEPI 0.94990.9850.99641.01781.00011.01870.98131.55840.97941.0369
SGAI 1.03971.05661.0671.13580.96841.13311.02340.8830.98041.1333
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 -2.45-2.54-2.28-4.25-2.72-2.40-2.36-2.36-2.63-2.38

Prestige Brands Holdings Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.96510.85791.07780.82820.9060.91010.94421.22711.16691.1223
GMI 0.93620.92590.94640.9690.95930.99131.00561.00111.00820.9881
AQI 1.01090.98290.98210.99630.95140.99561.00881.02361.0661.026
SGI 1.49481.41381.25631.13681.00960.9580.97010.98511.09661.1963
DEPI 1.52251.55841.51011.23321.0430.979411.02791.04411.0369
SGAI 1.04690.8830.83090.82870.90550.98041.05591.15871.11771.1333
LVGI 1.36290.90830.90110.90380.9510.92460.94811.11641.07821.1144
TATA -0.0397-0.0406-0.0419-0.0256-0.0135-0.0115-0.017-0.0156-0.0232-0.0296
M-score -2.35-2.36-2.29-2.57-2.62-2.63-2.62-2.41-2.36-2.38
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