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Prestige Brands Holdings Inc (NYSE:PBH)
Beneish M-Score
-2.62 (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 -2.62 suggests that the company is not a manipulator.

PBH' s 10-Year Beneish M-Score Range
Min: -4.16   Max: -2.28
Current: -2.62

-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 -2.47.


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 * 0.9226+0.528 * 0.9855+0.404 * 0.9956+0.892 * 0.9652+0.115 * 0.9794
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0058+4.679 * -0.0115-0.327 * 0.9246
=-2.62

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $65.1 Mil.
Revenue was 144.256 + 146.212 + 168.442 + 142.971 = $601.9 Mil.
Gross Profit was 80.04 + 81.809 + 94.719 + 83.483 = $340.1 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 $137.9 Mil.
Total Current Liabilities was $84.4 Mil.
Long-Term Debt was $934.4 Mil.
Net Income was 16.001 + 3.13 + 32.792 + 20.692 = $72.6 Mil.
Non Operating Income was -3.274 + -15.012 + 0 + 0 = $-18.3 Mil.
Cash Flow from Operations was 30.722 + 25.262 + 32.8 + 22.798 = $111.6 Mil.
Accounts Receivable was $73.1 Mil.
Revenue was 154.513 + 160.232 + 161.855 + 146.997 = $623.6 Mil.
Gross Profit was 88.07 + 84.997 + 90.545 + 83.604 = $347.2 Mil.
Total Current Assets was $164.2 Mil.
Total Assets was $1,739.8 Mil.
Property, Plant and Equipment(Net PPE) was $9.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.2 Mil.
Selling, General & Admin. Expense(SGA) was $142.1 Mil.
Total Current Liabilities was $96.7 Mil.
Long-Term Debt was $970.9 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)
=(65.05 / 601.881) / (73.053 / 623.597)
=0.10807784 / 0.11714777
=0.9226

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)
=(81.809 / 623.597) / (80.04 / 601.881)
=0.55679549 / 0.56498045
=0.9855

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 - (177.185 + 9.597) / 1795.663) / (1 - (164.173 + 9.896) / 1739.799)
=0.8959816 / 0.89994879
=0.9956

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
=601.881 / 623.597
=0.9652

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))
=(13.235 / (13.235 + 9.896)) / (13.486 / (13.486 + 9.597))
=0.57217587 / 0.58423948
=0.9794

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)
=(137.949 / 601.881) / (142.097 / 623.597)
=0.22919647 / 0.22786672
=1.0058

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)
=((934.414 + 84.358) / 1795.663) / ((970.9 + 96.668) / 1739.799)
=0.56735145 / 0.61361571
=0.9246

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
=(72.615 - -18.286 - 111.582) / 1795.663
=-0.0115

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 -2.62 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 0.69441.08630.81771.22670.87770.88061.26061.0350.85790.9226
GMI 1.13150.97941.02051.00660.9840.99991.03270.9850.92590.9855
AQI 1.02140.99251.00470.99720.94750.98561.04711.02090.98290.9956
SGI 3.28791.02631.0741.0250.92820.96521.15011.31081.41380.9652
DEPI 1.01920.94990.9850.99641.01781.00011.01870.98131.55840.9794
SGAI 0.54181.03971.05661.0671.13580.96841.13311.02340.8831.0058
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 -0.65-2.47-2.54-2.28-4.25-2.72-2.40-2.36-2.36-2.62

Prestige Brands Holdings Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.91841.0351.15951.21080.98360.85790.71020.83310.88420.9226
GMI 1.01150.9850.95660.92290.93620.92590.94590.96660.95540.9855
AQI 1.08381.02091.01651.00441.01090.98290.98210.99630.95140.9956
SGI 1.30111.31081.36671.41591.49481.41381.25731.14031.0150.9652
DEPI 0.98680.98131.0581.32281.52251.55841.51011.23321.0430.9794
SGAI 0.99311.02341.05821.06631.04690.8830.83310.8380.92221.0058
LVGI 0.88651.31941.34971.36931.36290.90830.90110.90380.9510.9246
TATA -0.0329-0.017-0.0138-0.0255-0.0397-0.0406-0.0419-0.0256-0.0135-0.0115
M-score -2.36-2.36-2.20-2.17-2.34-2.36-2.63-2.56-2.65-2.62
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