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Prestige Brands Holdings Inc (NYSE:PBH)
Beneish M-Score
-2.60 (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 -2.60 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: -2.6

-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 -2.51.


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 * 0.9782+0.528 * 1.0009+0.404 * 0.9778+0.892 * 1.0596+0.115 * 0.9798
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9871+4.679 * -0.0346-0.327 * 0.9452
=-2.60

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $92.9 Mil.
Revenue was 215.052 + 209.575 + 207.855 + 200.195 = $832.7 Mil.
Gross Profit was 123.965 + 121.591 + 118.251 + 116.784 = $480.6 Mil.
Total Current Assets was $279.7 Mil.
Total Assets was $2,831.0 Mil.
Property, Plant and Equipment(Net PPE) was $13.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.1 Mil.
Selling, General & Admin. Expense(SGA) was $189.3 Mil.
Total Current Liabilities was $114.3 Mil.
Long-Term Debt was $1,479.7 Mil.
Net Income was 32.195 + -5.531 + 13.936 + 27.995 = $68.6 Mil.
Non Operating Income was 0 + 0 + -17.519 + 0 = $-17.5 Mil.
Cash Flow from Operations was 49.531 + 50.751 + 37.899 + 45.861 = $184.0 Mil.
Accounts Receivable was $89.6 Mil.
Revenue was 206.065 + 192.132 + 190.046 + 197.606 = $785.8 Mil.
Gross Profit was 119.94 + 112.236 + 110.07 + 111.745 = $454.0 Mil.
Total Current Assets was $205.8 Mil.
Total Assets was $2,626.9 Mil.
Property, Plant and Equipment(Net PPE) was $12.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.3 Mil.
Selling, General & Admin. Expense(SGA) was $181.0 Mil.
Total Current Liabilities was $93.0 Mil.
Long-Term Debt was $1,471.9 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)
=(92.869 / 832.677) / (89.595 / 785.849)
=0.11153064 / 0.11401045
=0.9782

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)
=(453.991 / 785.849) / (480.591 / 832.677)
=0.57770768 / 0.57716377
=1.0009

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 - (279.673 + 13.732) / 2830.978) / (1 - (205.779 + 12.92) / 2626.891)
=0.89635914 / 0.91674607
=0.9778

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
=832.677 / 785.849
=1.0596

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))
=(22.332 / (22.332 + 12.92)) / (25.117 / (25.117 + 13.732))
=0.63349597 / 0.64652887
=0.9798

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)
=(189.333 / 832.677) / (181.016 / 785.849)
=0.22737868 / 0.23034451
=0.9871

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)
=((1479.663 + 114.311) / 2830.978) / ((1471.864 + 93.028) / 2626.891)
=0.56304712 / 0.59572019
=0.9452

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
=(68.595 - -17.519 - 184.042) / 2830.978
=-0.0346

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 -2.60 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.93891.22031.16031.12231.16240.72670.85070.97430.96560.9782
GMI 1.00110.99671.00380.98810.97060.96760.96470.98090.99151.0009
AQI 1.00881.02361.0661.02511.0121.00320.98780.99110.97630.9778
SGI 0.97550.99061.10291.19631.26721.2781.1811.12821.08231.0596
DEPI 11.02791.04411.03690.90710.82910.82270.93330.97970.9798
SGAI 1.07751.18251.14021.13331.07020.91240.90210.89760.91160.9871
LVGI 0.94811.11641.07821.10771.07930.90360.90040.93460.95540.9452
TATA -0.017-0.0156-0.0232-0.03-0.0315-0.0333-0.0297-0.0192-0.0333-0.0346
M-score -2.63-2.42-2.37-2.38-2.30-2.63-2.59-2.46-2.58-2.60
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