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Prestige Brands Holdings Inc (NYSE:PBH)
Beneish M-Score
-2.37 (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 -2.37 suggests that the company is not a manipulator.

PBH' s 10-Year Beneish M-Score Range
Min: -4.19   Max: -2.16
Current: -2.37

-4.19
-2.16

During the past 13 years, the highest Beneish M-Score of Prestige Brands Holdings Inc was -2.16. The lowest was -4.19. 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 * 1.1591+0.528 * 1.003+0.404 * 1.066+0.892 * 1.1039+0.115 * 1.0441
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1399+4.679 * -0.0232-0.327 * 1.0782
=-2.37

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $84.7 Mil.
Revenue was 197.606 + 181.269 + 145.702 + 147.553 = $672.1 Mil.
Gross Profit was 111.745 + 102.542 + 81.866 + 83.337 = $379.5 Mil.
Total Current Assets was $200.8 Mil.
Total Assets was $2,680.6 Mil.
Property, Plant and Equipment(Net PPE) was $13.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.2 Mil.
Selling, General & Admin. Expense(SGA) was $173.0 Mil.
Total Current Liabilities was $91.0 Mil.
Long-Term Debt was $1,638.0 Mil.
Net Income was 21.293 + 16.463 + 16.732 + 16.001 = $70.5 Mil.
Non Operating Income was 1.133 + 0 + 0 + -3.274 = $-2.1 Mil.
Cash Flow from Operations was 47.084 + 27.387 + 29.671 + 30.722 = $134.9 Mil.
Accounts Receivable was $66.2 Mil.
Revenue was 144.871 + 166.945 + 142.512 + 154.513 = $608.8 Mil.
Gross Profit was 80.468 + 93.222 + 83.024 + 88.07 = $344.8 Mil.
Total Current Assets was $244.5 Mil.
Total Assets was $1,864.8 Mil.
Property, Plant and Equipment(Net PPE) was $10.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.5 Mil.
Selling, General & Admin. Expense(SGA) was $137.5 Mil.
Total Current Liabilities was $134.1 Mil.
Long-Term Debt was $981.5 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)
=(84.694 / 672.13) / (66.188 / 608.841)
=0.12600836 / 0.10871147
=1.1591

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)
=(102.542 / 608.841) / (111.745 / 672.13)
=0.56629563 / 0.56460804
=1.003

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 - (200.762 + 13.089) / 2680.596) / (1 - (244.501 + 10.528) / 1864.846)
=0.92022259 / 0.86324394
=1.066

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
=672.13 / 608.841
=1.1039

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))
=(13.494 / (13.494 + 10.528)) / (15.244 / (15.244 + 13.089))
=0.56173508 / 0.53802986
=1.0441

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)
=(172.974 / 672.13) / (137.459 / 608.841)
=0.257352 / 0.22577159
=1.1399

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)
=((1637.961 + 91.034) / 2680.596) / ((981.511 + 134.063) / 1864.846)
=0.64500395 / 0.5982124
=1.0782

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
=(70.489 - -2.141 - 134.864) / 2680.596
=-0.0232

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 -2.37 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 0.67831.11210.81771.22670.87770.88061.26061.0350.85790.9226
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 -0.67-2.45-2.54-2.28-4.25-2.72-2.40-2.36-2.36-2.62

Prestige Brands Holdings Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.21080.96510.85791.07780.82820.9060.92260.93711.21821.1591
GMI 0.92290.93620.92590.94640.9690.95930.98550.99970.99541.003
AQI 1.00441.01090.98290.98210.99630.95140.99561.00881.02361.066
SGI 1.41591.49481.41381.25631.13681.00960.96520.97730.99231.1039
DEPI 1.32281.52251.55841.51011.23321.0430.979411.02791.0441
SGAI 1.06631.04690.8830.83090.82870.90551.00581.08191.18361.1399
LVGI 1.36931.36290.90830.90110.90380.9510.92460.94811.11641.0782
TATA -0.0255-0.0397-0.0406-0.0419-0.0256-0.0135-0.0115-0.017-0.0156-0.0232
M-score -2.17-2.35-2.36-2.29-2.57-2.62-2.62-2.63-2.42-2.37
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