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Prestige Brands Holdings Inc (NYSE:PBH)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

PBH' s Beneish M-Score Range Over the Past 10 Years
Min: -4.25   Max: -2.28
Current: -2.46

-4.25
-2.28

During the past 13 years, the highest Beneish M-Score of Prestige Brands Holdings Inc was -2.28. The lowest was -4.25. And the median was -2.43.


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 * 0.9743+0.528 * 0.9809+0.404 * 0.9911+0.892 * 1.1282+0.115 * 0.9333
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8976+4.679 * -0.0192-0.327 * 0.9346
=-2.46

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $94.0 Mil.
Revenue was 207.855 + 200.195 + 206.065 + 192.132 = $806.2 Mil.
Gross Profit was 118.251 + 116.784 + 119.94 + 112.236 = $467.2 Mil.
Total Current Assets was $249.0 Mil.
Total Assets was $2,948.8 Mil.
Property, Plant and Equipment(Net PPE) was $15.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.7 Mil.
Selling, General & Admin. Expense(SGA) was $183.2 Mil.
Total Current Liabilities was $106.7 Mil.
Long-Term Debt was $1,625.3 Mil.
Net Income was 13.936 + 27.995 + 31.803 + 26.173 = $99.9 Mil.
Non Operating Income was -17.519 + 0 + 0 + -0.451 = $-18.0 Mil.
Cash Flow from Operations was 37.899 + 45.861 + 47.069 + 43.521 = $174.4 Mil.
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 $2,642.0 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 $1,561.3 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)
=(93.986 / 806.247) / (85.505 / 714.623)
=0.11657222 / 0.1196505
=0.9743

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)
=(116.784 / 714.623) / (118.251 / 806.247)
=0.56844378 / 0.57948867
=0.9809

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 - (249.013 + 15.54) / 2948.791) / (1 - (201.707 + 13.744) / 2641.967)
=0.91028425 / 0.91845053
=0.9911

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
=806.247 / 714.623
=1.1282

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))
=(17.74 / (17.74 + 13.744)) / (23.676 / (23.676 + 15.54))
=0.56346081 / 0.60373317
=0.9333

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)
=(183.22 / 806.247) / (180.924 / 714.623)
=0.22725046 / 0.25317405
=0.8976

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)
=((1625.309 + 106.684) / 2948.791) / ((1561.273 + 99.037) / 2641.967)
=0.58735699 / 0.62843707
=0.9346

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
=(99.907 - -17.97 - 174.35) / 2948.791
=-0.0192

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 -2.46 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 0.81771.22670.85090.88011.30121.0350.85790.90331.13070.9743
GMI 1.02051.00660.98821.00161.02650.9850.92590.98550.99390.9809
AQI 1.00470.99720.94750.98561.04711.02090.98290.99561.02510.9911
SGI 1.0741.0250.95750.96581.11421.31081.41380.96521.18731.1282
DEPI 0.9850.99641.01781.00011.01870.98131.55840.97941.03690.9333
SGAI 1.05661.0671.10620.9681.1641.02340.8831.00581.10460.8976
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 -2.71-2.28-4.24-2.72-2.40-2.36-2.36-2.64-2.38-2.46

Prestige Brands Holdings Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.91120.9050.93891.22031.16031.12231.16240.72670.85070.9743
GMI 0.96360.98681.00110.99671.00380.98810.97060.96760.96470.9809
AQI 0.95140.99561.00881.02361.0661.02511.0121.00320.98780.9911
SGI 1.00380.96330.97550.99061.10291.19631.26721.2781.1811.1282
DEPI 1.0430.979411.02791.04411.03690.90710.82910.82270.9333
SGAI 0.88770.99941.07751.18251.14021.13331.07020.91240.90210.8976
LVGI 0.9510.92460.94811.11641.07821.10771.07930.90360.90040.9346
TATA -0.0135-0.0115-0.017-0.0156-0.0232-0.03-0.0315-0.0333-0.0297-0.0192
M-score -2.62-2.64-2.63-2.42-2.37-2.38-2.30-2.63-2.59-2.46
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