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Prestige Brands Holdings Inc (NYSE:PBH)
Beneish M-Score
-2.41 (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 -2.41 suggests that the company is not a manipulator.

PBH' s 10-Year Beneish M-Score Range
Min: -4.19   Max: -2.16
Current: -2.41

-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 -2.52.


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 * 1.2221+0.528 * 0.9979+0.404 * 1.0236+0.892 * 0.9892+0.115 * 1.0279
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1728+4.679 * -0.0156-0.327 * 1.1164
=-2.41

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $96.5 Mil.
Revenue was 181.269 + 145.702 + 144.256 + 146.212 = $617.4 Mil.
Gross Profit was 102.542 + 81.866 + 80.04 + 81.809 = $346.3 Mil.
Total Current Assets was $222.4 Mil.
Total Assets was $2,725.7 Mil.
Property, Plant and Equipment(Net PPE) was $12.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.7 Mil.
Selling, General & Admin. Expense(SGA) was $157.8 Mil.
Total Current Liabilities was $111.9 Mil.
Long-Term Debt was $1,685.1 Mil.
Net Income was 16.463 + 16.732 + 16.001 + 3.13 = $52.3 Mil.
Non Operating Income was 0 + 0 + -3.274 + -15.012 = $-18.3 Mil.
Cash Flow from Operations was 27.387 + 29.671 + 30.722 + 25.262 = $113.0 Mil.
Accounts Receivable was $79.8 Mil.
Revenue was 166.945 + 142.512 + 154.513 + 160.232 = $624.2 Mil.
Gross Profit was 93.222 + 83.024 + 88.07 + 84.997 = $349.3 Mil.
Total Current Assets was $182.7 Mil.
Total Assets was $1,808.1 Mil.
Property, Plant and Equipment(Net PPE) was $11.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.2 Mil.
Selling, General & Admin. Expense(SGA) was $136.0 Mil.
Total Current Liabilities was $89.1 Mil.
Long-Term Debt was $978.7 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)
=(96.468 / 617.439) / (79.803 / 624.202)
=0.15623892 / 0.12784804
=1.2221

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)
=(81.866 / 624.202) / (102.542 / 617.439)
=0.55961532 / 0.56079548
=0.9979

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 - (222.373 + 12.42) / 2725.67) / (1 - (182.658 + 11.256) / 1808.076)
=0.91385861 / 0.89275119
=1.0236

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
=617.439 / 624.202
=0.9892

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))
=(13.206 / (13.206 + 11.256)) / (13.739 / (13.739 + 12.42))
=0.53985774 / 0.52521121
=1.0279

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)
=(157.786 / 617.439) / (136.009 / 624.202)
=0.25554913 / 0.21789261
=1.1728

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)
=((1685.111 + 111.91) / 2725.67) / ((978.698 + 89.109) / 1808.076)
=0.65929515 / 0.59057639
=1.1164

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
=(52.326 - -18.286 - 113.042) / 2725.67
=-0.0156

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 -2.41 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.77561.21080.96510.85791.07780.82820.9040.92560.94021.2221
GMI 0.95660.92290.93620.92590.94640.9690.95770.9881.00220.9979
AQI 1.01651.00441.01090.98290.98210.99630.95140.99561.00881.0236
SGI 1.36671.41591.49481.41381.25631.13681.01180.9620.97420.9892
DEPI 1.0581.32281.52251.55841.51011.23321.0430.979411.0279
SGAI 1.05821.06631.04690.8830.83090.82870.91230.99481.07071.1728
LVGI 1.34971.36931.36290.90830.90110.90380.9510.92460.94811.1164
TATA -0.0138-0.0255-0.0397-0.0406-0.0419-0.0256-0.0135-0.0115-0.017-0.0156
M-score -2.56-2.17-2.35-2.36-2.29-2.57-2.63-2.62-2.63-2.41
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