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Abercrombie & Fitch Co (NYSE:ANF)
Beneish M-Score
-3.21 (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.

Abercrombie & Fitch Co has a M-score of -3.21 suggests that the company is not a manipulator.

ANF' s 10-Year Beneish M-Score Range
Min: -3.87   Max: 20.72
Current: -3.21

-3.87
20.72

During the past 13 years, the highest Beneish M-Score of Abercrombie & Fitch Co was 20.72. The lowest was -3.87. And the median was -2.70.


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 Abercrombie & Fitch Co 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 * 0.9548+0.528 * 1.0137+0.404 * 1.0207+0.892 * 0.8855+0.115 * 0.917
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0132+4.679 * -0.1043-0.327 * 1.3023
=-3.21

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $59 Mil.
Revenue was 709.422 + 1119.544 + 911.453 + 890.605 = $3,631 Mil.
Gross Profit was 411.549 + 681.885 + 567.07 + 552.956 = $2,213 Mil.
Total Current Assets was $1,047 Mil.
Total Assets was $2,365 Mil.
Property, Plant and Equipment(Net PPE) was $950 Mil.
Depreciation, Depletion and Amortization(DDA) was $221 Mil.
Selling, General & Admin. Expense(SGA) was $2,120 Mil.
Total Current Liabilities was $438 Mil.
Long-Term Debt was $340 Mil.
Net Income was -63.246 + 44.388 + 18.227 + 12.877 = $12 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -93.783 + 283.016 + 53.794 + 15.81 = $259 Mil.
Accounts Receivable was $70 Mil.
Revenue was 822.428 + 1299.137 + 1033.293 + 945.698 = $4,101 Mil.
Gross Profit was 511.659 + 767.106 + 651.04 + 604.122 = $2,534 Mil.
Total Current Assets was $1,053 Mil.
Total Assets was $2,566 Mil.
Property, Plant and Equipment(Net PPE) was $1,122 Mil.
Depreciation, Depletion and Amortization(DDA) was $235 Mil.
Selling, General & Admin. Expense(SGA) was $2,363 Mil.
Total Current Liabilities was $470 Mil.
Long-Term Debt was $178 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)
=(59.169 / 3631.024) / (69.983 / 4100.556)
=0.0162954 / 0.01706671
=0.9548

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)
=(681.885 / 4100.556) / (411.549 / 3631.024)
=0.61794718 / 0.60959663
=1.0137

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 - (1046.742 + 949.587) / 2364.592) / (1 - (1053.026 + 1121.777) / 2566.393)
=0.15574061 / 0.1525838
=1.0207

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
=3631.024 / 4100.556
=0.8855

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))
=(234.678 / (234.678 + 1121.777)) / (220.815 / (220.815 + 949.587))
=0.17300832 / 0.18866595
=0.917

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)
=(2119.891 / 3631.024) / (2362.717 / 4100.556)
=0.58382732 / 0.5761943
=1.0132

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)
=((340.103 + 437.503) / 2364.592) / ((177.941 + 470.102) / 2566.393)
=0.3288542 / 0.25251121
=1.3023

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
=(12.246 - 0 - 258.837) / 2364.592
=-0.1043

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.

Abercrombie & Fitch Co has a M-score of -3.21 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.

Abercrombie & Fitch Co Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 0.80460.8671.1011.06252.03540.75510.91721.02780.74750.856
GMI 0.99810.99870.9941.0011.04031.00611.04230.98220.99821.0124
AQI 0.77581.7471.49873.12080.91441.02180.93811.071.12611.0642
SGI 1.37771.19161.13010.92910.84061.18441.19871.08480.91270.9094
DEPI 0.94871.09180.92860.71990.86170.96881.02041.11310.85010.9073
SGAI 0.95570.99681.01061.11191.14940.94440.97470.97291.06670.9949
LVGI 0.88740.8270.93130.91260.95571.15371.14151.03991.03981.2578
TATA -0.0699-0.0756-0.1378-0.0767-0.1401-0.0801-0.071-0.1497-0.0424-0.104
M-score -2.70-2.42-2.71-2.01-2.37-2.95-2.75-3.06-2.98-3.24

Abercrombie & Fitch Co Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1.02781.19130.9430.96750.74750.82780.89070.81980.8560.9548
GMI 0.98220.94010.93080.95340.99821.03371.04651.04521.01241.0137
AQI 1.070.96451.04161.07991.12611.21021.1511.0611.06421.0207
SGI 1.08481.04381.0340.98060.91270.9260.91470.91540.90940.8855
DEPI 1.11311.00510.94890.85550.85010.88450.90090.95320.90730.917
SGAI 0.97290.98150.98481.0121.06671.04161.02290.98750.99491.0132
LVGI 1.03991.25721.03271.03391.03981.00731.05681.20521.25781.3023
TATA -0.1486-0.1143-0.0895-0.0312-0.0424-0.0938-0.1249-0.1404-0.104-0.1043
M-score -3.05-2.93-2.95-2.70-2.98-3.06-3.19-3.40-3.24-3.21
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