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Abercrombie & Fitch Co (NYSE:ANF)
Beneish M-Score
-3.01 (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 -3.01 suggests that the company is not a manipulator.

ANF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85   Max: 20.74
Current: -3.01

-3.85
20.74

During the past 13 years, the highest Beneish M-Score of Abercrombie & Fitch Co was 20.74. The lowest was -3.85. And the median was -2.69.


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 * 1.0833+0.528 * 0.981+0.404 * 0.9951+0.892 * 0.9625+0.115 * 0.9802
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0091+4.679 * -0.1144-0.327 * 1.0563
=-3.01

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $62 Mil.
Revenue was 685.483 + 1112.93 + 878.572 + 817.756 = $3,495 Mil.
Gross Profit was 425.721 + 676.345 + 559.787 + 509.862 = $2,172 Mil.
Total Current Assets was $1,095 Mil.
Total Assets was $2,344 Mil.
Property, Plant and Equipment(Net PPE) was $886 Mil.
Depreciation, Depletion and Amortization(DDA) was $211 Mil.
Selling, General & Admin. Expense(SGA) was $2,059 Mil.
Total Current Liabilities was $478 Mil.
Long-Term Debt was $337 Mil.
Net Income was -39.587 + 57.741 + 41.891 + -0.81 = $59 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -76.283 + 243.401 + 87.293 + 73.03 = $327 Mil.
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.



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)
=(61.69 / 3494.741) / (59.169 / 3631.024)
=0.01765224 / 0.0162954
=1.0833

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)
=(2213.46 / 3631.024) / (2171.715 / 3494.741)
=0.60959663 / 0.62142373
=0.981

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 - (1094.528 + 886.346) / 2344.182) / (1 - (1046.742 + 949.587) / 2364.592)
=0.15498285 / 0.15574061
=0.9951

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
=3494.741 / 3631.024
=0.9625

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))
=(220.815 / (220.815 + 949.587)) / (211.255 / (211.255 + 886.346))
=0.18866595 / 0.19246976
=0.9802

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)
=(2058.929 / 3494.741) / (2119.891 / 3631.024)
=0.58915067 / 0.58382732
=1.0091

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)
=((336.615 + 477.645) / 2344.182) / ((340.103 + 437.503) / 2364.592)
=0.34735358 / 0.3288542
=1.0563

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
=(59.235 - 0 - 327.441) / 2344.182
=-0.1144

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 -3.01 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

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.8671.1011.06252.03540.75510.91721.02780.74750.8561.1436
GMI 0.99870.9941.0011.04031.00611.04230.98220.99821.01241.0078
AQI 1.7471.49873.12080.91441.02180.93811.071.12611.06420.9929
SGI 1.19161.13010.92910.84061.18441.19871.08480.91270.90940.9398
DEPI 1.09180.92860.71990.86170.96881.02041.11310.85010.90730.9837
SGAI 0.99681.01061.11191.14940.94440.94621.00231.06670.99491.0211
LVGI 0.8270.93130.91260.95571.15371.14151.03991.03981.25781.0801
TATA -0.0712-0.1332-0.0767-0.1401-0.0801-0.071-0.1497-0.0424-0.104-0.1128
M-score -2.40-2.68-2.01-2.37-2.95-2.75-3.06-2.98-3.24-2.96

Abercrombie & Fitch Co Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 0.74750.82780.89070.81980.8560.95481.08881.06251.14361.0833
GMI 0.99821.03371.04651.04521.01241.01371.00610.99641.00780.981
AQI 1.12611.21021.1511.0611.06421.02071.01451.00590.99290.9951
SGI 0.91270.9260.91470.91540.90940.88550.87950.89850.93980.9625
DEPI 0.85010.88450.90090.95320.90730.9170.94470.95720.98370.9802
SGAI 1.06671.04161.02290.98750.99491.01321.02911.04411.02111.0091
LVGI 1.03981.00731.05681.20521.25781.30231.25441.1711.08011.0563
TATA -0.0424-0.0938-0.1249-0.1404-0.104-0.1043-0.1311-0.1303-0.1128-0.1144
M-score -2.98-3.06-3.19-3.40-3.24-3.21-3.20-3.19-2.96-3.01
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