AVP has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of Avon Products Inc was -1.99. The lowest was -4.28. And the median was -2.52.
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 Avon Products 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 * 1.0667||+||0.528 * 1.0063||+||0.404 * 0.7442||+||0.892 * 0.8055||+||0.115 * 0.9946|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0456||+||4.679 * -0.3109||-||0.327 * 1.3729|
|This Year (Dec15) TTM:||Last Year (Dec14) TTM:|
|Accounts Receivable was $443 Mil.|
Revenue was 876 + 1666.9 + 1823.4 + 1794.2 = $6,161 Mil.
Gross Profit was 504 + 1014.2 + 1110 + 1086.9 = $3,715 Mil.
Total Current Assets was $2,341 Mil.
Total Assets was $3,880 Mil.
Property, Plant and Equipment(Net PPE) was $767 Mil.
Depreciation, Depletion and Amortization(DDA) was $126 Mil.
Selling, General & Admin. Expense(SGA) was $3,543 Mil.
Total Current Liabilities was $2,195 Mil.
Long-Term Debt was $2,160 Mil.
Net Income was -333.4 + -697 + 28.8 + -147.3 = $-1,149 Mil.
Non Operating Income was -25.4 + 11.3 + -0.8 + -19.4 = $-34 Mil.
Cash Flow from Operations was 188.1 + 13.2 + 88.2 + -198.1 = $91 Mil.
|Accounts Receivable was $516 Mil.
Revenue was 1137.6 + 2138.2 + 2188.6 + 2183.6 = $7,648 Mil.
Gross Profit was 710.7 + 1324.3 + 1377.9 + 1228.2 = $4,641 Mil.
Total Current Assets was $3,065 Mil.
Total Assets was $5,597 Mil.
Property, Plant and Equipment(Net PPE) was $1,037 Mil.
Depreciation, Depletion and Amortization(DDA) was $169 Mil.
Selling, General & Admin. Expense(SGA) was $4,207 Mil.
Total Current Liabilities was $2,147 Mil.
Long-Term Debt was $2,429 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(443 / 6160.5)||/||(515.6 / 7648)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(1014.2 / 7648)||/||(504 / 6160.5)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (2341.1 + 766.9) / 3879.5)||/||(1 - (3064.5 + 1036.8) / 5596.8)|
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.
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))|
|=||(169.4 / (169.4 + 1036.8))||/||(126.1 / (126.1 + 766.9))|
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)|
|=||(3543.2 / 6160.5)||/||(4206.8 / 7648)|
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)|
|=||((2159.6 + 2195.1) / 3879.5)||/||((2428.7 + 2147.2) / 5596.8)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-1148.9 - -34.3||-||91.4)||/||3879.5|
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.
Avon Products Inc has a M-score of -4.28 suggests that the company will not be a manipulator.
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
Avon Products Inc Annual Data
Avon Products Inc Quarterly Data