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Iconix Brand Group Inc (NAS:ICON)
Beneish M-Score
-3.51 (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.

Iconix Brand Group Inc has a M-score of -3.51 suggests that the company is not a manipulator.

ICON' s Beneish M-Score Range Over the Past 10 Years
Min: -4.72   Max: 7.8
Current: -3.51

-4.72
7.8

During the past 13 years, the highest Beneish M-Score of Iconix Brand Group Inc was 7.80. The lowest was -4.72. And the median was -2.39.


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 Iconix Brand Group 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 * 0.7948+0.528 * 1+0.404 * 0.9775+0.892 * 0.9925+0.115 * 1.175
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2054+4.679 * -0.1656-0.327 * 1.1022
=-3.51

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $95.8 Mil.
Revenue was 95.743 + 94.632 + 94.653 + 91.332 = $376.4 Mil.
Gross Profit was 95.743 + 94.632 + 94.653 + 91.332 = $376.4 Mil.
Total Current Assets was $352.5 Mil.
Total Assets was $2,466.5 Mil.
Property, Plant and Equipment(Net PPE) was $7.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.3 Mil.
Selling, General & Admin. Expense(SGA) was $220.2 Mil.
Total Current Liabilities was $150.0 Mil.
Long-Term Debt was $1,275.1 Mil.
Net Income was 11.582 + 18.616 + -263.014 + -5.387 = $-238.2 Mil.
Non Operating Income was 4.968 + 0.2 + 12.586 + -1.083 = $16.7 Mil.
Cash Flow from Operations was 26.634 + 32.051 + 55.227 + 39.75 = $153.7 Mil.
Accounts Receivable was $121.5 Mil.
Revenue was 97.398 + 95.814 + 96.009 + 89.965 = $379.2 Mil.
Gross Profit was 97.398 + 95.814 + 96.009 + 89.965 = $379.2 Mil.
Total Current Assets was $367.3 Mil.
Total Assets was $2,970.1 Mil.
Property, Plant and Equipment(Net PPE) was $7.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.8 Mil.
Selling, General & Admin. Expense(SGA) was $184.1 Mil.
Total Current Liabilities was $426.3 Mil.
Long-Term Debt was $1,130.7 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)
=(95.842 / 376.36) / (121.491 / 379.186)
=0.25465512 / 0.32039949
=0.7948

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)
=(379.186 / 379.186) / (376.36 / 376.36)
=1 / 1
=1

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 - (352.501 + 7.403) / 2466.481) / (1 - (367.295 + 7.596) / 2970.059)
=0.85408199 / 0.87377658
=0.9775

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
=376.36 / 379.186
=0.9925

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))
=(5.793 / (5.793 + 7.596)) / (4.315 / (4.315 + 7.403))
=0.43266861 / 0.3682369
=1.175

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)
=(220.231 / 376.36) / (184.068 / 379.186)
=0.58516048 / 0.48542931
=1.2054

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)
=((1275.139 + 149.968) / 2466.481) / ((1130.667 + 426.335) / 2970.059)
=0.57778957 / 0.52423268
=1.1022

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
=(-238.203 - 16.671 - 153.662) / 2466.481
=-0.1656

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.

Iconix Brand Group Inc has a M-score of -3.51 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.

Iconix Brand Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.45951.03161.16721.2440.72941.09361.11850.96461.23470.9538
GMI 1111111111
AQI 0.95681.0850.97320.93161.04540.98210.98280.98131.04440.9781
SGI 2.67591.98281.35471.07061.43311.11210.95671.10391.00230.9686
DEPI 0.98720.79011.23371.28691.12891.07731.00870.84571.11481.2404
SGAI 0.66040.911.23131.00421.21810.91571.02521.13371.08771.1466
LVGI 0.49072.14490.85560.83720.85310.93881.24131.35151.01021.1627
TATA 0.0011-0.0149-0.0185-0.0261-0.0304-0.0304-0.0437-0.0391-0.0384-0.1787
M-score -0.35-1.99-2.07-2.26-2.44-2.40-2.70-2.77-2.43-3.45

Iconix Brand Group Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.97791.27941.33691.23471.0680.89180.74970.95380.80450.7948
GMI 1111111111
AQI 1.07071.09481.0411.04441.02651.00241.01210.97810.94460.9775
SGI 1.06880.95920.86961.00230.9521.00871.06090.96861.00290.9925
DEPI 0.8850.93261.01421.11481.24151.20711.23381.24041.14351.175
SGAI 1.1641.22421.25611.08771.05121.00091.03351.14011.19851.2054
LVGI 1.13660.99040.97241.01021.01751.00961.00531.16271.12561.1022
TATA -0.0417-0.0401-0.039-0.0384-0.0349-0.0494-0.0546-0.1787-0.1733-0.1656
M-score -2.69-2.45-2.49-2.43-2.60-2.78-2.89-3.45-3.55-3.51
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