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Iconix Brand Group Inc (NAS:ICON)
Beneish M-Score
-2.38 (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 -2.38 suggests that the company is not a manipulator.

ICON' s 10-Year Beneish M-Score Range
Min: -4.72   Max: 7.82
Current: -2.38

-4.72
7.82

During the past 13 years, the highest Beneish M-Score of Iconix Brand Group Inc was 7.82. The lowest was -4.72. And the median was -2.36.


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 * 1.0746+0.528 * 1+0.404 * 1.0948+0.892 * 1.1419+0.115 * 0.9328
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.045+4.679 * -0.0263-0.327 * 0.9904
=-2.38

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $135.0 Mil.
Revenue was 118.943 + 116.138 + 105.264 + 107.175 = $447.5 Mil.
Gross Profit was 118.943 + 116.138 + 105.264 + 107.175 = $447.5 Mil.
Total Current Assets was $356.9 Mil.
Total Assets was $2,844.6 Mil.
Property, Plant and Equipment(Net PPE) was $8.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.0 Mil.
Selling, General & Admin. Expense(SGA) was $185.3 Mil.
Total Current Liabilities was $732.1 Mil.
Long-Term Debt was $745.0 Mil.
Net Income was 35.319 + 59.768 + 26.146 + 28.997 = $150.2 Mil.
Non Operating Income was 5.675 + 3.122 + 4.541 + -3.388 = $10.0 Mil.
Cash Flow from Operations was 30.491 + 53.74 + 76.788 + 54.049 = $215.1 Mil.
Accounts Receivable was $110.0 Mil.
Revenue was 115.125 + 105.062 + 85.131 + 86.59 = $391.9 Mil.
Gross Profit was 115.125 + 105.062 + 85.131 + 86.59 = $391.9 Mil.
Total Current Assets was $580.9 Mil.
Total Assets was $2,896.3 Mil.
Property, Plant and Equipment(Net PPE) was $9.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.0 Mil.
Selling, General & Admin. Expense(SGA) was $155.3 Mil.
Total Current Liabilities was $136.1 Mil.
Long-Term Debt was $1,382.4 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)
=(135.045 / 447.52) / (110.049 / 391.908)
=0.30176305 / 0.28080315
=1.0746

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)
=(116.138 / 391.908) / (118.943 / 447.52)
=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 - (356.901 + 8.217) / 2844.612) / (1 - (580.933 + 9.517) / 2896.325)
=0.87164576 / 0.79613821
=1.0948

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
=447.52 / 391.908
=1.1419

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))
=(9.038 / (9.038 + 9.517)) / (8.98 / (8.98 + 8.217))
=0.48709243 / 0.5221841
=0.9328

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)
=(185.273 / 447.52) / (155.265 / 391.908)
=0.41399937 / 0.39617716
=1.045

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)
=((745.013 + 732.061) / 2844.612) / ((1382.392 + 136.129) / 2896.325)
=0.51925324 / 0.52429234
=0.9904

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
=(150.23 - 9.95 - 215.068) / 2844.612
=-0.0263

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 -2.38 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.25873.80561.45951.03161.16721.2440.72941.09361.11850.9708
GMI 0.7280.300811111111
AQI 1.28371.07070.95681.0850.97320.93161.04540.98210.98280.9787
SGI 0.52510.43722.67591.98281.35471.07061.43311.11210.95671.2227
DEPI 0.96681.25430.98720.79011.23371.28691.12891.07731.00870.8457
SGAI 1.04461.79170.66040.911.23131.00421.21810.91511.02591.0356
LVGI 0.80490.87390.49072.14490.85560.83720.85310.93881.24131.3498
TATA -0.20730.0240.0047-0.0194-0.0185-0.0261-0.0304-0.0286-0.0427-0.0409
M-score -3.61-0.69-0.33-2.01-2.07-2.26-2.44-2.39-2.70-2.65

Iconix Brand Group Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.16191.10490.87741.11851.28781.40811.25510.97080.87261.0746
GMI 1111111111
AQI 0.96971.10141.09960.98280.94730.85950.91180.97871.07071.0948
SGI 1.0361.01041.00530.95671.01231.05841.13261.22271.19781.1419
DEPI 1.04341.01021.01441.00870.94450.93970.88380.84570.88510.9328
SGAI 0.91090.9210.97381.02591.03321.02691.04311.03561.05341.045
LVGI 1.02770.79890.78581.24131.47351.99662.11051.34981.13660.9904
TATA -0.0297-0.0388-0.0494-0.0427-0.0352-0.0259-0.0276-0.0371-0.0295-0.0263
M-score -2.44-2.43-2.70-2.70-2.56-2.57-2.68-2.63-2.60-2.38
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