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Iconix Brand Group Inc (NAS:ICON)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

ICON' s Beneish M-Score Range Over the Past 10 Years
Min: -4.72   Max: 7.82
Current: -2.83

-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 -2.37.


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 * 0.9588+0.528 * 1+0.404 * 1.0103+0.892 * 0.8632+0.115 * 1.2329
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2955+4.679 * -0.0371-0.327 * 0.9819
=-2.83

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $109.1 Mil.
Revenue was 88.935 + 96.221 + 93.797 + 101.973 = $380.9 Mil.
Gross Profit was 88.935 + 96.221 + 93.797 + 101.973 = $380.9 Mil.
Total Current Assets was $369.0 Mil.
Total Assets was $3,043.7 Mil.
Property, Plant and Equipment(Net PPE) was $7.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.2 Mil.
Selling, General & Admin. Expense(SGA) was $205.3 Mil.
Total Current Liabilities was $436.3 Mil.
Long-Term Debt was $1,120.1 Mil.
Net Income was -6.34 + 14.786 + 63.685 + 24.279 = $96.4 Mil.
Non Operating Income was 1.057 + 2.402 + 61.067 + -33.744 = $30.8 Mil.
Cash Flow from Operations was 40.29 + 67.091 + 33.066 + 38.076 = $178.5 Mil.
Accounts Receivable was $131.8 Mil.
Revenue was 110.292 + 112.109 + 115.623 + 103.264 = $441.3 Mil.
Gross Profit was 110.292 + 112.109 + 115.623 + 103.264 = $441.3 Mil.
Total Current Assets was $369.9 Mil.
Total Assets was $2,848.2 Mil.
Property, Plant and Equipment(Net PPE) was $7.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.0 Mil.
Selling, General & Admin. Expense(SGA) was $183.6 Mil.
Total Current Liabilities was $142.6 Mil.
Long-Term Debt was $1,340.7 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)
=(109.09 / 380.926) / (131.802 / 441.288)
=0.28638108 / 0.29867569
=0.9588

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)
=(96.221 / 441.288) / (88.935 / 380.926)
=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 - (369.021 + 7.501) / 3043.701) / (1 - (369.92 + 7.812) / 2848.233)
=0.87629468 / 0.86738023
=1.0103

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
=380.926 / 441.288
=0.8632

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))
=(8.014 / (8.014 + 7.812)) / (5.228 / (5.228 + 7.501))
=0.5063819 / 0.41071569
=1.2329

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)
=(205.28 / 380.926) / (183.57 / 441.288)
=0.53889732 / 0.41598684
=1.2955

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)
=((1120.098 + 436.299) / 3043.701) / ((1340.66 + 142.608) / 2848.233)
=0.51135016 / 0.52076779
=0.9819

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
=(96.41 - 30.782 - 178.523) / 3043.701
=-0.0371

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 -2.83 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 4.78991.45951.03161.16721.2440.72941.09361.11850.87491.2406
GMI 0.219111111111
AQI 1.37450.95681.0850.97320.93161.04540.98210.98280.98131.0389
SGI 0.22952.67591.98281.35471.07061.43311.11210.95671.21711.0218
DEPI 1.21270.98720.79011.23371.28691.12891.07731.00870.84571.1148
SGAI 1.87170.66040.911.23131.00421.21810.91511.02591.02861.0744
LVGI 0.70340.49072.14490.85560.83720.85310.93881.24131.35150.9805
TATA 0.0240.0047-0.0194-0.0185-0.0261-0.0304-0.0286-0.0427-0.0305-0.0107
M-score 0.14-0.33-2.01-2.07-2.26-2.44-2.39-2.70-2.69-2.27

Iconix Brand Group Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.40811.25510.87490.87761.09761.08671.24061.09511.01830.9588
GMI 1111111111
AQI 0.85950.91180.98131.07071.09481.0411.03891.0221.00191.0103
SGI 1.05841.13261.21711.1911.1181.06981.02180.94780.91810.8632
DEPI 0.93970.88380.84570.88510.93281.01431.11481.24081.20651.2329
SGAI 1.02691.04311.02861.04541.05071.02171.07441.06341.11311.2955
LVGI 1.99662.11051.35151.13660.99040.97240.98050.99090.98660.9819
TATA -0.0272-0.0328-0.0305-0.0344-0.0331-0.0253-0.0107-0.009-0.0248-0.0371
M-score -2.57-2.70-2.69-2.62-2.41-2.43-2.27-2.45-2.64-2.83
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