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Iconix Brand Group Inc (NAS:ICON)
Beneish M-Score
-2.41 (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 -2.41 suggests that the company is not a manipulator.

ICON' s 10-Year Beneish M-Score Range
Min: -4.72   Max: 7.82
Current: -2.41

-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 * 1.056+0.528 * 1+0.404 * 1.041+0.892 * 1.1009+0.115 * 1.0143
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0264+4.679 * -0.0209-0.327 * 0.9724
=-2.41

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $131.8 Mil.
Revenue was 113.75 + 118.943 + 116.138 + 105.264 = $454.1 Mil.
Gross Profit was 113.75 + 118.943 + 116.138 + 105.264 = $454.1 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 $189.8 Mil.
Total Current Liabilities was $142.6 Mil.
Long-Term Debt was $1,340.7 Mil.
Net Income was 33.779 + 35.319 + 59.768 + 26.146 = $155.0 Mil.
Non Operating Income was 4.084 + 5.675 + 3.122 + 4.541 = $17.4 Mil.
Cash Flow from Operations was 40.215 + 30.491 + 53.74 + 72.571 = $197.0 Mil.
Accounts Receivable was $113.4 Mil.
Revenue was 107.175 + 115.125 + 105.062 + 85.131 = $412.5 Mil.
Gross Profit was 107.175 + 115.125 + 105.062 + 85.131 = $412.5 Mil.
Total Current Assets was $466.4 Mil.
Total Assets was $2,851.7 Mil.
Property, Plant and Equipment(Net PPE) was $9.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.8 Mil.
Selling, General & Admin. Expense(SGA) was $167.9 Mil.
Total Current Liabilities was $153.0 Mil.
Long-Term Debt was $1,374.2 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)
=(131.802 / 454.095) / (113.377 / 412.493)
=0.29025204 / 0.274858
=1.056

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)
=(118.943 / 412.493) / (113.75 / 454.095)
=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 - (369.92 + 7.812) / 2848.233) / (1 - (466.41 + 9.244) / 2851.656)
=0.86738023 / 0.83320078
=1.041

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
=454.095 / 412.493
=1.1009

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))
=(9.762 / (9.762 + 9.244)) / (8.014 / (8.014 + 7.812))
=0.51362728 / 0.5063819
=1.0143

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)
=(189.758 / 454.095) / (167.944 / 412.493)
=0.41788172 / 0.40714388
=1.0264

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)
=((1340.66 + 142.608) / 2848.233) / ((1374.248 + 152.971) / 2851.656)
=0.52076779 / 0.53555513
=0.9724

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
=(155.012 - 17.422 - 197.017) / 2848.233
=-0.0209

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 -2.41 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

Jan04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.47814.78991.45951.03161.16721.2440.72941.09361.11850.9708
GMI 1.17880.21911111111
AQI 1.37241.37450.95681.0850.97320.93161.04540.98210.98280.9787
SGI 0.8380.22952.67591.98281.35471.07061.43311.11210.95671.2227
DEPI 0.66861.21270.98720.79011.23371.28691.12891.07731.00870.8457
SGAI 1.01811.87170.66040.911.23131.00421.21810.91511.02591.0356
LVGI 1.01990.70340.49072.14490.85560.83720.85310.93881.24131.3498
TATA -0.11840.0240.0047-0.0194-0.0185-0.0261-0.0304-0.0286-0.0427-0.0409
M-score -3.460.14-0.33-2.01-2.07-2.26-2.44-2.39-2.70-2.65

Iconix Brand Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.10490.87741.11851.28781.40811.25510.97080.87261.07461.056
GMI 1111111111
AQI 1.10141.09960.98280.94730.85950.91180.97871.07071.09481.041
SGI 1.01041.00530.95671.01231.05841.13261.22271.19781.14191.1009
DEPI 1.01021.01441.00870.94450.93970.88380.84570.88510.93281.0143
SGAI 0.9210.97381.02591.03321.02691.04311.03561.05341.0451.0264
LVGI 0.79890.78581.24131.47351.99662.11051.34981.13660.99040.9724
TATA -0.0388-0.0494-0.0427-0.0365-0.0272-0.0328-0.0409-0.0318-0.0287-0.0209
M-score -2.43-2.70-2.70-2.56-2.57-2.70-2.65-2.61-2.39-2.41
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