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Iconix Brand Group Inc (NAS:ICON)
Beneish M-Score
-3.60 (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 -3.60 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: -3.6

-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 -2.38.


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 * 0.8939+0.528 * 1+0.404 * 0.9501+0.892 * 0.8678+0.115 * 1.1439
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2726+4.679 * -0.1714-0.327 * 1.1572
=-3.60

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $96.6 Mil.
Revenue was 94.632 + 100.242 + 88.935 + 98.459 = $382.3 Mil.
Gross Profit was 94.632 + 100.242 + 88.935 + 98.459 = $382.3 Mil.
Total Current Assets was $386.2 Mil.
Total Assets was $2,531.5 Mil.
Property, Plant and Equipment(Net PPE) was $7.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.5 Mil.
Selling, General & Admin. Expense(SGA) was $222.4 Mil.
Total Current Liabilities was $139.8 Mil.
Long-Term Debt was $1,382.1 Mil.
Net Income was 18.616 + -261.432 + -6.34 + 14.768 = $-234.4 Mil.
Non Operating Income was 0.2 + 6.526 + 1.057 + 2.402 = $10.2 Mil.
Cash Flow from Operations was 32.051 + 49.794 + 40.29 + 67.091 = $189.2 Mil.
Accounts Receivable was $124.6 Mil.
Revenue was 95.387 + 112.412 + 113.75 + 118.943 = $440.5 Mil.
Gross Profit was 95.387 + 112.412 + 113.75 + 118.943 = $440.5 Mil.
Total Current Assets was $327.4 Mil.
Total Assets was $3,021.9 Mil.
Property, Plant and Equipment(Net PPE) was $8.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.3 Mil.
Selling, General & Admin. Expense(SGA) was $201.4 Mil.
Total Current Liabilities was $144.7 Mil.
Long-Term Debt was $1,425.2 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)
=(96.647 / 382.268) / (124.591 / 440.492)
=0.25282524 / 0.28284509
=0.8939

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)
=(440.492 / 440.492) / (382.268 / 382.268)
=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 - (386.221 + 7.348) / 2531.469) / (1 - (327.445 + 8.219) / 3021.902)
=0.8445294 / 0.88892294
=0.9501

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
=382.268 / 440.492
=0.8678

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))
=(6.282 / (6.282 + 8.219)) / (4.479 / (4.479 + 7.348))
=0.4332115 / 0.37870973
=1.1439

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)
=(222.375 / 382.268) / (201.363 / 440.492)
=0.58172539 / 0.45713203
=1.2726

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)
=((1382.122 + 139.769) / 2531.469) / ((1425.189 + 144.711) / 3021.902)
=0.60118887 / 0.51950725
=1.1572

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
=(-234.388 - 10.185 - 189.226) / 2531.469
=-0.1714

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 -3.60 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 1.45951.03161.16721.2440.72941.09361.11850.97081.04141.1237
GMI 1111111111
AQI 0.95681.0850.97320.93161.04540.98210.98280.97871.04710.9781
SGI 2.67591.98281.35471.07061.43311.11210.95671.22271.06610.8221
DEPI 0.98720.79011.01741.56051.12891.07731.00870.84571.11481.2404
SGAI 0.66040.911.23131.00421.21810.91511.02591.03561.09961.2416
LVGI 0.49072.14490.85560.83720.85310.93881.24131.34981.01151.1627
TATA 0.0011-0.0149-0.0133-0.0261-0.0304-0.0286-0.0418-0.0409-0.0097-0.1787
M-score -0.35-1.99-2.07-2.23-2.44-2.39-2.69-2.65-2.42-3.44

Iconix Brand Group Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.97080.87261.07461.0561.10091.06541.0180.9511.05230.8939
GMI 1111111111
AQI 0.97871.07071.09481.0411.03971.02061.00111.01030.98510.9501
SGI 1.22271.19781.14191.10091.06610.99280.93850.87030.83040.8678
DEPI 0.84570.88510.93281.01431.11481.24081.20651.23291.24041.1439
SGAI 1.03561.05341.0451.02641.09961.09881.18561.34261.26071.2726
LVGI 1.34981.13660.99040.97240.97950.98970.98550.98191.20071.1572
TATA -0.0409-0.0326-0.0278-0.0223-0.0093-0.0202-0.0374-0.05-0.179-0.1714
M-score -2.65-2.61-2.39-2.42-2.35-2.50-2.70-2.90-3.51-3.60
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