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Iconix Brand Group Inc (NAS:ICON)
Beneish M-Score
-3.45 (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 -3.45 suggests that the company is not a manipulator.

ICON' s Beneish M-Score Range Over the Past 10 Years
Min: -4.41   Max: 7.8
Current: -3.45

-4.41
7.8

During the past 13 years, the highest Beneish M-Score of Iconix Brand Group Inc was 7.80. The lowest was -4.41. And the median was -2.40.


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 * 0.9538+0.528 * 1+0.404 * 0.9781+0.892 * 0.9686+0.115 * 1.2404
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1466+4.679 * -0.1787-0.327 * 1.1627
=-3.45

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $103.8 Mil.
Revenue was 100.242 + 88.935 + 96.221 + 93.797 = $379.2 Mil.
Gross Profit was 100.242 + 88.935 + 96.221 + 93.797 = $379.2 Mil.
Total Current Assets was $369.8 Mil.
Total Assets was $2,522.0 Mil.
Property, Plant and Equipment(Net PPE) was $7.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.7 Mil.
Selling, General & Admin. Expense(SGA) was $209.7 Mil.
Total Current Liabilities was $145.9 Mil.
Long-Term Debt was $1,403.3 Mil.
Net Income was -261.432 + -6.34 + 14.786 + 63.685 = $-189.3 Mil.
Non Operating Income was 6.526 + 1.057 + 2.402 + 61.067 = $71.1 Mil.
Cash Flow from Operations was 49.794 + 40.29 + 67.091 + 33.066 = $190.2 Mil.
Accounts Receivable was $112.3 Mil.
Revenue was 53.466 + 110.292 + 112.109 + 115.623 = $391.5 Mil.
Gross Profit was 53.466 + 110.292 + 112.109 + 115.623 = $391.5 Mil.
Total Current Assets was $354.4 Mil.
Total Assets was $2,773.0 Mil.
Property, Plant and Equipment(Net PPE) was $7.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.1 Mil.
Selling, General & Admin. Expense(SGA) was $188.8 Mil.
Total Current Liabilities was $132.0 Mil.
Long-Term Debt was $1,333.0 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)
=(103.792 / 379.195) / (112.347 / 391.49)
=0.27371669 / 0.28697285
=0.9538

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)
=(88.935 / 391.49) / (100.242 / 379.195)
=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 - (369.804 + 7.499) / 2521.998) / (1 - (354.362 + 7.758) / 2773.042)
=0.8503952 / 0.86941417
=0.9781

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
=379.195 / 391.49
=0.9686

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))
=(7.135 / (7.135 + 7.758)) / (4.719 / (4.719 + 7.499))
=0.47908413 / 0.38623343
=1.2404

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)
=(209.664 / 379.195) / (188.786 / 391.49)
=0.55291868 / 0.48222432
=1.1466

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)
=((1403.285 + 145.917) / 2521.998) / ((1332.954 + 132.049) / 2773.042)
=0.61427567 / 0.52830177
=1.1627

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
=(-189.301 - 71.052 - 190.241) / 2521.998
=-0.1787

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 -3.45 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.25510.96460.96521.2081.19511.23471.12631.05210.9990.9538
GMI 1111111111
AQI 0.91180.98131.07071.09481.0411.04441.0221.00191.01030.9781
SGI 1.13261.10391.08291.01580.97271.00230.92150.88860.82850.9686
DEPI 0.88380.84570.88510.93281.01431.11481.24081.20651.23291.2404
SGAI 1.04241.13371.14951.15611.12341.08771.08591.14191.34121.1466
LVGI 2.11051.35151.13660.99040.97241.01020.99090.98660.98191.1627
TATA -0.0336-0.0391-0.0431-0.0418-0.034-0.0384-0.0341-0.0495-0.062-0.1787
M-score -2.70-2.77-2.69-2.46-2.48-2.43-2.57-2.76-2.95-3.45
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