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Iconix Brand Group Inc (NAS:ICON)
Beneish M-Score
-2.24 (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 -2.24 suggests that the company is not a manipulator.

ICON' s 10-Year Beneish M-Score Range
Min: -4.41   Max: 7.82
Current: -2.24

-4.41
7.82

During the past 13 years, the highest Beneish M-Score of Iconix Brand Group Inc was 7.82. The lowest was -4.41. And the median was -2.33.


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 * 1.2272+0.528 * 1+0.404 * 1.0369+0.892 * 1.0661+0.115 * 1.1148
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0996+4.679 * -0.0093-0.327 * 0.9783
=-2.24

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $118.8 Mil.
Revenue was 112.412 + 113.75 + 118.943 + 116.138 = $461.2 Mil.
Gross Profit was 112.412 + 113.75 + 118.943 + 116.138 = $461.2 Mil.
Total Current Assets was $385.3 Mil.
Total Assets was $2,873.4 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 $205.4 Mil.
Total Current Liabilities was $137.1 Mil.
Long-Term Debt was $1,333.0 Mil.
Net Income was 23.87 + 33.779 + 35.319 + 59.768 = $152.7 Mil.
Non Operating Income was 4.149 + 4.084 + 5.675 + 3.122 = $17.0 Mil.
Cash Flow from Operations was 38.075 + 40.215 + 30.491 + 53.74 = $162.5 Mil.
Accounts Receivable was $90.8 Mil.
Revenue was 105.264 + 107.175 + 115.125 + 105.062 = $432.6 Mil.
Gross Profit was 105.264 + 107.175 + 115.125 + 105.062 = $432.6 Mil.
Total Current Assets was $471.0 Mil.
Total Assets was $2,864.2 Mil.
Property, Plant and Equipment(Net PPE) was $8.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General & Admin. Expense(SGA) was $175.2 Mil.
Total Current Liabilities was $131.8 Mil.
Long-Term Debt was $1,366.1 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)
=(118.774 / 461.243) / (90.777 / 432.626)
=0.25750852 / 0.20982789
=1.2272

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)
=(113.75 / 432.626) / (112.412 / 461.243)
=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 - (385.268 + 7.758) / 2873.391) / (1 - (471.008 + 8.837) / 2864.158)
=0.86321875 / 0.8324656
=1.0369

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
=461.243 / 432.626
=1.0661

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))
=(10.13 / (10.13 + 8.837)) / (7.135 / (7.135 + 7.758))
=0.53408552 / 0.47908413
=1.1148

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)
=(205.41 / 461.243) / (175.215 / 432.626)
=0.44534009 / 0.4050034
=1.0996

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)
=((1332.954 + 137.128) / 2873.391) / ((1366.069 + 131.822) / 2864.158)
=0.5116192 / 0.52297778
=0.9783

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
=(152.736 - 17.03 - 162.521) / 2873.391
=-0.0093

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 -2.24 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 4.78991.45951.03161.16721.2440.72941.09361.11850.87091.2272
GMI 0.219111111111
AQI 1.37450.95681.0850.97320.93161.04540.98210.98280.98131.0369
SGI 0.22952.67591.98281.35471.07061.43311.11210.95671.22271.0661
DEPI 1.21270.98720.79011.23371.28691.12891.07731.00870.84571.1148
SGAI 1.87170.66040.911.23131.00421.21810.91511.02591.03561.0996
LVGI 0.70340.49072.14490.85560.83720.85310.93881.24131.35150.9783
TATA 0.0240.0047-0.0194-0.0185-0.0261-0.0304-0.0286-0.0427-0.0305-0.0093
M-score 0.14-0.33-2.01-2.07-2.26-2.44-2.39-2.70-2.69-2.24

Iconix Brand Group Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.87741.11851.28781.40811.25510.87090.87261.07461.0561.2272
GMI 1111111111
AQI 1.09960.98280.94730.85950.91180.98131.07071.09481.0411.0369
SGI 1.00530.95671.01231.05841.13261.22271.19781.14191.10091.0661
DEPI 1.01441.00870.94450.93970.88380.84570.88510.93281.01431.1148
SGAI 0.97381.02591.03321.02691.04311.03561.05341.0451.02641.0996
LVGI 0.78581.24131.47351.99662.11051.35151.13660.99040.97240.9783
TATA -0.0494-0.0427-0.0365-0.0272-0.0328-0.0305-0.0214-0.0183-0.0105-0.0093
M-score -2.70-2.70-2.56-2.57-2.70-2.69-2.56-2.34-2.36-2.24
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