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Iconix Brand Group Inc (NAS:ICON)
Beneish M-Score
-3.56 (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 -3.56 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: -3.56

-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 * 0.7731+0.528 * 0.9946+0.404 * 0.9488+0.892 * 1.0225+0.115 * 1.1439
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1904+4.679 * -0.1717-0.327 * 1.1559
=-3.56

* 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 + 96.221 = $380.0 Mil.
Gross Profit was 94.632 + 100.242 + 88.935 + 96.221 = $380.0 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 $219.9 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 + 14.786 = $-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 + 68.022 = $190.2 Mil.
Accounts Receivable was $122.3 Mil.
Revenue was 95.814 + 53.466 + 110.292 + 112.109 = $371.7 Mil.
Gross Profit was 93.797 + 53.466 + 110.292 + 112.109 = $369.7 Mil.
Total Current Assets was $323.2 Mil.
Total Assets was $3,016.0 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 $180.7 Mil.
Total Current Liabilities was $143.5 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 / 380.03) / (122.273 / 371.681)
=0.25431413 / 0.32897296
=0.7731

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)
=(100.242 / 371.681) / (94.632 / 380.03)
=0.9945733 / 1
=0.9946

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 - (323.191 + 8.219) / 3016.014)
=0.8445294 / 0.89011656
=0.9488

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
=380.03 / 371.681
=1.0225

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)
=(219.944 / 380.03) / (180.712 / 371.681)
=0.57875431 / 0.48620188
=1.1904

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 + 143.505) / 3016.014)
=0.60118887 / 0.52012159
=1.1559

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
=(-234.37 - 10.185 - 190.157) / 2531.469
=-0.1717

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 -3.56 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 1.45951.03161.16721.2440.72941.09361.11850.87091.16081.1237
GMI 1111111111
AQI 0.95681.0850.97320.93161.04540.98210.98280.98131.04440.9781
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 0.49072.14490.85560.83720.85310.93881.24131.35151.01021.1627
TATA 0.0011-0.0149-0.0133-0.0261-0.0304-0.0286-0.0418-0.0408-0.0097-0.1787
M-score -0.35-1.99-2.07-2.23-2.44-2.39-2.69-2.74-2.31-3.44

Iconix Brand Group Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.96460.96521.2081.19511.23471.12021.04610.9930.94880.7731
GMI 111111.00551.00571.00611.00530.9946
AQI 0.98131.07071.09481.0411.04441.0221.00191.01030.97810.9488
SGI 1.10391.08291.01580.97271.00230.92660.89370.83350.97371.0225
DEPI 0.84570.88510.93281.01431.11481.24081.20651.23291.24041.1439
SGAI 1.13371.14951.15611.12341.08771.0711.12611.32321.13231.1904
LVGI 1.35151.13660.99040.97241.01020.99090.98660.98191.16271.1559
TATA -0.0391-0.0431-0.0418-0.034-0.0384-0.0331-0.0488-0.0613-0.1778-0.1717
M-score -2.77-2.69-2.46-2.48-2.43-2.56-2.75-2.94-3.44-3.56
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