MHK has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
Mohawk Industries, Inc. has a M-score of -2.15 signals that the company is a manipulator.
During the past 13 years, the highest Beneish M-Score of Mohawk Industries, Inc. was -0.63. The lowest was -4.20. And the median was -2.53.
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 Mohawk Industries, 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 * 1.232||+||0.528 * 0.9849||+||0.404 * 0.9747||+||0.892 * 1.2697||+||0.115 * 1.3846|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9744||+||4.679 * -0.0197||-||0.327 * 1.1886|
|This Year (Dec13) TTM:||Last Year (Dec12) TTM:|
|Accounts Receivable was $1,063 Mil.|
Revenue was 1924.104 + 1961.536 + 1976.299 + 1486.815 = $7,349 Mil.
Gross Profit was 512.797 + 516.89 + 514.056 + 377.066 = $1,921 Mil.
Total Current Assets was $3,086 Mil.
Total Assets was $8,494 Mil.
Property, Plant and Equipment(Net PPE) was $2,702 Mil.
Depreciation, Depletion and Amortization(DDA) was $309 Mil.
Selling, General & Admin. Expense(SGA) was $1,374 Mil.
Total Current Liabilities was $1,321 Mil.
Long-Term Debt was $2,133 Mil.
Net Income was 94.651 + 119.068 + 84.572 + 50.495 = $349 Mil.
Non Operating Income was -2.656 + -1.168 + 1.097 + -6.387 = $-9 Mil.
Cash Flow from Operations was 198.19 + 213.059 + 152.858 + -38.944 = $525 Mil.
|Accounts Receivable was $679 Mil.
Revenue was 1435.659 + 1473.493 + 1469.793 + 1409.035 = $5,788 Mil.
Gross Profit was 369.331 + 372.837 + 388.464 + 359.426 = $1,490 Mil.
Total Current Assets was $2,550 Mil.
Total Assets was $6,304 Mil.
Property, Plant and Equipment(Net PPE) was $1,693 Mil.
Depreciation, Depletion and Amortization(DDA) was $280 Mil.
Selling, General & Admin. Expense(SGA) was $1,111 Mil.
Total Current Liabilities was $829 Mil.
Long-Term Debt was $1,328 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(1062.875 / 7348.754)||/||(679.473 / 5787.98)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(516.89 / 5787.98)||/||(512.797 / 7348.754)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (3085.718 + 2701.743) / 8494.177)||/||(1 - (2550.046 + 1692.852) / 6303.684)|
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.
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))|
|=||(280.293 / (280.293 + 1692.852))||/||(308.871 / (308.871 + 2701.743))|
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)|
|=||(1373.878 / 7348.754)||/||(1110.55 / 5787.98)|
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)|
|=||((2132.79 + 1320.811) / 8494.177)||/||((1327.729 + 828.649) / 6303.684)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(348.786 - -9.114||-||525.163)||/||8494.177|
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.
Mohawk Industries, Inc. has a M-score of -2.15 signals that the company is likely to be a manipulator.
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
Mohawk Industries, Inc. Annual Data
Mohawk Industries, Inc. Quarterly Data