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Tiffany & Co (NYSE:TIF)
Beneish M-Score
-2.69 (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.

Tiffany & Co has a M-score of -2.69 suggests that the company is not a manipulator.

TIF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12   Max: -1.69
Current: -2.69

-3.12
-1.69

During the past 13 years, the highest Beneish M-Score of Tiffany & Co was -1.69. The lowest was -3.12. And the median was -2.42.


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 Tiffany & Co 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 * 1.1981+0.528 * 0.9794+0.404 * 0.8867+0.892 * 0.9604+0.115 * 0.9922
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0901+4.679 * -0.0585-0.327 * 1.0324
=-2.69

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $222 Mil.
Revenue was 891.3 + 1213.7 + 938.2 + 990.5 = $4,034 Mil.
Gross Profit was 545.6 + 764.8 + 564.5 + 593 = $2,468 Mil.
Total Current Assets was $3,522 Mil.
Total Assets was $5,148 Mil.
Property, Plant and Equipment(Net PPE) was $946 Mil.
Depreciation, Depletion and Amortization(DDA) was $206 Mil.
Selling, General & Admin. Expense(SGA) was $1,743 Mil.
Total Current Liabilities was $718 Mil.
Long-Term Debt was $790 Mil.
Net Income was 87.5 + 163.2 + 91 + 104.9 = $447 Mil.
Non Operating Income was 0 + -1.2 + 0 + 0 = $-1 Mil.
Cash Flow from Operations was 79.1 + 386.1 + 117.6 + 166.3 = $749 Mil.
Accounts Receivable was $193 Mil.
Revenue was 962.4 + 1285.2 + 959.6 + 992.9 = $4,200 Mil.
Gross Profit was 569 + 781.6 + 570.9 + 595.2 = $2,517 Mil.
Total Current Assets was $3,479 Mil.
Total Assets was $5,141 Mil.
Property, Plant and Equipment(Net PPE) was $897 Mil.
Depreciation, Depletion and Amortization(DDA) was $193 Mil.
Selling, General & Admin. Expense(SGA) was $1,665 Mil.
Total Current Liabilities was $585 Mil.
Long-Term Debt was $874 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)
=(221.5 / 4033.7) / (192.5 / 4200.1)
=0.05491236 / 0.04583224
=1.1981

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)
=(764.8 / 4200.1) / (545.6 / 4033.7)
=0.59920002 / 0.61182041
=0.9794

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 - (3522.2 + 946) / 5148.2) / (1 - (3478.5 + 897) / 5141.4)
=0.132085 / 0.14896721
=0.8867

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
=4033.7 / 4200.1
=0.9604

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))
=(193.2 / (193.2 + 897)) / (205.7 / (205.7 + 946))
=0.17721519 / 0.17860554
=0.9922

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)
=(1743.2 / 4033.7) / (1665.1 / 4200.1)
=0.43215906 / 0.39644294
=1.0901

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)
=((790.2 + 717.8) / 5148.2) / ((873.6 + 585.1) / 5141.4)
=0.29291791 / 0.2837165
=1.0324

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
=(446.6 - -1.2 - 749.1) / 5148.2
=-0.0585

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.

Tiffany & Co has a M-score of -2.69 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.

Tiffany & Co Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 1.05251.05560.87111.01861.02910.83830.90751.02140.98061.0947
GMI 1.00581.00440.96421.01880.95611.00021.03570.9820.97250.9837
AQI 1.04171.38170.9151.01761.00681.16991.18120.98691.05920.8964
SGI 1.10571.10970.97320.94741.13861.18071.04151.06241.05430.9659
DEPI 0.9810.8150.90680.91530.93021.13740.95950.95510.98240.9979
SGAI 0.99921.02420.99990.98090.98930.99540.97570.99891.00331.0891
LVGI 1.05981.02471.07050.96940.89090.97941.04211.04370.9761.0017
TATA 0.0018-0.0330.028-0.12070.01670.05370.01780.0028-0.0077-0.0679
M-score -2.33-2.36-2.58-3.05-2.24-2.12-2.37-2.43-2.47-2.81

Tiffany & Co Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 1.02140.99931.09140.99520.98060.97690.95131.18881.09471.1981
GMI 0.9820.97040.96570.96610.97250.97640.98620.99260.98370.9794
AQI 0.98690.92440.88830.85831.05921.11661.01491.08090.89640.8867
SGI 1.06241.07161.0781.07411.05431.01260.9960.97970.96590.9604
DEPI 0.95520.95310.94940.96990.98211.01911.0220.99850.99810.9922
SGAI 0.99890.98280.98951.0031.00331.0451.06261.05981.0891.0901
LVGI 1.04370.99291.01171.06320.9760.98391.0050.95621.00171.0324
TATA 0.00280.00290.01470.0341-0.0014-0.0248-0.0457-0.0717-0.0679-0.0585
M-score -2.43-2.45-2.33-2.36-2.44-2.57-2.75-2.63-2.81-2.69
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