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Tiffany & Co (NYSE:TIF)
Beneish M-Score
-2.39 (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 -2.39 suggests that the company is not a manipulator.

TIF' s 10-Year Beneish M-Score Range
Min: -3.13   Max: -1.76
Current: -2.39

-3.13
-1.76

During the past 13 years, the highest Beneish M-Score of Tiffany & Co was -1.76. The lowest was -3.13. And the median was -2.41.


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 * 1.0915+0.528 * 0.9657+0.404 * 0.8883+0.892 * 1.078+0.115 * 0.9493
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9894+4.679 * 0.0024-0.327 * 1.0117
=-2.39

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $190 Mil.
Revenue was 992.93 + 1012.132 + 1298.284 + 911.478 = $4,215 Mil.
Gross Profit was 595.163 + 589.526 + 785.609 + 519.481 = $2,490 Mil.
Total Current Assets was $3,451 Mil.
Total Assets was $4,936 Mil.
Property, Plant and Equipment(Net PPE) was $857 Mil.
Depreciation, Depletion and Amortization(DDA) was $192 Mil.
Selling, General & Admin. Expense(SGA) was $1,605 Mil.
Total Current Liabilities was $670 Mil.
Long-Term Debt was $750 Mil.
Net Income was 124.12 + 125.609 + -103.599 + 94.61 = $241 Mil.
Non Operating Income was 0 + 0 + 69.465 + -27.844 = $42 Mil.
Cash Flow from Operations was 76.18 + 76.616 + -50.48 + 85.052 = $187 Mil.
Accounts Receivable was $162 Mil.
Revenue was 925.884 + 895.484 + 1235.769 + 852.741 = $3,910 Mil.
Gross Profit was 532.129 + 503.224 + 730.815 + 464.289 = $2,230 Mil.
Total Current Assets was $3,240 Mil.
Total Assets was $4,732 Mil.
Property, Plant and Equipment(Net PPE) was $815 Mil.
Depreciation, Depletion and Amortization(DDA) was $171 Mil.
Selling, General & Admin. Expense(SGA) was $1,505 Mil.
Total Current Liabilities was $589 Mil.
Long-Term Debt was $757 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)
=(190.318 / 4214.824) / (161.746 / 3909.878)
=0.04515444 / 0.04136855
=1.0915

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)
=(589.526 / 3909.878) / (595.163 / 4214.824)
=0.57046716 / 0.59071957
=0.9657

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 - (3450.975 + 857.317) / 4935.825) / (1 - (3239.917 + 814.593) / 4731.718)
=0.12713842 / 0.14312096
=0.8883

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
=4214.824 / 3909.878
=1.078

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))
=(170.805 / (170.805 + 814.593)) / (191.52 / (191.52 + 857.317))
=0.17333605 / 0.18260225
=0.9493

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)
=(1604.969 / 4214.824) / (1504.761 / 3909.878)
=0.38079146 / 0.38486137
=0.9894

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)
=((750.07 + 670.098) / 4935.825) / ((756.807 + 588.874) / 4731.718)
=0.28772657 / 0.28439586
=1.0117

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
=(240.74 - 41.621 - 187.368) / 4935.825
=0.0024

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 -2.39 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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.91780.98081.0741.03450.87111.01861.02910.83830.90751.0214
GMI 1.03680.99591.00581.00440.96421.01880.95611.00021.03570.982
AQI 0.79721.45270.94871.55810.8911.01761.00681.16991.18120.9869
SGI 1.10241.08631.10571.10970.97320.94741.13861.18071.04151.0624
DEPI 0.87910.93971.00020.79930.90680.91530.93021.13740.95950.9551
SGAI 1.05890.94370.99921.02420.99990.98090.98930.99540.97570.9989
LVGI 0.90740.95241.05981.05231.04240.96940.89090.97941.04211.0437
TATA -0.0098-0.00590.0018-0.06990.028-0.12070.01670.05370.01780.0084
M-score -2.57-2.25-2.35-2.49-2.58-3.05-2.24-2.12-2.37-2.40

Tiffany & Co Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.89620.86650.89610.90750.95660.89630.97481.02140.99921.0915
GMI 1.00571.02041.03161.03571.03581.01970.99630.9820.97040.9657
AQI 1.18581.161.23671.18121.19831.14061.09530.98690.92440.8883
SGI 1.1521.08731.05321.04151.04581.05251.05951.06241.07161.078
DEPI 1.10921.00810.94090.95950.94250.95130.97410.95510.95320.9493
SGAI 1.00040.96240.98490.97570.97250.99320.98720.99890.98280.9894
LVGI 1.10011.11021.11071.04211.00670.95410.94841.04370.99291.0117
TATA 0.07140.07580.02720.0178-0.0082-0.0166-0.0052-0.0031-0.00980.0024
M-score -2.05-2.12-2.33-2.37-2.42-2.53-2.42-2.45-2.51-2.39
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