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Tiffany & Co (NYSE:TIF)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

TIF' s 10-Year Beneish M-Score Range
Min: -3.24   Max: -1.62
Current: -2.51

-3.24
-1.62

During the past 13 years, the highest Beneish M-Score of Tiffany & Co was -1.62. The lowest was -3.24. And the median was -2.43.


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 * 0.9992+0.528 * 0.9704+0.404 * 0.9244+0.892 * 1.0716+0.115 * 0.9532
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9828+4.679 * -0.0098-0.327 * 0.9929
=-2.51

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $195 Mil.
Revenue was 1012.132 + 1298.284 + 911.478 + 925.884 = $4,148 Mil.
Gross Profit was 589.526 + 785.609 + 519.481 + 532.129 = $2,427 Mil.
Total Current Assets was $3,333 Mil.
Total Assets was $4,826 Mil.
Property, Plant and Equipment(Net PPE) was $848 Mil.
Depreciation, Depletion and Amortization(DDA) was $187 Mil.
Selling, General & Admin. Expense(SGA) was $1,574 Mil.
Total Current Liabilities was $641 Mil.
Long-Term Debt was $751 Mil.
Net Income was 125.609 + -103.599 + 94.61 + 106.781 = $223 Mil.
Non Operating Income was 0 + 69.465 + -27.844 + 0 = $42 Mil.
Cash Flow from Operations was 76.616 + -50.48 + 85.052 + 117.797 = $229 Mil.
Accounts Receivable was $182 Mil.
Revenue was 895.484 + 1235.769 + 852.741 + 886.569 = $3,871 Mil.
Gross Profit was 503.224 + 730.815 + 464.289 + 499.162 = $2,197 Mil.
Total Current Assets was $3,184 Mil.
Total Assets was $4,666 Mil.
Property, Plant and Equipment(Net PPE) was $808 Mil.
Depreciation, Depletion and Amortization(DDA) was $168 Mil.
Selling, General & Admin. Expense(SGA) was $1,494 Mil.
Total Current Liabilities was $598 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)
=(194.571 / 4147.778) / (181.715 / 3870.563)
=0.04690969 / 0.04694795
=0.9992

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)
=(785.609 / 3870.563) / (589.526 / 4147.778)
=0.56774428 / 0.58507109
=0.9704

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 - (3333.306 + 848.432) / 4825.514) / (1 - (3184.483 + 807.875) / 4665.756)
=0.13341087 / 0.14432774
=0.9244

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
=4147.778 / 3870.563
=1.0716

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))
=(167.965 / (167.965 + 807.875)) / (186.976 / (186.976 + 848.432))
=0.1721235 / 0.18058195
=0.9532

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)
=(1573.57 / 4147.778) / (1494.1 / 3870.563)
=0.37937662 / 0.38601619
=0.9828

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)
=((750.826 + 640.718) / 4825.514) / ((757.191 + 597.884) / 4665.756)
=0.28837218 / 0.29042989
=0.9929

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
=(223.401 - 41.621 - 228.985) / 4825.514
=-0.0098

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 -2.51 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 0.91781.01581.05111.02070.87111.01861.02910.83830.90751.0214
GMI 1.03680.9870.98311.01990.98021.01880.95611.00021.03570.982
AQI 0.79721.45271.04171.38170.9151.01761.00681.16991.18120.9869
SGI 1.10241.0491.10721.14760.97320.94741.13861.18071.04151.0624
DEPI 0.87080.93970.99990.76850.94350.91530.93021.13740.95950.9551
SGAI 1.05890.93710.99211.03880.99990.98090.98930.99540.97570.9989
LVGI 0.90740.95241.05981.02471.07050.96940.89090.97941.04211.0437
TATA -0.0098-0.00590.0083-0.0610.028-0.12070.01670.05370.01780.0084
M-score -2.57-2.25-2.31-2.49-2.57-3.05-2.24-2.12-2.37-2.40

Tiffany & Co Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
DSRI 0.83830.89620.86650.89610.90750.95660.89630.97481.02140.9992
GMI 1.00021.00571.02041.03161.03571.03581.01970.99630.9820.9704
AQI 1.16991.18581.161.23671.18121.19831.14061.09530.98690.9244
SGI 1.18071.1521.08731.05321.04151.04581.05251.05951.06241.0716
DEPI 1.13741.10921.00810.94090.95950.94250.95130.97410.95510.9532
SGAI 0.99541.00040.96240.98490.97570.97250.99320.98720.99890.9828
LVGI 0.97941.10011.11021.11071.04211.00670.95410.94841.04370.9929
TATA 0.05370.07140.07580.02720.0178-0.0082-0.0166-0.0052-0.0031-0.0098
M-score -2.12-2.05-2.12-2.33-2.37-2.42-2.53-2.42-2.45-2.51
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