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Tiffany & Co (NYSE:TIF)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

TIF' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -1.72
Current: -2.74

-3.12
-1.72

During the past 13 years, the highest Beneish M-Score of Tiffany & Co was -1.72. 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 * 0.9513+0.528 * 0.9862+0.404 * 1.0149+0.892 * 0.996+0.115 * 1.0223
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0626+4.679 * -0.0422-0.327 * 1.005
=-2.74

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

This Year (Jul15) TTM:Last Year (Jul14) TTM:
Accounts Receivable was $180 Mil.
Revenue was 990.5 + 962.4 + 1285.262 + 959.589 = $4,198 Mil.
Gross Profit was 593 + 569 + 781.615 + 570.871 = $2,514 Mil.
Total Current Assets was $3,614 Mil.
Total Assets was $5,181 Mil.
Property, Plant and Equipment(Net PPE) was $898 Mil.
Depreciation, Depletion and Amortization(DDA) was $195 Mil.
Selling, General & Admin. Expense(SGA) was $1,699 Mil.
Total Current Liabilities was $619 Mil.
Long-Term Debt was $879 Mil.
Net Income was 104.9 + 104.9 + 196.182 + 38.268 = $444 Mil.
Non Operating Income was 0 + -18.6 + 2.79 + -93.779 = $-110 Mil.
Cash Flow from Operations was 166.3 + 143.6 + 437.338 + 24.979 = $772 Mil.
Accounts Receivable was $190 Mil.
Revenue was 992.9 + 1012.1 + 1298.284 + 911.478 = $4,215 Mil.
Gross Profit was 595.2 + 589.5 + 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.



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)
=(180.3 / 4197.751) / (190.3 / 4214.762)
=0.04295157 / 0.04515083
=0.9513

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)
=(569 / 4214.762) / (593 / 4197.751)
=0.59073086 / 0.5990079
=0.9862

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 - (3613.7 + 898.4) / 5180.5) / (1 - (3451 + 857.3) / 4935.8)
=0.1290223 / 0.12713238
=1.0149

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
=4197.751 / 4214.762
=0.996

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))
=(191.506 / (191.506 + 857.3)) / (195.358 / (195.358 + 898.4))
=0.1825943 / 0.17861172
=1.0223

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)
=(1698.571 / 4197.751) / (1604.994 / 4214.762)
=0.40463834 / 0.380803
=1.0626

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)
=((878.6 + 619.4) / 5180.5) / ((750.1 + 670.1) / 4935.8)
=0.28916128 / 0.28773451
=1.005

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
=(444.25 - -109.589 - 772.217) / 5180.5
=-0.0422

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 -2.74 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 1.01581.05111.02070.87451.01471.02910.83830.90751.02140.9804
GMI 0.9870.98311.01990.97581.02340.95611.00021.03570.9820.9725
AQI 1.45271.04171.38170.9151.01761.00681.16991.18120.98690.9185
SGI 1.0491.10721.14760.96940.95121.13861.18071.04151.06241.0543
DEPI 0.93970.99990.76850.94270.91610.93021.13740.95950.95510.9824
SGAI 0.93710.99211.03880.98790.99280.98930.99540.97570.99891.0033
LVGI 0.95241.05981.02471.07050.96940.89090.97941.04211.04370.9761
TATA -0.00590.0083-0.0610.028-0.12070.01670.05370.02010.0084-0.0077
M-score -2.25-2.31-2.49-2.57-3.05-2.24-2.12-2.36-2.40-2.53

Tiffany & Co Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
DSRI 0.95660.89630.97481.02140.99931.09140.99510.98050.97690.9513
GMI 1.03581.01970.99630.9820.97040.96570.96610.97250.97640.9862
AQI 1.19831.14061.09530.98690.92440.88830.85830.91850.97951.0149
SGI 1.04581.05251.05951.06241.07161.0781.07411.05431.01260.996
DEPI 0.94250.95130.97410.95510.9530.94930.96980.98241.01941.0223
SGAI 0.97250.99320.98720.99890.98280.98951.0031.00331.0451.0626
LVGI 1.00670.95410.94841.04370.99291.01171.06310.97610.98811.005
TATA -0.0165-0.0248-0.02490.00280.00290.01470.0341-0.0014-0.0212-0.0422
M-score -2.46-2.57-2.51-2.43-2.45-2.33-2.36-2.50-2.61-2.74
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