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Tiffany & Co (NYSE:TIF)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

TIF' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -1.72
Current: -2.45

-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 -2.41.


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 * 1.0214+0.528 * 0.982+0.404 * 0.9869+0.892 * 1.0624+0.115 * 0.9551
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9989+4.679 * -0.0031-0.327 * 1.0437
=-2.45

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $189 Mil.
Revenue was 1298.284 + 911.478 + 925.884 + 895.484 = $4,031 Mil.
Gross Profit was 785.609 + 519.481 + 532.129 + 503.224 = $2,340 Mil.
Total Current Assets was $3,228 Mil.
Total Assets was $4,752 Mil.
Property, Plant and Equipment(Net PPE) was $855 Mil.
Depreciation, Depletion and Amortization(DDA) was $181 Mil.
Selling, General & Admin. Expense(SGA) was $1,556 Mil.
Total Current Liabilities was $697 Mil.
Long-Term Debt was $751 Mil.
Net Income was -103.599 + 94.61 + 106.781 + 83.577 = $181 Mil.
Non Operating Income was 69.465 + -27.844 + 0 + 0 = $42 Mil.
Cash Flow from Operations was -50.48 + 85.052 + 117.797 + 2.283 = $155 Mil.
Accounts Receivable was $174 Mil.
Revenue was 1235.769 + 852.741 + 886.569 + 819.17 = $3,794 Mil.
Gross Profit was 730.815 + 464.289 + 499.162 + 469.018 = $2,163 Mil.
Total Current Assets was $3,152 Mil.
Total Assets was $4,631 Mil.
Property, Plant and Equipment(Net PPE) was $819 Mil.
Depreciation, Depletion and Amortization(DDA) was $164 Mil.
Selling, General & Admin. Expense(SGA) was $1,466 Mil.
Total Current Liabilities was $587 Mil.
Long-Term Debt was $765 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)
=(188.814 / 4031.13) / (173.998 / 3794.249)
=0.04683898 / 0.04585835
=1.0214

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)
=(519.481 / 3794.249) / (785.609 / 4031.13)
=0.57014814 / 0.58059229
=0.982

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 - (3228.388 + 855.095) / 4752.351) / (1 - (3151.589 + 818.838) / 4630.85)
=0.14074465 / 0.14261378
=0.9869

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
=4031.13 / 3794.249
=1.0624

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))
=(163.649 / (163.649 + 818.838)) / (180.629 / (180.629 + 855.095))
=0.16656607 / 0.17439878
=0.9551

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)
=(1555.903 / 4031.13) / (1466.067 / 3794.249)
=0.38597192 / 0.38639188
=0.9989

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)
=((751.154 + 696.74) / 4752.351) / ((765.238 + 586.592) / 4630.85)
=0.30466899 / 0.29191833
=1.0437

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
=(181.369 - 41.621 - 154.652) / 4752.351
=-0.0031

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 -2.45 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 0.91781.01581.05111.02070.87451.01471.02910.83830.90751.0214
GMI 1.03680.9870.98311.01990.97581.02340.95611.00021.03570.982
AQI 0.79721.45271.04171.38170.9151.01761.00681.16991.18120.9869
SGI 1.10241.0491.10721.14760.96940.95121.13861.18071.04151.0624
DEPI 0.87080.93970.99990.76850.94270.91610.93021.13740.95950.9551
SGAI 1.05890.93710.99211.03880.98790.99280.98930.99540.97570.9989
LVGI 0.90740.95241.05981.02471.07050.96940.89090.97941.04211.0437
TATA -0.0098-0.00590.0083-0.0610.028-0.12070.01670.05370.02010.0084
M-score -2.57-2.25-2.31-2.49-2.57-3.05-2.24-2.12-2.36-2.40

Tiffany & Co Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 0.79080.83830.89620.86650.89610.90750.95660.89630.97481.0214
GMI 0.98391.00021.00571.02041.03161.03571.03581.01970.99630.982
AQI 0.97451.16991.18581.161.23671.18121.19831.14061.09530.9869
SGI 1.19941.18071.1521.08731.05321.04151.04581.05251.05951.0624
DEPI 1.1241.13741.10921.00810.94090.95950.94250.95130.97410.9551
SGAI 0.98740.99541.00040.96240.98490.97570.97250.99320.98720.9989
LVGI 0.92150.97941.10011.11021.11071.04211.00670.95410.94841.0437
TATA 0.04550.05370.07140.07580.03380.0094-0.0165-0.0248-0.0192-0.0031
M-score -2.26-2.12-2.05-2.12-2.30-2.41-2.46-2.57-2.49-2.45
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