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Tiffany & Co (NYSE:TIF)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

TIF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05   Max: -2.09
Current: -2.79

-3.05
-2.09

During the past 13 years, the highest Beneish M-Score of Tiffany & Co was -2.09. The lowest was -3.05. 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 * 1.0947+0.528 * 0.9837+0.404 * 0.8964+0.892 * 0.9659+0.115 * 0.9981
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.089+4.679 * -0.0643-0.327 * 1.0017
=-2.79

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $206 Mil.
Revenue was 1213.7 + 938.2 + 990.5 + 962.4 = $4,105 Mil.
Gross Profit was 764.8 + 564.5 + 593 + 569 = $2,491 Mil.
Total Current Assets was $3,508 Mil.
Total Assets was $5,130 Mil.
Property, Plant and Equipment(Net PPE) was $936 Mil.
Depreciation, Depletion and Amortization(DDA) was $203 Mil.
Selling, General & Admin. Expense(SGA) was $1,731 Mil.
Total Current Liabilities was $730 Mil.
Long-Term Debt was $798 Mil.
Net Income was 163.2 + 91 + 104.9 + 104.9 = $464 Mil.
Non Operating Income was -1.2 + 0 + 0 + -18.6 = $-20 Mil.
Cash Flow from Operations was 386.1 + 117.6 + 166.3 + 143.6 = $814 Mil.
Accounts Receivable was $195 Mil.
Revenue was 1285.2 + 959.6 + 992.9 + 1012.1 = $4,250 Mil.
Gross Profit was 781.6 + 570.9 + 595.2 + 589.5 = $2,537 Mil.
Total Current Assets was $3,509 Mil.
Total Assets was $5,181 Mil.
Property, Plant and Equipment(Net PPE) was $900 Mil.
Depreciation, Depletion and Amortization(DDA) was $194 Mil.
Selling, General & Admin. Expense(SGA) was $1,646 Mil.
Total Current Liabilities was $658 Mil.
Long-Term Debt was $883 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)
=(206.4 / 4104.8) / (195.2 / 4249.8)
=0.0502826 / 0.04593157
=1.0947

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)
=(564.5 / 4249.8) / (764.8 / 4104.8)
=0.59701633 / 0.6069236
=0.9837

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 - (3508.4 + 935.8) / 5129.7) / (1 - (3508.8 + 899.5) / 5180.6)
=0.13363355 / 0.1490754
=0.8964

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
=4104.8 / 4249.8
=0.9659

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))
=(194.2 / (194.2 + 899.5)) / (202.5 / (202.5 + 935.8))
=0.1775624 / 0.17789686
=0.9981

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)
=(1731.2 / 4104.8) / (1645.8 / 4249.8)
=0.42175015 / 0.38726528
=1.089

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)
=((798.1 + 729.9) / 5129.7) / ((882.5 + 658) / 5180.6)
=0.29787317 / 0.29735938
=1.0017

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
=(464 - -19.8 - 813.6) / 5129.7
=-0.0643

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 -2.79 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 1.05111.02070.87451.01471.02910.83830.90751.02140.98061.0947
GMI 0.98311.01990.97581.02340.95611.00021.03570.9820.97250.9837
AQI 1.04171.38170.9151.01761.00681.16991.18120.98691.05920.8964
SGI 1.10721.14760.96940.95121.13861.18071.04151.06241.05430.9659
DEPI 0.99990.76850.94270.91610.93021.13740.95950.95520.98210.9981
SGAI 0.99211.03880.98790.99280.98930.99540.97570.99891.00331.089
LVGI 1.05981.02471.07050.96940.89090.97941.04211.04370.9761.0017
TATA 0.0083-0.0610.028-0.12070.01670.05370.01780.0028-0.0077-0.0679
M-score -2.31-2.49-2.57-3.05-2.24-2.12-2.37-2.43-2.47-2.81

Tiffany & Co Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 0.97481.02140.99931.09140.99520.98060.97690.95131.18881.0947
GMI 0.99630.9820.97040.96570.96610.97250.97640.98620.99260.9837
AQI 1.09530.98690.92440.88830.85831.05920.97951.01491.08090.8964
SGI 1.05951.06241.07161.0781.07411.05431.01260.9960.97970.9659
DEPI 0.97410.95520.95310.94940.96990.98211.01911.0220.99850.9981
SGAI 0.98720.99890.98280.98951.0031.00331.0451.06261.05981.089
LVGI 0.94841.04370.99291.01171.06320.9760.98811.0050.95621.0017
TATA -0.02710.00280.00290.01470.0341-0.0014-0.0212-0.0421-0.0681-0.0643
M-score -2.52-2.43-2.45-2.33-2.36-2.44-2.61-2.74-2.61-2.79
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