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TJX Companies (NYSE:TJX)
Beneish M-Score
-2.63 (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.

TJX Companies has a M-score of -2.78 suggests that the company is not a manipulator.

TJX' s 10-Year Beneish M-Score Range
Min: -3.32   Max: -2.3
Current: -2.63

-3.32
-2.3

During the past 13 years, the highest Beneish M-Score of TJX Companies was -2.30. The lowest was -3.32. And the median was -2.74.


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 TJX Companies 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 * 0.8899+0.528 * 0.9972+0.404 * 0.8702+0.892 * 1.0597+0.115 * 1.0295
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9918+4.679 * -0.0444-0.327 * 0.9853
=-2.78

* 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 $210 Mil.
Revenue was 7808.787 + 6981.876 + 6442.424 + 6189.609 = $27,423 Mil.
Gross Profit was 2158.487 + 2047.411 + 1855.685 + 1756.076 = $7,818 Mil.
Total Current Assets was $6,068 Mil.
Total Assets was $10,201 Mil.
Property, Plant and Equipment(Net PPE) was $3,595 Mil.
Depreciation, Depletion and Amortization(DDA) was $549 Mil.
Selling, General & Admin. Expense(SGA) was $4,467 Mil.
Total Current Liabilities was $3,518 Mil.
Long-Term Debt was $1,274 Mil.
Net Income was 582.292 + 622.655 + 479.559 + 452.89 = $2,137 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 956.957 + 822.093 + 530.53 + 280.749 = $2,590 Mil.
Accounts Receivable was $223 Mil.
Revenue was 7723.814 + 6410.913 + 5945.559 + 5798.086 = $25,878 Mil.
Gross Profit was 2209.288 + 1844.84 + 1670.486 + 1632.358 = $7,357 Mil.
Total Current Assets was $5,712 Mil.
Total Assets was $9,512 Mil.
Property, Plant and Equipment(Net PPE) was $3,223 Mil.
Depreciation, Depletion and Amortization(DDA) was $509 Mil.
Selling, General & Admin. Expense(SGA) was $4,250 Mil.
Total Current Liabilities was $3,761 Mil.
Long-Term Debt was $775 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)
=(210.094 / 27422.696) / (222.788 / 25878.372)
=0.00766132 / 0.00860904
=0.8899

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)
=(2047.411 / 25878.372) / (2158.487 / 27422.696)
=0.28429037 / 0.28507988
=0.9972

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 - (6067.998 + 3594.501) / 10201.022) / (1 - (5711.543 + 3223.242) / 9511.855)
=0.05279108 / 0.0606685
=0.8702

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
=27422.696 / 25878.372
=1.0597

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))
=(508.929 / (508.929 + 3223.242)) / (548.823 / (548.823 + 3594.501))
=0.13636272 / 0.13245959
=1.0295

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)
=(4467.089 / 27422.696) / (4250.446 / 25878.372)
=0.16289751 / 0.16424704
=0.9918

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)
=((1274.216 + 3517.843) / 10201.022) / ((774.552 + 3760.596) / 9511.855)
=0.46976264 / 0.47678902
=0.9853

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
=(2137.396 - 0 - 2590.329) / 10201.022
=-0.0444

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.

TJX Companies has a M-score of -2.78 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.

TJX Companies Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 1.18011.09590.76381.15980.96650.96671.24940.96580.97730.8899
GMI 1.02691.00540.97010.9861.01910.91740.97490.98430.96120.9972
AQI 0.94731.01110.73811.15061.00630.87991.03281.0151.15810.8702
SGI 1.1151.07371.0721.07211.03611.06781.08151.05691.11591.0597
DEPI 0.97941.01130.98471.07171.03880.96531.01871.03421.11281.0295
SGAI 1.00841.0120.9851.05770.9350.99421.03050.99210.97920.9918
LVGI 1.01891.00790.94211.04440.93150.96790.99610.94481.02610.9853
TATA -0.087-0.0799-0.0725-0.0895-0.0443-0.1418-0.0794-0.0507-0.1197-0.0444
M-score -2.64-2.70-3.07-2.65-2.64-3.20-2.55-2.68-2.91-2.78

TJX Companies Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 0.97210.96580.93880.86190.92640.97731.00230.99110.95780.8899
GMI 0.99720.98430.96730.96640.96550.96120.97160.97270.97440.9972
AQI 0.96171.0151.03821.01210.96941.15811.15121.18241.02960.8702
SGI 1.05851.05691.07331.07541.08991.11591.10521.10391.09951.0597
DEPI 1.04481.03421.02731.01011.0571.11281.07971.09341.05811.0295
SGAI 1.05930.99210.94010.93450.9440.97921.00971.01881.0040.9918
LVGI 0.99410.94480.95030.94280.97671.02611.04791.02611.04530.9853
TATA -0.0415-0.0508-0.0975-0.1362-0.1513-0.1197-0.0692-0.0554-0.0412-0.0444
M-score -2.67-2.68-2.90-3.16-3.18-2.91-2.67-2.60-2.63-2.78
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