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TJX Companies Inc (NYSE:TJX)
Beneish M-Score
-2.64 (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 Inc has a M-score of -2.64 suggests that the company is not a manipulator.

TJX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.32   Max: -2.32
Current: -2.64

-3.32
-2.32

During the past 13 years, the highest Beneish M-Score of TJX Companies Inc was -2.32. The lowest was -3.32. And the median was -2.76.


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 Inc 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 * 0.9956+0.528 * 0.9912+0.404 * 1.0501+0.892 * 1.0736+0.115 * 1.0172
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0444+4.679 * -0.0511-0.327 * 0.9844
=-2.64

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $282 Mil.
Revenue was 7542.356 + 8962.075 + 7753.495 + 7363.731 = $31,622 Mil.
Gross Profit was 2170.213 + 2573.883 + 2246.596 + 2144.54 = $9,135 Mil.
Total Current Assets was $6,878 Mil.
Total Assets was $11,705 Mil.
Property, Plant and Equipment(Net PPE) was $4,230 Mil.
Depreciation, Depletion and Amortization(DDA) was $625 Mil.
Selling, General & Admin. Expense(SGA) was $5,372 Mil.
Total Current Liabilities was $4,297 Mil.
Long-Term Debt was $1,615 Mil.
Net Income was 508.346 + 666.466 + 587.256 + 549.335 = $2,311 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 420.268 + 1280.779 + 727.984 + 481.041 = $2,910 Mil.
Accounts Receivable was $263 Mil.
Revenue was 6865.637 + 8303.953 + 7366.066 + 6917.212 = $29,453 Mil.
Gross Profit was 1945.396 + 2344.916 + 2162.437 + 1981.356 = $8,434 Mil.
Total Current Assets was $6,725 Mil.
Total Assets was $11,206 Mil.
Property, Plant and Equipment(Net PPE) was $3,937 Mil.
Depreciation, Depletion and Amortization(DDA) was $593 Mil.
Selling, General & Admin. Expense(SGA) was $4,791 Mil.
Total Current Liabilities was $4,137 Mil.
Long-Term Debt was $1,614 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)
=(281.631 / 31621.657) / (263.466 / 29452.868)
=0.00890627 / 0.00894534
=0.9956

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)
=(8434.105 / 29452.868) / (9135.232 / 31621.657)
=0.28635938 / 0.28889163
=0.9912

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 - (6877.701 + 4229.704) / 11704.722) / (1 - (6724.521 + 3936.731) / 11205.843)
=0.05103214 / 0.04859884
=1.0501

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
=31621.657 / 29452.868
=1.0736

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))
=(593.36 / (593.36 + 3936.731)) / (625.17 / (625.17 + 4229.704))
=0.13098192 / 0.12877162
=1.0172

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)
=(5372.108 / 31621.657) / (4790.991 / 29452.868)
=0.16988699 / 0.16266637
=1.0444

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)
=((1615.477 + 4296.735) / 11704.722) / ((1613.581 + 4136.536) / 11205.843)
=0.50511341 / 0.5131356
=0.9844

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
=(2311.403 - 0 - 2910.072) / 11704.722
=-0.0511

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 Inc has a M-score of -2.64 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 Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.75551.16050.98290.96671.24940.96580.97730.88990.95981.0462
GMI 0.97320.98371.010.92430.97490.98430.96120.99720.99850.9915
AQI 0.73811.15061.00630.87991.03281.0151.15810.87020.93591.0373
SGI 1.08391.07141.01891.06781.08151.05691.11591.05971.06041.0642
DEPI 0.98471.07170.93951.06741.01871.03421.11281.02951.00241.0187
SGAI 0.99191.05930.92710.9931.03050.99210.97920.99180.99131.0418
LVGI 0.94211.04440.93150.96790.99610.94481.02610.98531.08761.0402
TATA -0.0751-0.0893-0.0443-0.1471-0.0745-0.055-0.1197-0.0444-0.0707-0.0574
M-score -3.08-2.65-2.65-3.21-2.53-2.70-2.91-2.78-2.85-2.66

TJX Companies Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 0.88990.93941.0410.99480.95980.96961.01470.99051.04620.9956
GMI 0.99721.00261.00951.01370.99850.99190.98670.99050.99150.9912
AQI 0.87020.87630.83931.07070.93590.92360.95610.94961.03731.0501
SGI 1.05971.05541.05351.04561.06041.06231.06031.05961.06421.0736
DEPI 1.02951.02361.02441.01741.00241.02041.01781.01131.01871.0172
SGAI 0.99180.990.98070.98050.99130.99751.01461.02791.04181.0444
LVGI 0.98530.98431.04981.04081.08761.07481.02251.02141.04020.9844
TATA -0.0454-0.0636-0.0626-0.0541-0.0707-0.0643-0.0513-0.0484-0.0574-0.0511
M-score -2.78-2.82-2.76-2.67-2.85-2.81-2.69-2.70-2.66-2.64
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