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TJX Companies Inc (NYSE:TJX)
Beneish M-Score
-2.78 (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 -2.78 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: -2.78

-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 * 1.037+0.528 * 0.9848+0.404 * 0.9779+0.892 * 1.079+0.115 * 0.9822
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0512+4.679 * -0.0776-0.327 * 1.0446
=-2.78

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Oct16) TTM:Last Year (Oct15) TTM:
Accounts Receivable was $306 Mil.
Revenue was 8291.688 + 7882.053 + 7542.356 + 8962.075 = $32,678 Mil.
Gross Profit was 2447.815 + 2319.092 + 2170.213 + 2573.883 = $9,511 Mil.
Total Current Assets was $7,942 Mil.
Total Assets was $12,867 Mil.
Property, Plant and Equipment(Net PPE) was $4,319 Mil.
Depreciation, Depletion and Amortization(DDA) was $655 Mil.
Selling, General & Admin. Expense(SGA) was $5,688 Mil.
Total Current Liabilities was $4,895 Mil.
Long-Term Debt was $2,227 Mil.
Net Income was 549.786 + 562.174 + 508.346 + 666.466 = $2,287 Mil.
Non Operating Income was -82.946 + 0 + 0 + 0 = $-83 Mil.
Cash Flow from Operations was 928.675 + 738.351 + 420.268 + 1280.779 = $3,368 Mil.
Accounts Receivable was $274 Mil.
Revenue was 7753.495 + 7363.731 + 6865.637 + 8303.953 = $30,287 Mil.
Gross Profit was 2246.596 + 2144.54 + 1945.396 + 2344.916 = $8,681 Mil.
Total Current Assets was $7,348 Mil.
Total Assets was $11,992 Mil.
Property, Plant and Equipment(Net PPE) was $4,067 Mil.
Depreciation, Depletion and Amortization(DDA) was $605 Mil.
Selling, General & Admin. Expense(SGA) was $5,015 Mil.
Total Current Liabilities was $4,730 Mil.
Long-Term Debt was $1,624 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)
=(306.426 / 32678.172) / (273.856 / 30286.816)
=0.00937709 / 0.00904209
=1.037

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)
=(8681.448 / 30286.816) / (9511.003 / 32678.172)
=0.28664116 / 0.29105064
=0.9848

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 - (7942.334 + 4318.829) / 12866.836) / (1 - (7348.157 + 4066.987) / 11992.433)
=0.04707241 / 0.04813777
=0.9779

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
=32678.172 / 30286.816
=1.079

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))
=(604.519 / (604.519 + 4066.987)) / (655.385 / (655.385 + 4318.829))
=0.12940559 / 0.13175649
=0.9822

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)
=(5687.991 / 32678.172) / (5014.875 / 30286.816)
=0.17406087 / 0.16557947
=1.0512

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)
=((2226.913 + 4894.514) / 12866.836) / ((1624.007 + 4730.078) / 11992.433)
=0.5534715 / 0.52984119
=1.0446

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
=(2286.772 - -82.946 - 3368.073) / 12866.836
=-0.0776

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 -2.78 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 local exchange's currency.

TJX Companies Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.76381.15980.96650.96671.24940.96580.97730.88990.95981.0462
GMI 0.97010.9861.01910.91740.97490.98430.96120.99720.99850.9915
AQI 0.73811.15061.00630.87991.03281.0151.15810.87020.93591.0221
SGI 1.0721.07211.03611.06781.08151.05691.11591.05971.06041.0642
DEPI 0.98471.07171.03880.96531.01871.03421.11281.02951.00241.0187
SGAI 0.9851.05770.9350.99421.03050.99210.97920.99180.99131.0418
LVGI 0.94211.04440.93150.96790.99610.94481.02610.98531.08761.025
TATA -0.0751-0.0893-0.0467-0.1366-0.0794-0.0507-0.1208-0.0454-0.0707-0.0574
M-score -3.09-2.65-2.65-3.17-2.55-2.68-2.91-2.78-2.85-2.66

TJX Companies Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
DSRI 1.0410.99480.95980.96961.01470.99051.04620.99561.02951.037
GMI 1.00951.01370.99850.99190.98670.99050.99150.99120.99270.9848
AQI 0.83931.07070.93590.92360.94640.94961.02211.05011.06840.9779
SGI 1.05351.04561.06041.06231.06031.05961.06421.07361.07491.079
DEPI 1.02441.01741.00241.02041.01781.01131.01871.01720.990.9822
SGAI 0.98070.98050.99130.99751.01461.02791.04181.04441.04421.0512
LVGI 1.04981.04081.08761.07481.03351.02141.0250.98440.98551.0446
TATA -0.0626-0.0541-0.0707-0.0643-0.0519-0.0484-0.0574-0.0511-0.0722-0.0776
M-score -2.76-2.67-2.85-2.81-2.70-2.70-2.66-2.64-2.70-2.78
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