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TJX Companies (NYSE:TJX)
Beneish M-Score
-2.66 (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 -2.66 suggests that the company is not a manipulator.

TJX' s 10-Year Beneish M-Score Range
Min: -3.32   Max: -2.27
Current: -2.66

-3.32
-2.27

During the past 13 years, the highest Beneish M-Score of TJX Companies was -2.27. The lowest was -3.32. And the median was -2.72.


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 * 0.9948+0.528 * 1.0137+0.404 * 1.0707+0.892 * 1.0456+0.115 * 1.0174
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9805+4.679 * -0.052-0.327 * 1.0408
=-2.66

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $261 Mil.
Revenue was 7366.066 + 6917.212 + 6491.176 + 7808.787 = $28,583 Mil.
Gross Profit was 2162.437 + 1981.356 + 1813.176 + 2158.487 = $8,115 Mil.
Total Current Assets was $7,155 Mil.
Total Assets was $11,592 Mil.
Property, Plant and Equipment(Net PPE) was $3,850 Mil.
Depreciation, Depletion and Amortization(DDA) was $580 Mil.
Selling, General & Admin. Expense(SGA) was $4,604 Mil.
Total Current Liabilities was $4,390 Mil.
Long-Term Debt was $1,624 Mil.
Net Income was 594.957 + 517.624 + 454.317 + 582.292 = $2,149 Mil.
Non Operating Income was 0 + -16.83 + 0 + 0 = $-17 Mil.
Cash Flow from Operations was 736.353 + 602.235 + 473.749 + 956.957 = $2,769 Mil.
Accounts Receivable was $251 Mil.
Revenue was 6981.876 + 6442.424 + 6189.609 + 7723.814 = $27,338 Mil.
Gross Profit was 2047.411 + 1855.685 + 1756.076 + 2209.288 = $7,868 Mil.
Total Current Assets was $6,624 Mil.
Total Assets was $10,669 Mil.
Property, Plant and Equipment(Net PPE) was $3,541 Mil.
Depreciation, Depletion and Amortization(DDA) was $544 Mil.
Selling, General & Admin. Expense(SGA) was $4,491 Mil.
Total Current Liabilities was $4,044 Mil.
Long-Term Debt was $1,274 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)
=(260.94 / 28583.241) / (250.886 / 27337.723)
=0.00912913 / 0.00917728
=0.9948

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)
=(1981.356 / 27337.723) / (2162.437 / 28583.241)
=0.28782426 / 0.28392358
=1.0137

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 - (7154.622 + 3849.804) / 11592.048) / (1 - (6623.575 + 3540.532) / 10669.239)
=0.05069182 / 0.04734471
=1.0707

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
=28583.241 / 27337.723
=1.0456

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))
=(543.844 / (543.844 + 3540.532)) / (579.703 / (579.703 + 3849.804))
=0.13315229 / 0.13087303
=1.0174

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)
=(4604.297 / 28583.241) / (4491.421 / 27337.723)
=0.1610838 / 0.1642939
=0.9805

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)
=((1623.817 + 4389.582) / 11592.048) / ((1274.186 + 4043.741) / 10669.239)
=0.51875208 / 0.49843546
=1.0408

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
=(2149.19 - -16.83 - 2769.294) / 11592.048
=-0.052

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 -2.66 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 1.17591.09280.75551.16050.98290.96671.24940.96580.97730.8899
GMI 1.0271.01340.97320.98371.010.92430.97490.98430.96120.9972
AQI 0.94731.01110.73811.15061.00630.87991.03281.0151.15810.8702
SGI 1.1191.07671.08391.07141.01891.06781.08151.05691.11591.0597
DEPI 0.96990.80210.98471.07170.93951.06741.01871.03421.11281.0295
SGAI 1.01031.03840.99191.05930.92710.9931.03050.99210.97920.9918
LVGI 1.01891.00790.94211.04440.93150.96790.99610.94481.02610.9853
TATA -0.0768-0.0797-0.0725-0.0895-0.042-0.1418-0.0809-0.0507-0.1197-0.0444
M-score -2.59-2.72-3.07-2.65-2.64-3.18-2.56-2.68-2.91-2.78

TJX Companies Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 0.86190.92640.97731.00230.99110.95780.88990.93941.0410.9948
GMI 0.96640.96550.96120.97160.97270.97440.99721.00261.00951.0137
AQI 1.01210.96941.15811.15121.18241.02960.87020.87630.83931.0707
SGI 1.07541.08991.11591.10521.10391.09951.05971.05541.05351.0456
DEPI 1.01011.0571.11281.07971.09341.05811.02951.02361.02441.0174
SGAI 0.93450.9440.97921.00971.01881.0040.99180.990.98070.9805
LVGI 0.94280.97671.02611.04791.02611.04530.98530.98431.04981.0408
TATA -0.1363-0.1514-0.1198-0.0693-0.0554-0.0412-0.0444-0.0618-0.0605-0.052
M-score -3.16-3.18-2.91-2.67-2.60-2.63-2.78-2.81-2.75-2.66
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