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TJX Companies (NYSE:TJX)
Beneish M-Score
-1.74 (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 -1.74 signals that the company is a manipulator.

TJX' s 10-Year Beneish M-Score Range
Min: -3.32   Max: -1.43
Current: -1.74

-3.32
-1.43

During the past 13 years, the highest Beneish M-Score of TJX Companies was -1.43. 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 * 2.1108+0.528 * 1.0026+0.404 * 0.8763+0.892 * 1.0554+0.115 * 1.031
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.99+4.679 * -0.0618-0.327 * 0.9843
=-1.74

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $575 Mil.
Revenue was 6491.176 + 7808.787 + 6981.876 + 6442.424 = $27,724 Mil.
Gross Profit was 1813.176 + 2158.487 + 2047.411 + 1855.685 = $7,875 Mil.
Total Current Assets was $6,236 Mil.
Total Assets was $10,430 Mil.
Property, Plant and Equipment(Net PPE) was $3,646 Mil.
Depreciation, Depletion and Amortization(DDA) was $558 Mil.
Selling, General & Admin. Expense(SGA) was $4,521 Mil.
Total Current Liabilities was $3,705 Mil.
Long-Term Debt was $1,274 Mil.
Net Income was 454.317 + 582.292 + 622.655 + 479.559 = $2,139 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 473.8 + 956.9 + 822.093 + 530.53 = $2,783 Mil.
Accounts Receivable was $258 Mil.
Revenue was 6189.609 + 7723.814 + 6410.913 + 5945.559 = $26,270 Mil.
Gross Profit was 1756.076 + 2209.288 + 1844.84 + 1670.486 = $7,481 Mil.
Total Current Assets was $5,976 Mil.
Total Assets was $9,840 Mil.
Property, Plant and Equipment(Net PPE) was $3,273 Mil.
Depreciation, Depletion and Amortization(DDA) was $519 Mil.
Selling, General & Admin. Expense(SGA) was $4,327 Mil.
Total Current Liabilities was $3,499 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)
=(574.7 / 27724.263) / (257.985 / 26269.895)
=0.02072914 / 0.00982056
=2.1108

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)
=(2158.487 / 26269.895) / (1813.176 / 27724.263)
=0.28476284 / 0.28403853
=1.0026

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 - (6235.5 + 3645.6) / 10429.9) / (1 - (5976.143 + 3273.322) / 9840.364)
=0.05261795 / 0.06004849
=0.8763

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
=27724.263 / 26269.895
=1.0554

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))
=(518.834 / (518.834 + 3273.322)) / (557.839 / (557.839 + 3645.6))
=0.13681768 / 0.13271015
=1.031

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)
=(4521.23 / 27724.263) / (4327.229 / 26269.895)
=0.16307846 / 0.16472198
=0.99

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)
=((1274.2 + 3705.3) / 10429.9) / ((1274.126 + 3498.617) / 9840.364)
=0.47742548 / 0.48501692
=0.9843

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
=(2138.823 - 0 - 2783.323) / 10429.9
=-0.0618

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 -1.74 signals that the company is likely to 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 1.18011.09590.76381.15980.96650.96671.24940.96580.97732.353
GMI 1.02691.00540.97010.9861.01910.91740.97490.98430.96120.9972
AQI 0.94731.01110.73811.15061.00630.87991.03281.0151.15810.8701
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 -0.087-0.0799-0.0725-0.0895-0.042-0.1418-0.0809-0.0507-0.1197-0.0444
M-score -2.64-2.70-3.07-2.65-2.62-3.20-2.56-2.68-2.91-1.43

TJX Companies Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.93880.86190.92640.97731.00230.99110.95782.3532.11082.6751
GMI 0.96730.96640.96550.96120.97160.97270.97440.99721.00261.0095
AQI 1.03821.01210.96941.15811.15121.18241.02960.87010.87630.8393
SGI 1.07331.07541.08991.11591.10521.10391.09951.05971.05541.0535
DEPI 1.02731.01011.0571.11281.07971.09341.05811.03711.0311.0315
SGAI 0.94010.93450.9440.97921.00971.01881.0040.99180.990.9807
LVGI 0.95030.94280.97671.02611.04791.02611.04530.98530.98431.0498
TATA -0.0974-0.1363-0.1514-0.1198-0.0693-0.0554-0.0412-0.0444-0.0618-0.0605
M-score -2.90-3.16-3.18-2.91-2.67-2.60-2.63-1.43-1.74-1.24
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