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TJX Companies Inc (NYSE:TJX)
Beneish M-Score
-2.70 (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 -2.70 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: -2.7

-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 * 1.0295+0.528 * 0.9927+0.404 * 1.0684+0.892 * 1.0749+0.115 * 0.99
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0442+4.679 * -0.0722-0.327 * 0.9855
=-2.70

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

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $289 Mil.
Revenue was 7882.053 + 7542.356 + 8962.075 + 7753.495 = $32,140 Mil.
Gross Profit was 2319.092 + 2170.213 + 2573.883 + 2246.596 = $9,310 Mil.
Total Current Assets was $6,811 Mil.
Total Assets was $11,671 Mil.
Property, Plant and Equipment(Net PPE) was $4,263 Mil.
Depreciation, Depletion and Amortization(DDA) was $643 Mil.
Selling, General & Admin. Expense(SGA) was $5,518 Mil.
Total Current Liabilities was $4,314 Mil.
Long-Term Debt was $1,616 Mil.
Net Income was 562.174 + 508.346 + 666.466 + 587.256 = $2,324 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 738.351 + 420.268 + 1280.779 + 727.984 = $3,167 Mil.
Accounts Receivable was $261 Mil.
Revenue was 7363.731 + 6865.637 + 8303.953 + 7366.066 = $29,899 Mil.
Gross Profit was 2144.54 + 1945.396 + 2344.916 + 2162.437 = $8,597 Mil.
Total Current Assets was $6,669 Mil.
Total Assets was $11,201 Mil.
Property, Plant and Equipment(Net PPE) was $3,996 Mil.
Depreciation, Depletion and Amortization(DDA) was $596 Mil.
Selling, General & Admin. Expense(SGA) was $4,916 Mil.
Total Current Liabilities was $4,161 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)
=(288.777 / 32139.979) / (260.952 / 29899.387)
=0.00898498 / 0.00872767
=1.0295

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)
=(8597.289 / 29899.387) / (9309.784 / 32139.979)
=0.28754064 / 0.28966366
=0.9927

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 - (6810.674 + 4263.38) / 11670.653) / (1 - (6668.639 + 3995.978) / 11200.546)
=0.05111959 / 0.04784847
=1.0684

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
=32139.979 / 29899.387
=1.0749

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))
=(595.782 / (595.782 + 3995.978)) / (643.005 / (643.005 + 4263.38))
=0.12975025 / 0.13105474
=0.99

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)
=(5517.818 / 32139.979) / (4915.771 / 29899.387)
=0.17168082 / 0.16441043
=1.0442

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)
=((1615.952 + 4314.205) / 11670.653) / ((1614.055 + 4160.861) / 11200.546)
=0.50812555 / 0.51559236
=0.9855

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
=(2324.242 - 0 - 3167.382) / 11670.653
=-0.0722

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 -2.70 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 0.76381.15980.96650.96671.24940.96580.97730.88990.95981.0462
GMI 0.97010.9861.01910.91740.97490.98430.96120.99720.99850.9915
AQI 0.73811.15061.00630.87991.03281.0151.15810.87020.93591.0373
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 0.94211.04440.93150.96790.99610.94481.02610.98531.08761.0402
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

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 0.93941.0410.99480.95980.96961.01470.99051.04620.99561.0295
GMI 1.00261.00951.01370.99850.99190.98670.99050.99150.99120.9927
AQI 0.87630.83931.07070.93590.92360.94640.94961.03731.05011.0684
SGI 1.05541.05351.04561.06041.06231.06031.05961.06421.07361.0749
DEPI 1.02361.02441.01741.00241.02041.01781.01131.01871.01720.99
SGAI 0.990.98070.98050.99130.99751.01461.02791.04181.04441.0442
LVGI 0.98431.04981.04081.08761.07481.03351.02141.04020.98440.9855
TATA -0.0636-0.0626-0.0541-0.0707-0.0643-0.0519-0.0484-0.0574-0.0511-0.0722
M-score -2.82-2.76-2.67-2.85-2.81-2.70-2.70-2.66-2.64-2.70
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