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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: -2.3
Current: -2.7

-3.32
-2.3

During the past 13 years, the highest Beneish M-Score of TJX Companies Inc was -2.30. The lowest was -3.32. And the median was -2.75.


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 * 0.9905+0.528 * 0.9905+0.404 * 0.9496+0.892 * 1.0596+0.115 * 1.0113
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0279+4.679 * -0.0484-0.327 * 1.0214
=-2.70

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
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.
Net Income was 587.256 + 549.335 + 474.601 + 648.23 = $2,259 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 727.984 + 481.041 + 447.539 + 1182.828 = $2,839 Mil.
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.



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)
=(273.856 / 30286.816) / (260.94 / 28583.241)
=0.00904209 / 0.00912913
=0.9905

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)
=(2144.54 / 28583.241) / (2246.596 / 30286.816)
=0.28392358 / 0.28664116
=0.9905

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 - (7348.157 + 4066.987) / 11992.433) / (1 - (7154.622 + 3849.804) / 11592.048)
=0.04813777 / 0.05069182
=0.9496

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
=30286.816 / 28583.241
=1.0596

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))
=(579.703 / (579.703 + 3849.804)) / (604.519 / (604.519 + 4066.987))
=0.13087303 / 0.12940559
=1.0113

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)
=(5014.875 / 30286.816) / (4604.297 / 28583.241)
=0.16557947 / 0.1610838
=1.0279

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)
=((1624.007 + 4730.078) / 11992.433) / ((1623.817 + 4389.582) / 11592.048)
=0.52984119 / 0.51875208
=1.0214

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
=(2259.422 - 0 - 2839.392) / 11992.433
=-0.0484

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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 1.09590.76381.15980.96650.96671.24940.96580.97730.88990.9598
GMI 1.00540.97010.9861.01910.91740.97490.98430.96120.99720.9985
AQI 1.01110.73811.15061.00630.87991.03281.0151.15810.87020.9276
SGI 1.07371.0721.07211.03611.06781.08151.05691.11591.05971.0604
DEPI 1.01130.98471.07171.03880.96531.01871.03421.11281.02951.0024
SGAI 1.0120.9851.05770.9350.99421.03050.99210.97920.99180.9913
LVGI 1.00790.94211.04440.93150.96790.99610.94481.02610.98531.0739
TATA -0.0799-0.0725-0.0895-0.0443-0.1418-0.0794-0.0507-0.1197-0.0454-0.0698
M-score -2.70-3.07-2.65-2.64-3.20-2.55-2.68-2.91-2.78-2.84

TJX Companies Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 0.99110.95780.88990.93941.0410.99480.95980.96961.01470.9905
GMI 0.97270.97440.99721.00261.00951.01370.99850.99190.98670.9905
AQI 1.18241.02960.87020.87630.83931.07070.92760.93150.95610.9496
SGI 1.10391.09951.05971.05541.05351.04561.06041.06231.06031.0596
DEPI 1.09341.05811.02951.02361.02441.01741.00241.02041.01781.0113
SGAI 1.01881.0040.99180.990.98070.98050.99130.99751.01461.0279
LVGI 1.02611.04530.98530.98431.04981.04081.07391.06161.02251.0214
TATA -0.0554-0.0412-0.0454-0.0636-0.0626-0.0541-0.0698-0.0634-0.0513-0.0484
M-score -2.60-2.63-2.78-2.82-2.76-2.67-2.84-2.80-2.69-2.70
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