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TJX Companies (NYSE:TJX)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

TJX' s 10-Year Beneish M-Score Range
Min: -3.59   Max: -0.23
Current: -2.75

-3.59
-0.23

During the past 13 years, the highest Beneish M-Score of TJX Companies was -0.23. The lowest was -3.59. 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 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 * 1.041+0.528 * 1.0095+0.404 * 0.8393+0.892 * 1.0535+0.115 * 1.0244
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9807+4.679 * -0.0605-0.327 * 1.0498
=-2.75

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $243 Mil.
Revenue was 6917.212 + 6491.176 + 7808.787 + 6981.876 = $28,199 Mil.
Gross Profit was 1981.356 + 1813.176 + 2158.487 + 2047.411 = $8,000 Mil.
Total Current Assets was $6,594 Mil.
Total Assets was $10,922 Mil.
Property, Plant and Equipment(Net PPE) was $3,776 Mil.
Depreciation, Depletion and Amortization(DDA) was $575 Mil.
Selling, General & Admin. Expense(SGA) was $4,570 Mil.
Total Current Liabilities was $3,825 Mil.
Long-Term Debt was $1,624 Mil.
Net Income was 517.624 + 454.317 + 582.292 + 622.655 = $2,177 Mil.
Non Operating Income was -16.83 + 0 + 0 + 0 = $-17 Mil.
Cash Flow from Operations was 602.235 + 473.749 + 956.957 + 822.093 = $2,855 Mil.
Accounts Receivable was $221 Mil.
Revenue was 6442.424 + 6189.609 + 7723.814 + 6410.913 = $26,767 Mil.
Gross Profit was 1855.685 + 1756.076 + 2209.288 + 1844.84 = $7,666 Mil.
Total Current Assets was $5,950 Mil.
Total Assets was $9,926 Mil.
Property, Plant and Equipment(Net PPE) was $3,378 Mil.
Depreciation, Depletion and Amortization(DDA) was $528 Mil.
Selling, General & Admin. Expense(SGA) was $4,423 Mil.
Total Current Liabilities was $3,443 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)
=(242.549 / 28199.051) / (221.164 / 26766.76)
=0.00860132 / 0.00826264
=1.041

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)
=(1813.176 / 26766.76) / (1981.356 / 28199.051)
=0.28639585 / 0.28371274
=1.0095

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 - (6593.763 + 3776.037) / 10921.997) / (1 - (5950.244 + 3377.839) / 9926.043)
=0.05055824 / 0.06024153
=0.8393

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
=28199.051 / 26766.76
=1.0535

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))
=(528.438 / (528.438 + 3377.839)) / (574.504 / (574.504 + 3776.037))
=0.13527919 / 0.13205346
=1.0244

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)
=(4569.668 / 28199.051) / (4423.035 / 26766.76)
=0.16205042 / 0.16524357
=0.9807

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)
=((1623.769 + 3824.929) / 10921.997) / ((1274.156 + 3442.881) / 9926.043)
=0.49887379 / 0.47521827
=1.0498

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
=(2176.888 - -16.83 - 2855.034) / 10921.997
=-0.0605

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 -2.75 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 1.18011.09590.76381.15980.96650.96671.24940.96580.97730.8899
GMI 1.02691.00540.97010.9861.01910.91740.97490.98430.96120.9972
AQI 0.94731.01110.73811.15061.00630.87991.03281.0151.15810.8702
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 -0.087-0.0799-0.0725-0.0895-0.0443-0.1418-0.0794-0.0507-0.1197-0.0444
M-score -2.64-2.70-3.07-2.65-2.64-3.20-2.55-2.68-2.91-2.78

TJX Companies Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.93880.86190.92640.97731.00230.99110.95780.88990.93941.041
GMI 0.96730.96640.96550.96120.97160.97270.97440.99721.00261.0095
AQI 1.03821.01210.96941.15811.15121.18241.02960.87020.87630.8393
SGI 1.07331.07541.08991.11591.10521.10391.09951.05971.05541.0535
DEPI 1.02731.01011.0571.11281.07971.09341.05811.02951.02361.0244
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 -0.0975-0.1362-0.1513-0.1197-0.0692-0.0554-0.0412-0.0444-0.0618-0.0605
M-score -2.90-3.16-3.18-2.91-2.67-2.60-2.63-2.78-2.81-2.75
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