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TJX Companies Inc (NYSE:TJX)
Beneish M-Score
-2.84 (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 -2.84 suggests that the company is not a manipulator.

TJX' s 10-Year Beneish M-Score Range
Min: -3.31   Max: -2.3
Current: -2.84

-3.31
-2.3

During the past 13 years, the highest Beneish M-Score of TJX Companies Inc was -2.30. The lowest was -3.31. And the median was -2.70.


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 * 0.9598+0.528 * 0.9985+0.404 * 0.9276+0.892 * 1.0604+0.115 * 1.0024
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9913+4.679 * -0.0698-0.327 * 1.0739
=-2.84

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $214 Mil.
Revenue was 8303.953 + 7366.066 + 6917.212 + 6491.176 = $29,078 Mil.
Gross Profit was 2344.916 + 2162.437 + 1981.356 + 1813.176 = $8,302 Mil.
Total Current Assets was $6,715 Mil.
Total Assets was $11,128 Mil.
Property, Plant and Equipment(Net PPE) was $3,868 Mil.
Depreciation, Depletion and Amortization(DDA) was $589 Mil.
Selling, General & Admin. Expense(SGA) was $4,695 Mil.
Total Current Liabilities was $3,930 Mil.
Long-Term Debt was $1,685 Mil.
Net Income was 648.23 + 594.957 + 517.624 + 454.317 = $2,215 Mil.
Non Operating Income was 0 + 0 + -16.83 + 0 = $-17 Mil.
Cash Flow from Operations was 1196.032 + 736.353 + 602.235 + 473.749 = $3,008 Mil.
Accounts Receivable was $210 Mil.
Revenue was 7808.787 + 6981.876 + 6442.424 + 6189.609 = $27,423 Mil.
Gross Profit was 2158.487 + 2047.411 + 1855.685 + 1756.076 = $7,818 Mil.
Total Current Assets was $6,068 Mil.
Total Assets was $10,201 Mil.
Property, Plant and Equipment(Net PPE) was $3,595 Mil.
Depreciation, Depletion and Amortization(DDA) was $549 Mil.
Selling, General & Admin. Expense(SGA) was $4,467 Mil.
Total Current Liabilities was $3,518 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)
=(213.824 / 29078.407) / (210.094 / 27422.696)
=0.00735336 / 0.00766132
=0.9598

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)
=(2162.437 / 27422.696) / (2344.916 / 29078.407)
=0.28507988 / 0.28549999
=0.9985

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 - (6715.061 + 3868.365) / 11128.381) / (1 - (6067.998 + 3594.501) / 10201.022)
=0.04896984 / 0.05279108
=0.9276

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
=29078.407 / 27422.696
=1.0604

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))
=(548.823 / (548.823 + 3594.501)) / (588.975 / (588.975 + 3868.365))
=0.13245959 / 0.13213598
=1.0024

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)
=(4695.384 / 29078.407) / (4467.089 / 27422.696)
=0.16147322 / 0.16289751
=0.9913

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)
=((1684.597 + 3929.634) / 11128.381) / ((1274.216 + 3517.843) / 10201.022)
=0.50449666 / 0.46976264
=1.0739

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
=(2215.128 - -16.83 - 3008.369) / 11128.381
=-0.0698

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 -2.84 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

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 0.92640.97731.00230.99110.95780.88990.93941.0410.99480.9598
GMI 0.96550.96120.97160.97270.97440.99721.00261.00951.01370.9985
AQI 0.96941.15811.15121.18241.02960.87020.87630.83931.07070.9276
SGI 1.08991.11591.10521.10391.09951.05971.05541.05351.04561.0604
DEPI 1.0571.11281.07971.09341.05811.02951.02361.02441.01741.0024
SGAI 0.9440.97921.00971.01881.0040.99180.990.98070.98050.9913
LVGI 0.97671.02611.04791.02611.04530.98530.98431.04981.04081.0739
TATA -0.1513-0.1197-0.0692-0.0554-0.0412-0.0454-0.0628-0.0615-0.0529-0.0698
M-score -3.18-2.91-2.67-2.60-2.63-2.78-2.82-2.75-2.66-2.84
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