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TJX Companies Inc (NYSE:TJX)
Beneish M-Score
-2.66 (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 -2.66 suggests that the company is not a manipulator.

TJX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31   Max: -2.34
Current: -2.66

-3.31
-2.34

During the past 13 years, the highest Beneish M-Score of TJX Companies Inc was -2.34. The lowest was -3.31. 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 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 * 1.0462+0.528 * 0.9915+0.404 * 1.0373+0.892 * 1.0642+0.115 * 1.0187
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0418+4.679 * -0.0574-0.327 * 1.0402
=-2.66

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $238 Mil.
Revenue was 8962.075 + 7753.495 + 7363.731 + 6865.637 = $30,945 Mil.
Gross Profit was 2573.883 + 2246.596 + 2144.54 + 1945.396 = $8,910 Mil.
Total Current Assets was $6,773 Mil.
Total Assets was $11,499 Mil.
Property, Plant and Equipment(Net PPE) was $4,138 Mil.
Depreciation, Depletion and Amortization(DDA) was $617 Mil.
Selling, General & Admin. Expense(SGA) was $5,206 Mil.
Total Current Liabilities was $4,402 Mil.
Long-Term Debt was $1,709 Mil.
Net Income was 666.466 + 587.256 + 549.335 + 474.601 = $2,278 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1280.779 + 727.984 + 481.041 + 447.539 = $2,937 Mil.
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 $6,577 Mil.
Total Assets was $10,989 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.



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)
=(238.072 / 30944.938) / (213.824 / 29078.407)
=0.00769341 / 0.00735336
=1.0462

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)
=(2246.596 / 29078.407) / (2573.883 / 30944.938)
=0.28549999 / 0.28794419
=0.9915

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 - (6772.56 + 4137.575) / 11499.482) / (1 - (6577.444 + 3868.365) / 10988.75)
=0.05124987 / 0.0494088
=1.0373

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
=30944.938 / 29078.407
=1.0642

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))
=(588.975 / (588.975 + 3868.365)) / (616.696 / (616.696 + 4137.575))
=0.13213598 / 0.1297141
=1.0187

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)
=(5205.715 / 30944.938) / (4695.384 / 29078.407)
=0.16822509 / 0.16147322
=1.0418

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)
=((1709.268 + 4402.23) / 11499.482) / ((1684.597 + 3929.634) / 10988.75)
=0.53145855 / 0.51090716
=1.0402

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
=(2277.658 - 0 - 2937.343) / 11499.482
=-0.0574

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 -2.66 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

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 0.95780.88990.93941.0410.99480.95980.96961.01470.99051.0462
GMI 0.97440.99721.00261.00951.01370.99850.99190.98670.99050.9915
AQI 1.02960.87020.87630.83931.07070.93590.93150.95610.94961.0373
SGI 1.09951.05971.05541.05351.04561.06041.06231.06031.05961.0642
DEPI 1.05811.02951.02361.02441.01741.00241.02041.01781.01131.0187
SGAI 1.0040.99180.990.98070.98050.99130.99751.01461.02791.0418
LVGI 1.04530.98530.98431.04981.04081.08761.06161.02251.02141.0402
TATA -0.0421-0.0454-0.0636-0.0626-0.0541-0.0707-0.0634-0.0513-0.0484-0.0574
M-score -2.64-2.78-2.82-2.76-2.67-2.85-2.80-2.69-2.70-2.66
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