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VF Corp (NYSE:VFC)
Beneish M-Score
-2.67 (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.

VF Corp has a M-score of -2.67 suggests that the company is not a manipulator.

VFC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.36   Max: -1.13
Current: -2.67

-4.36
-1.13

During the past 13 years, the highest Beneish M-Score of VF Corp was -1.13. The lowest was -4.36. And the median was -2.57.


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 VF Corp 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 * 1.0001+0.528 * 1.011+0.404 * 0.9805+0.892 * 0.9957+0.115 * 1.0013
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0056+4.679 * -0.0342-0.327 * 1.0657
=-2.67

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,165 Mil.
Revenue was 2445.259 + 2839.3 + 3412.763 + 3612.82 = $12,310 Mil.
Gross Profit was 1176.486 + 1367.294 + 1649.466 + 1729.21 = $5,922 Mil.
Total Current Assets was $4,068 Mil.
Total Assets was $9,674 Mil.
Property, Plant and Equipment(Net PPE) was $942 Mil.
Depreciation, Depletion and Amortization(DDA) was $280 Mil.
Selling, General & Admin. Expense(SGA) was $4,191 Mil.
Total Current Liabilities was $2,661 Mil.
Long-Term Debt was $1,401 Mil.
Net Income was 51.015 + 260.269 + 312.209 + 459.864 = $1,083 Mil.
Non Operating Income was 1.501 + 1.29 + 1.437 + -1.28 = $3 Mil.
Cash Flow from Operations was 157.36 + -145.586 + 1477.471 + -78.243 = $1,411 Mil.
Accounts Receivable was $1,170 Mil.
Revenue was 2426.986 + 2837.301 + 3578.86 + 3520.447 = $12,364 Mil.
Gross Profit was 1166.048 + 1390.754 + 1755.235 + 1701.792 = $6,014 Mil.
Total Current Assets was $4,054 Mil.
Total Assets was $9,777 Mil.
Property, Plant and Equipment(Net PPE) was $916 Mil.
Depreciation, Depletion and Amortization(DDA) was $273 Mil.
Selling, General & Admin. Expense(SGA) was $4,186 Mil.
Total Current Liabilities was $2,450 Mil.
Long-Term Debt was $1,402 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)
=(1165.2 / 12310.142) / (1170.15 / 12363.594)
=0.09465366 / 0.09464481
=1.0001

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)
=(6013.829 / 12363.594) / (5922.456 / 12310.142)
=0.48641431 / 0.48110379
=1.011

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 - (4068.016 + 942.044) / 9674.108) / (1 - (4053.703 + 915.841) / 9776.915)
=0.48211659 / 0.49170633
=0.9805

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
=12310.142 / 12363.594
=0.9957

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))
=(272.947 / (272.947 + 915.841)) / (280.282 / (280.282 + 942.044))
=0.22960107 / 0.22930217
=1.0013

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)
=(4191.084 / 12310.142) / (4185.926 / 12363.594)
=0.34045781 / 0.3385687
=1.0056

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)
=((1400.636 + 2660.633) / 9674.108) / ((1401.553 + 2449.738) / 9776.915)
=0.41980811 / 0.39391679
=1.0657

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
=(1083.357 - 2.948 - 1411.002) / 9674.108
=-0.0342

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.

VF Corp has a M-score of -2.67 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.

VF Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.96371.03260.82820.96510.93371.180.94870.9940.87261.0296
GMI 0.99540.9990.98940.99320.94751.02010.9840.96810.98481.0096
AQI 0.96851.16380.99831.0220.94081.23350.9610.9590.92810.941
SGI 1.09931.16151.05860.94471.06681.22811.15021.04961.07551.0077
DEPI 0.99251.00230.86680.94560.97261.05220.95111.04520.94551.0462
SGAI 1.01660.99881.05151.0221.0330.97591.01341.01751.0070.9968
LVGI 0.86741.1710.94680.93871.0081.18580.87380.88461.05931.1278
TATA 0.0074-0.036-0.0113-0.0794-0.0673-0.02-0.0245-0.0283-0.06550.0087
M-score -2.37-2.46-2.65-2.92-2.86-2.15-2.50-2.57-2.90-2.46

VF Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.02311.03990.98760.87260.91970.9451.02061.03691.01171.0001
GMI 0.97380.98420.98520.98480.9930.99411.00121.01051.01281.011
AQI 0.97950.960.94830.92810.89550.9110.89830.9410.99970.9805
SGI 1.05971.06871.07441.07551.06471.05041.03861.00060.99620.9957
DEPI 0.99790.96150.96980.94550.94260.98021.03411.04621.07051.0013
SGAI 1.01391.00791.00721.0071.00371.00120.9970.99341.00171.0056
LVGI 0.91.00281.02441.05931.2921.22111.15411.12781.04121.0657
TATA -0.0264-0.0168-0.0144-0.0655-0.0251-0.01760.0040.0087-0.0204-0.0342
M-score -2.52-2.49-2.53-2.90-2.76-2.68-2.49-2.46-2.57-2.67
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