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VF Corp (NYSE:VFC)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

VFC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.73   Max: -1.16
Current: -2.46

-3.73
-1.16

During the past 13 years, the highest Beneish M-Score of VF Corp was -1.16. The lowest was -3.73. And the median was -2.55.


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 * 1.0296+0.528 * 1.0096+0.404 * 0.941+0.892 * 1.0077+0.115 * 1.0462
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9968+4.679 * 0.0087-0.327 * 1.1278
=-2.46

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $1,242 Mil.
Revenue was 3412.763 + 3612.82 + 2513.86 + 2837.301 = $12,377 Mil.
Gross Profit was 1649.466 + 1729.21 + 1213.514 + 1390.754 = $5,983 Mil.
Total Current Assets was $4,163 Mil.
Total Assets was $9,640 Mil.
Property, Plant and Equipment(Net PPE) was $988 Mil.
Depreciation, Depletion and Amortization(DDA) was $272 Mil.
Selling, General & Admin. Expense(SGA) was $4,178 Mil.
Total Current Liabilities was $1,942 Mil.
Long-Term Debt was $1,402 Mil.
Net Income was 312.209 + 459.864 + 170.811 + 288.709 = $1,232 Mil.
Non Operating Income was 1.437 + -1.28 + 0.67 + 0.828 = $2 Mil.
Cash Flow from Operations was 1477.471 + -44.515 + 144.178 + -430.624 = $1,147 Mil.
Accounts Receivable was $1,197 Mil.
Revenue was 3578.86 + 3520.447 + 2402.076 + 2780.778 = $12,282 Mil.
Gross Profit was 1755.235 + 1701.792 + 1162.732 + 1374.212 = $5,994 Mil.
Total Current Assets was $4,032 Mil.
Total Assets was $9,845 Mil.
Property, Plant and Equipment(Net PPE) was $942 Mil.
Depreciation, Depletion and Amortization(DDA) was $275 Mil.
Selling, General & Admin. Expense(SGA) was $4,160 Mil.
Total Current Liabilities was $1,614 Mil.
Long-Term Debt was $1,414 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)
=(1241.839 / 12376.744) / (1196.933 / 12282.161)
=0.10033649 / 0.09745296
=1.0296

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)
=(1729.21 / 12282.161) / (1649.466 / 12376.744)
=0.48802251 / 0.4834021
=1.0096

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 - (4163.136 + 988.159) / 9639.542) / (1 - (4031.569 + 942.181) / 9845.3)
=0.46560791 / 0.49480971
=0.941

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
=12376.744 / 12282.161
=1.0077

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))
=(274.883 / (274.883 + 942.181)) / (272.075 / (272.075 + 988.159))
=0.22585747 / 0.21589245
=1.0462

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)
=(4178.386 / 12376.744) / (4159.885 / 12282.161)
=0.33759978 / 0.33869325
=0.9968

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)
=((1401.82 + 1941.713) / 9639.542) / ((1413.847 + 1614.065) / 9845.3)
=0.346856 / 0.30754898
=1.1278

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
=(1231.593 - 1.655 - 1146.51) / 9639.542
=0.0087

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 -2.46 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

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.9941.02311.03990.98760.87260.91970.96251.01361.02961.0046
GMI 0.96810.97380.98420.98520.98480.9930.99331.00041.00961.0118
AQI 0.9590.97950.960.94830.92810.87950.88560.89830.9411.0177
SGI 1.04961.05971.06871.07441.07551.06471.05781.04581.00771.0032
DEPI 1.04520.99790.96150.96980.94550.94261.02021.03411.04621.0705
SGAI 1.01751.01391.00791.00721.0071.00371.00451.00030.99681.005
LVGI 0.88460.91.00281.02441.05931.27961.21051.15411.12781.0513
TATA -0.0283-0.0264-0.0168-0.0144-0.0655-0.0218-0.01390.0040.0087-0.0234
M-score -2.57-2.52-2.49-2.53-2.90-2.75-2.65-2.50-2.46-2.58
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