Switch to:
VF Corp (NYSE:VFC)
Beneish M-Score
-2.55 (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 -2.55 suggests that the company is not a manipulator.

VFC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.23   Max: -1.08
Current: -2.55

-4.23
-1.08

During the past 13 years, the highest Beneish M-Score of VF Corp was -1.08. The lowest was -4.23. And the median was -2.56.


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 * 1.0292+0.528 * 1.0074+0.404 * 0.8983+0.892 * 1.03+0.115 * 1.0341
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9992+4.679 * -0.0076-0.327 * 1.1541
=-2.55

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,871 Mil.
Revenue was 3612.82 + 2513.86 + 2837.301 + 0 = $8,964 Mil.
Gross Profit was 1729.21 + 1213.514 + 1390.754 + 0 = $4,333 Mil.
Total Current Assets was $4,936 Mil.
Total Assets was $10,652 Mil.
Property, Plant and Equipment(Net PPE) was $982 Mil.
Depreciation, Depletion and Amortization(DDA) was $273 Mil.
Selling, General & Admin. Expense(SGA) was $3,070 Mil.
Total Current Liabilities was $2,784 Mil.
Long-Term Debt was $1,411 Mil.
Net Income was 459.864 + 170.811 + 288.709 + 0 = $919 Mil.
Non Operating Income was -1.28 + 0.67 + 0.828 + 0 = $0 Mil.
Cash Flow from Operations was -44.515 + 144.178 + -430.624 + 1330.783 = $1,000 Mil.
Accounts Receivable was $1,765 Mil.
Revenue was 3520.447 + 2402.076 + 2780.778 + 0 = $8,703 Mil.
Gross Profit was 1701.792 + 1162.732 + 1374.212 + 0 = $4,239 Mil.
Total Current Assets was $4,524 Mil.
Total Assets was $10,816 Mil.
Property, Plant and Equipment(Net PPE) was $940 Mil.
Depreciation, Depletion and Amortization(DDA) was $273 Mil.
Selling, General & Admin. Expense(SGA) was $2,983 Mil.
Total Current Liabilities was $2,266 Mil.
Long-Term Debt was $1,424 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)
=(1870.53 / 8963.981) / (1764.636 / 8703.301)
=0.20867179 / 0.20275479
=1.0292

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)
=(1213.514 / 8703.301) / (1729.21 / 8963.981)
=0.48702624 / 0.48343231
=1.0074

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 - (4935.817 + 981.558) / 10651.922) / (1 - (4524.213 + 940.193) / 10815.876)
=0.44447819 / 0.49477916
=0.8983

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
=8963.981 / 8703.301
=1.03

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))
=(272.683 / (272.683 + 940.193)) / (272.668 / (272.668 + 981.558))
=0.22482348 / 0.21739942
=1.0341

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)
=(3069.688 / 8963.981) / (2982.656 / 8703.301)
=0.34244696 / 0.34270399
=0.9992

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)
=((1411.446 + 2783.62) / 10651.922) / ((1424.311 + 2266.478) / 10815.876)
=0.39383184 / 0.3412381
=1.1541

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
=(919.384 - 0.218 - 999.822) / 10651.922
=-0.0076

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 -2.55 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.93830.96371.03260.82820.96510.93371.180.94870.9940.8726
GMI 0.95310.99540.9990.98940.99320.94751.02010.9840.96810.9848
AQI 1.05640.96851.16380.99831.0220.94081.23350.9610.9590.9119
SGI 1.08361.09931.16151.05860.94471.06681.22811.15021.04961.0755
DEPI 1.11410.99251.00230.86680.94560.97261.05220.95111.04520.9455
SGAI 1.04141.01660.99881.05151.0221.0330.97591.01341.01751.007
LVGI 0.9030.86741.1710.94680.93871.0081.18580.87380.88461.0505
TATA -0.01180.0074-0.036-0.0113-0.0794-0.0673-0.02-0.0245-0.0283-0.0646
M-score -2.48-2.37-2.46-2.65-2.92-2.86-2.15-2.50-2.57-2.90

VF Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.95760.99541.0071.03241.04590.99110.87670.92760.97321.0292
GMI 0.95740.96210.96210.96990.98440.98570.98570.99730.99761.0074
AQI 0.99040.98670.9590.97950.960.94830.91190.87950.88560.8983
SGI 1.07151.03611.03611.05021.06261.07061.07061.05561.04621.03
DEPI 1.07011.06131.04520.99790.96150.96980.94550.94261.02021.0341
SGAI 1.01461.02241.02241.01731.0091.0081.0081.00361.00480.9992
LVGI 0.84270.87310.88460.91.00281.02441.05051.27961.21051.1541
TATA -0.0738-0.0714-0.0642-0.0635-0.053-0.0486-0.077-0.0344-0.0264-0.0076
M-score -2.77-2.77-2.74-2.70-2.66-2.69-2.96-2.81-2.70-2.55
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK