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VF Corp (NYSE:VFC)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

VFC' s 10-Year Beneish M-Score Range
Min: -4.23   Max: -1.08
Current: -2.75

-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 * 0.9197+0.528 * 0.993+0.404 * 0.8795+0.892 * 1.0647+0.115 * 0.9426
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0037+4.679 * -0.0218-0.327 * 1.2796
=-2.75

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,283 Mil.
Revenue was 2837.301 + 3578.86 + 3520.447 + 2402.076 = $12,339 Mil.
Gross Profit was 1390.754 + 1755.235 + 1701.792 + 1162.732 = $6,011 Mil.
Total Current Assets was $4,082 Mil.
Total Assets was $9,733 Mil.
Property, Plant and Equipment(Net PPE) was $911 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $4,182 Mil.
Total Current Liabilities was $2,278 Mil.
Long-Term Debt was $1,423 Mil.
Net Income was 288.709 + 122.101 + 470.529 + 157.682 = $1,039 Mil.
Non Operating Income was 0.828 + -1.335 + -1.609 + -0.508 = $-3 Mil.
Cash Flow from Operations was -430.624 + 1330.783 + 147.259 + 205.933 = $1,253 Mil.
Accounts Receivable was $1,310 Mil.
Revenue was 2780.778 + 3290.099 + 3297.269 + 2220.411 = $11,589 Mil.
Gross Profit was 1374.212 + 1585.409 + 1569.125 + 1077.053 = $5,606 Mil.
Total Current Assets was $3,535 Mil.
Total Assets was $9,985 Mil.
Property, Plant and Equipment(Net PPE) was $922 Mil.
Depreciation, Depletion and Amortization(DDA) was $259 Mil.
Selling, General & Admin. Expense(SGA) was $3,913 Mil.
Total Current Liabilities was $1,542 Mil.
Long-Term Debt was $1,426 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)
=(1283.216 / 12338.684) / (1310.468 / 11588.557)
=0.10399942 / 0.11308293
=0.9197

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)
=(1755.235 / 11588.557) / (1390.754 / 12338.684)
=0.48373572 / 0.48712756
=0.993

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 - (4081.526 + 911.478) / 9732.864) / (1 - (3534.521 + 921.97) / 9985.152)
=0.4869954 / 0.55368822
=0.8795

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
=12338.684 / 11588.557
=1.0647

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))
=(259.342 / (259.342 + 921.97)) / (276.746 / (276.746 + 911.478))
=0.21953726 / 0.23290726
=0.9426

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)
=(4181.782 / 12338.684) / (3913.19 / 11588.557)
=0.33891637 / 0.33767707
=1.0037

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)
=((1422.84 + 2278.326) / 9732.864) / ((1425.833 + 1541.533) / 9985.152)
=0.38027512 / 0.29717785
=1.2796

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
=(1039.021 - -2.624 - 1253.351) / 9732.864
=-0.0218

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 -2.75 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.94870.92160.9650.99380.9941.02311.03990.98760.87260.9197
GMI 0.9840.96540.95630.95980.96810.97380.98420.98520.98480.993
AQI 0.9610.99280.99040.98670.9590.97950.960.94830.91190.8795
SGI 1.15021.08731.06331.03771.04961.05971.06871.07441.07551.0647
DEPI 0.95111.00831.07011.06131.04520.99790.96150.96980.94550.9426
SGAI 1.01341.01841.00611.01181.01751.01391.00791.00721.0071.0037
LVGI 0.87380.840.84270.87310.88460.91.00281.02441.05051.2796
TATA -0.0245-0.032-0.039-0.0396-0.0283-0.0264-0.0168-0.0144-0.0646-0.0218
M-score -2.50-2.60-2.61-2.62-2.57-2.52-2.49-2.53-2.90-2.75
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