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VF Corp (NYSE:VFC)
Beneish M-Score
-2.90 (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 -2.90 suggests that the company is not a manipulator.

VFC' s 10-Year Beneish M-Score Range
Min: -3.73   Max: -1.16
Current: -2.9

-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 -2.57.


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 * 0.8726+0.528 * 0.9848+0.404 * 0.9119+0.892 * 1.0755+0.115 * 0.9455
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.007+4.679 * -0.0646-0.327 * 1.0505
=-2.90

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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 $4,186 Mil.
Total Assets was $9,980 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 $1,620 Mil.
Long-Term Debt was $1,424 Mil.
Net Income was 122.101 + 470.529 + 157.682 + 297.193 = $1,048 Mil.
Non Operating Income was -1.335 + -1.609 + -0.508 + -2.092 = $-6 Mil.
Cash Flow from Operations was 1330.783 + 147.259 + 205.933 + 13.654 = $1,698 Mil.
Accounts Receivable was $1,275 Mil.
Revenue was 3290.099 + 3297.269 + 2220.411 + 2611.869 = $11,420 Mil.
Gross Profit was 1585.409 + 1569.125 + 1077.053 + 1256.592 = $5,488 Mil.
Total Current Assets was $3,883 Mil.
Total Assets was $10,315 Mil.
Property, Plant and Equipment(Net PPE) was $933 Mil.
Depreciation, Depletion and Amortization(DDA) was $253 Mil.
Selling, General & Admin. Expense(SGA) was $3,841 Mil.
Total Current Liabilities was $1,568 Mil.
Long-Term Debt was $1,427 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)
=(1196.933 / 12282.161) / (1275.319 / 11419.648)
=0.09745296 / 0.11167761
=0.8726

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)
=(1701.792 / 11419.648) / (1755.235 / 12282.161)
=0.48059091 / 0.48802251
=0.9848

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 - (4185.854 + 942.181) / 9980.14) / (1 - (3882.982 + 932.792) / 10315.443)
=0.48617605 / 0.53314909
=0.9119

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
=12282.161 / 11419.648
=1.0755

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))
=(253.273 / (253.273 + 932.792)) / (274.883 / (274.883 + 942.181))
=0.21354057 / 0.22585747
=0.9455

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)
=(4159.885 / 12282.161) / (3841.032 / 11419.648)
=0.33869325 / 0.33635292
=1.007

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)
=((1423.581 + 1620.241) / 9980.14) / ((1426.829 + 1568.001) / 10315.443)
=0.30498791 / 0.2903249
=1.0505

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
=(1047.505 - -5.544 - 1697.629) / 9980.14
=-0.0646

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 -2.90 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.84030.94870.92160.9650.99380.9941.02311.03990.98760.8726
GMI 1.00580.9840.96540.95630.95980.96810.97380.98420.98520.9848
AQI 0.97790.9610.99280.99040.98670.9590.97950.960.94830.9119
SGI 1.23991.15021.08731.06331.03771.04961.05971.06871.07441.0755
DEPI 0.8870.95111.00831.07011.06131.04520.99790.96150.96980.9455
SGAI 1.01531.01341.01841.00611.01181.01751.01391.00791.00721.007
LVGI 0.85850.87380.840.84270.87310.88460.91.00281.02441.0505
TATA -0.0249-0.0245-0.032-0.039-0.0396-0.0283-0.0264-0.0168-0.0144-0.0646
M-score -2.50-2.50-2.60-2.61-2.62-2.57-2.52-2.49-2.53-2.90
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