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VF Corp (NYSE:VFC)
Beneish M-Score
-2.57 (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 -2.57 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: -2.57

-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 * 1.0046+0.528 * 1.0118+0.404 * 0.9997+0.892 * 1.0032+0.115 * 1.0705
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.005+4.679 * -0.0204-0.327 * 1.0412
=-2.57

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1,293 Mil.
Revenue was 2839.3 + 3412.763 + 3612.82 + 2513.86 = $12,379 Mil.
Gross Profit was 1367.294 + 1649.466 + 1729.21 + 1213.514 = $5,959 Mil.
Total Current Assets was $3,973 Mil.
Total Assets was $9,832 Mil.
Property, Plant and Equipment(Net PPE) was $986 Mil.
Depreciation, Depletion and Amortization(DDA) was $274 Mil.
Selling, General & Admin. Expense(SGA) was $4,217 Mil.
Total Current Liabilities was $2,529 Mil.
Long-Term Debt was $1,401 Mil.
Net Income was 260.269 + 312.209 + 459.864 + 170.811 = $1,203 Mil.
Non Operating Income was 1.29 + 1.437 + -1.28 + 0.67 = $2 Mil.
Cash Flow from Operations was -145.586 + 1477.471 + -44.515 + 114.5 = $1,402 Mil.
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 $3,928 Mil.
Total Assets was $9,599 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 $2,272 Mil.
Long-Term Debt was $1,413 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)
=(1293.275 / 12378.743) / (1283.216 / 12338.684)
=0.10447547 / 0.10399942
=1.0046

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)
=(6010.513 / 12338.684) / (5959.484 / 12378.743)
=0.48712756 / 0.48142885
=1.0118

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 - (3972.874 + 986.162) / 9832.263) / (1 - (3928.102 + 911.478) / 9598.705)
=0.49563636 / 0.49580907
=0.9997

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
=12378.743 / 12338.684
=1.0032

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))
=(276.746 / (276.746 + 911.478)) / (274.225 / (274.225 + 986.162))
=0.23290726 / 0.21757206
=1.0705

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)
=(4216.509 / 12378.743) / (4181.782 / 12338.684)
=0.34062497 / 0.33891637
=1.005

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)
=((1401.233 + 2529.467) / 9832.263) / ((1413.333 + 2272.265) / 9598.705)
=0.39977572 / 0.38396825
=1.0412

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
=(1203.153 - 2.117 - 1401.87) / 9832.263
=-0.0204

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 -2.57 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 1.09571.03260.82820.96510.93371.180.94870.9940.87261.0296
GMI 0.94660.9990.98940.99320.94751.02010.9840.96810.98481.0096
AQI 0.96851.16380.99831.0220.94081.23350.9610.9590.92810.941
SGI 0.96691.16151.05860.94471.06681.22811.15021.04961.07551.0077
DEPI 1.0870.98730.86680.94560.97261.05220.95111.04520.94551.0462
SGAI 1.02610.99881.05151.0221.0330.97591.01341.01751.0070.9968
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 -2.38-2.47-2.65-2.92-2.86-2.15-2.50-2.57-2.90-2.46

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 0.9590.97950.960.94830.92810.89550.88560.89830.9410.9997
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 0.88460.91.00281.02441.05931.2921.21051.15411.12781.0412
TATA -0.0283-0.0264-0.0168-0.0144-0.0655-0.0251-0.01390.0040.0087-0.0204
M-score -2.57-2.52-2.49-2.53-2.90-2.76-2.65-2.50-2.46-2.57
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