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VF Corporation (NYSE:VFC)
Beneish M-Score
-2.51 (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 Corporation has a M-score of -2.51 suggests that the company is not a manipulator.

VFC' s 10-Year Beneish M-Score Range
Min: -3.73   Max: -1.16
Current: -2.51

-3.73
-1.16

During the past 13 years, the highest Beneish M-Score of VF Corporation was -1.16. The lowest was -3.73. And the median was -2.52.


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 Corporation 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 * 1.0604+0.528 * 0.9681+0.404 * 0.959+0.892 * 1.0496+0.115 * 1.0452
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0175+4.679 * -0.0283-0.327 * 0.8846
=-2.51

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,360 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.
Net Income was 367.667 + 433.761 + 138.274 + 270.417 = $1,210 Mil.
Non Operating Income was -2.302 + -1.25 + -1.512 + 1.039 = $-4 Mil.
Cash Flow from Operations was 1087.965 + 126.663 + 279.739 + 11.674 = $1,506 Mil.
Accounts Receivable was $1,222 Mil.
Revenue was 3033.26 + 3148.354 + 2141.786 + 2556.455 = $10,880 Mil.
Gross Profit was 1437.748 + 1470.264 + 986.374 + 1167.589 = $5,062 Mil.
Total Current Assets was $3,450 Mil.
Total Assets was $9,633 Mil.
Property, Plant and Equipment(Net PPE) was $828 Mil.
Depreciation, Depletion and Amortization(DDA) was $238 Mil.
Selling, General & Admin. Expense(SGA) was $3,597 Mil.
Total Current Liabilities was $1,732 Mil.
Long-Term Debt was $1,429 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)
=(1360.443 / 11419.648) / (1222.345 / 10879.855)
=0.11913178 / 0.11234938
=1.0604

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)
=(1569.125 / 10879.855) / (1585.409 / 11419.648)
=0.46526126 / 0.48059091
=0.9681

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 - (3882.982 + 932.792) / 10315.443) / (1 - (3449.583 + 828.218) / 9633.021)
=0.53314909 / 0.55592321
=0.959

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
=11419.648 / 10879.855
=1.0496

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))
=(237.956 / (237.956 + 828.218)) / (253.273 / (253.273 + 932.792))
=0.22318683 / 0.21354057
=1.0452

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)
=(3841.032 / 11419.648) / (3596.708 / 10879.855)
=0.33635292 / 0.33058419
=1.0175

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)
=((1426.829 + 1568.001) / 10315.443) / ((1429.166 + 1732.212) / 9633.021)
=0.2903249 / 0.32818137
=0.8846

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
=(1210.119 - -4.025 - 1506.041) / 10315.443
=-0.0283

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 Corporation has a M-score of -2.51 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 Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.18330.93830.96371.03260.82820.96510.93371.180.94871.0604
GMI 0.92110.95310.99540.9990.98940.99320.94751.02010.9840.9681
AQI 1.20531.05640.96851.16380.99831.0220.94081.23350.9610.959
SGI 1.0021.08361.09931.16151.05860.94471.06681.22811.15021.0496
DEPI 0.76031.11410.99251.00230.86680.94560.97261.05220.95111.0452
SGAI 1.11351.04141.01660.99881.05151.0221.0330.97591.01341.0175
LVGI 0.89510.9030.86741.1710.94680.93871.0081.18580.87380.8846
TATA -0.0504-0.01180.0074-0.036-0.0113-0.0794-0.0673-0.02-0.0245-0.0283
M-score -2.52-2.48-2.37-2.46-2.65-2.92-2.86-2.15-2.50-2.51

VF Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.21631.181.06340.91560.84030.94870.92160.9650.99381.0604
GMI 1.00941.02011.02971.02321.00580.9840.96540.95630.95980.9681
AQI 1.12621.23351.21841.23390.97790.9610.99280.99040.98670.959
SGI 1.1581.22811.27121.26981.23991.15021.08731.06331.03771.0496
DEPI 1.09251.05221.01250.96910.8870.95111.00831.07011.06131.0452
SGAI 0.9860.97590.98351.00561.01531.01341.01841.00611.01181.0175
LVGI 1.42481.18581.3341.33240.85850.87380.840.84270.87310.8846
TATA 0.0174-0.02-0.0101-0.0328-0.0249-0.0245-0.032-0.039-0.0396-0.0283
M-score -2.13-2.15-2.23-2.48-2.50-2.50-2.60-2.61-2.62-2.51
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