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Vulcan Materials Co (NYSE:VMC)
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.

Vulcan Materials Co has a M-score of -2.57 suggests that the company is not a manipulator.

VMC' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -1.81
Current: -2.57

-3.12
-1.81

During the past 13 years, the highest Beneish M-Score of Vulcan Materials Co was -1.81. The lowest was -3.12. And the median was -2.66.


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 Vulcan Materials Co 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 * 1.0233+0.528 * 0.7748+0.404 * 1.0025+0.892 * 1.1034+0.115 * 1.121
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9438+4.679 * -0.0229-0.327 * 0.9932
=-2.57

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $490 Mil.
Revenue was 895.143 + 631.293 + 755.027 + 873.579 = $3,155 Mil.
Gross Profit was 234.449 + 77.865 + 169.66 + 209.042 = $691 Mil.
Total Current Assets was $1,022 Mil.
Total Assets was $8,196 Mil.
Property, Plant and Equipment(Net PPE) was $3,116 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $275 Mil.
Total Current Liabilities was $507 Mil.
Long-Term Debt was $1,894 Mil.
Net Income was 48.162 + -39.678 + 38.021 + 66.939 = $113 Mil.
Non Operating Income was -0.439 + 0.979 + -0.923 + -0.593 = $-1 Mil.
Cash Flow from Operations was 45.483 + 19.154 + 110.61 + 126.826 = $302 Mil.
Accounts Receivable was $434 Mil.
Revenue was 791.143 + 574.42 + 680.246 + 813.568 = $2,859 Mil.
Gross Profit was 174.788 + 34.092 + 117.347 + 158.983 = $485 Mil.
Total Current Assets was $1,102 Mil.
Total Assets was $7,911 Mil.
Property, Plant and Equipment(Net PPE) was $2,902 Mil.
Depreciation, Depletion and Amortization(DDA) was $292 Mil.
Selling, General & Admin. Expense(SGA) was $264 Mil.
Total Current Liabilities was $349 Mil.
Long-Term Debt was $1,983 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)
=(490.411 / 3155.042) / (434.332 / 2859.377)
=0.15543723 / 0.15189742
=1.0233

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)
=(77.865 / 2859.377) / (234.449 / 3155.042)
=0.16969081 / 0.21901959
=0.7748

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 - (1022.2 + 3115.524) / 8195.883) / (1 - (1101.984 + 2901.762) / 7910.838)
=0.49514604 / 0.49389104
=1.0025

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
=3155.042 / 2859.377
=1.1034

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))
=(292.253 / (292.253 + 2901.762)) / (276.903 / (276.903 + 3115.524))
=0.0915002 / 0.08162386
=1.121

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)
=(274.514 / 3155.042) / (263.604 / 2859.377)
=0.08700803 / 0.09218931
=0.9438

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)
=((1893.737 + 506.64) / 8195.883) / ((1983.319 + 349.405) / 7910.838)
=0.29287595 / 0.29487698
=0.9932

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
=(113.444 - -0.976 - 302.073) / 8195.883
=-0.0229

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.

Vulcan Materials Co 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.

Vulcan Materials Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.43390.71181.08240.70471.11511.24670.93930.92671.07961.0157
GMI 0.96970.87810.97571.39171.23871.41041.06170.85080.84450.7851
AQI 1.17861.05631.92780.93181.05961.02651.01711.02150.98721.0435
SGI 1.17971.15440.99561.09730.73680.95111.00221.00111.07921.0807
DEPI 1.12751.12931.54860.81490.92610.97170.99461.00581.12051.0174
SGAI 0.96320.9851.10071.07811.27411.07080.89021.03410.79460.9712
LVGI 0.89370.93931.92270.94260.81471.02941.04490.97190.9370.8378
TATA -0.0304-0.0482-0.0342-0.0482-0.0502-0.0363-0.0291-0.0366-0.0411-0.0073
M-score -1.95-2.84-2.46-2.73-2.69-2.26-2.63-2.78-2.55-2.46

Vulcan Materials Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.02981.03381.06831.07960.98980.98120.99611.01570.97711.0233
GMI 0.93320.89470.8880.84450.81250.8040.78560.78510.76320.7748
AQI 1.02611.01830.99760.98721.01131.00431.0461.04350.97791.0025
SGI 0.98331.00341.04871.07921.09241.09381.08171.08071.0871.1034
DEPI 1.04031.07491.09331.12050.98050.97581.0331.01741.14361.121
SGAI 1.32021.11721.08360.62150.63440.69380.69890.97120.96250.9438
LVGI 0.96680.93410.90290.9370.80430.82110.84480.83781.05040.9932
TATA -0.0388-0.0329-0.0554-0.0411-0.0304-0.0359-0.0095-0.0073-0.0209-0.0229
M-score -2.71-2.64-2.66-2.52-2.52-2.57-2.44-2.46-2.65-2.57
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