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Vulcan Materials Co (NYSE:VMC)
Beneish M-Score
-2.63 (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 -2.63 suggests that the company is not a manipulator.

VMC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08   Max: -1.94
Current: -2.63

-3.08
-1.94

During the past 13 years, the highest Beneish M-Score of Vulcan Materials Co was -1.94. The lowest was -3.08. And the median was -2.68.


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 * 0.9783+0.528 * 0.7831+0.404 * 0.9714+0.892 * 1.1429+0.115 * 1.0413
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9217+4.679 * -0.0338-0.327 * 0.9887
=-2.63

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $418 Mil.
Revenue was 857.285 + 1038.46 + 895.143 + 631.293 = $3,422 Mil.
Gross Profit was 253.929 + 291.29 + 234.449 + 77.865 = $858 Mil.
Total Current Assets was $1,085 Mil.
Total Assets was $8,302 Mil.
Property, Plant and Equipment(Net PPE) was $3,156 Mil.
Depreciation, Depletion and Amortization(DDA) was $275 Mil.
Selling, General & Admin. Expense(SGA) was $287 Mil.
Total Current Liabilities was $353 Mil.
Long-Term Debt was $1,980 Mil.
Net Income was 88.888 + 123.805 + 48.162 + -39.678 = $221 Mil.
Non Operating Income was 0.599 + -2.818 + -0.439 + 0.979 = $-2 Mil.
Cash Flow from Operations was 222.041 + 216.7 + 45.483 + 19.154 = $503 Mil.
Accounts Receivable was $374 Mil.
Revenue was 755.027 + 873.579 + 791.143 + 574.42 = $2,994 Mil.
Gross Profit was 169.66 + 209.042 + 174.788 + 34.092 = $588 Mil.
Total Current Assets was $920 Mil.
Total Assets was $8,041 Mil.
Property, Plant and Equipment(Net PPE) was $3,072 Mil.
Depreciation, Depletion and Amortization(DDA) was $279 Mil.
Selling, General & Admin. Expense(SGA) was $272 Mil.
Total Current Liabilities was $452 Mil.
Long-Term Debt was $1,835 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)
=(418.024 / 3422.181) / (373.842 / 2994.169)
=0.12215134 / 0.12485668
=0.9783

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)
=(291.29 / 2994.169) / (253.929 / 3422.181)
=0.1962421 / 0.25058084
=0.7831

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 - (1084.591 + 3156.29) / 8301.632) / (1 - (920.469 + 3071.63) / 8041.097)
=0.48915093 / 0.50353801
=0.9714

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
=3422.181 / 2994.169
=1.1429

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))
=(279.497 / (279.497 + 3071.63)) / (274.823 / (274.823 + 3156.29))
=0.08340388 / 0.08009733
=1.0413

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)
=(286.844 / 3422.181) / (272.288 / 2994.169)
=0.08381906 / 0.09093942
=0.9217

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)
=((1980.334 + 353.479) / 8301.632) / ((1834.642 + 451.878) / 8041.097)
=0.28112701 / 0.28435424
=0.9887

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
=(221.177 - -1.679 - 503.378) / 8301.632
=-0.0338

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 -2.63 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.71181.08240.70471.11511.24670.93930.92671.07961.06980.9783
GMI 0.87810.97571.39171.23871.41041.06170.85080.84450.78510.7831
AQI 1.05631.92780.93181.05961.02651.01711.02150.98721.04080.9714
SGI 1.15440.99561.09730.73680.95111.00221.00111.07921.08071.1429
DEPI 1.12931.54860.81490.92610.97170.9941.00641.12051.01741.0413
SGAI 0.9851.10071.07811.27411.07080.89020.88580.92760.97120.9217
LVGI 0.93931.92270.94260.81471.02941.04490.97190.9370.83240.9887
TATA -0.0402-0.0282-0.0482-0.0502-0.0363-0.0291-0.0366-0.0411-0.0073-0.0338
M-score -2.80-2.43-2.73-2.69-2.26-2.63-2.76-2.57-2.41-2.63

Vulcan Materials Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.07960.98980.98120.99611.06980.97711.02331.01360.97831.0322
GMI 0.84450.81250.8040.78560.78510.76320.77480.78720.78310.7769
AQI 0.98721.01131.00431.04321.04080.97791.00250.9720.97141.0051
SGI 1.07921.09241.09381.08171.08071.0871.10341.13721.14291.1621
DEPI 1.12050.98050.97581.0331.01741.14361.1211.04791.04131.0316
SGAI 0.70.71710.79280.79810.97120.96250.94380.93270.92170.935
LVGI 0.9370.80430.82110.83930.83241.05040.99320.98790.98870.905
TATA -0.0411-0.0304-0.0359-0.0095-0.0073-0.0209-0.0229-0.0263-0.0338-0.0296
M-score -2.53-2.53-2.59-2.46-2.41-2.65-2.57-2.57-2.63-2.51
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