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Vulcan Materials Co (NYSE:VMC)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

VMC' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -1.81
Current: -2.5

-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 -2.70.


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 * 0.9898+0.528 * 0.8125+0.404 * 1.0113+0.892 * 1.0924+0.115 * 0.9805
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6344+4.679 * -0.0264-0.327 * 0.8043
=-2.50

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $348 Mil.
Revenue was 574.42 + 680.246 + 813.568 + 738.733 = $2,807 Mil.
Gross Profit was 34.092 + 117.347 + 158.983 + 132.895 = $443 Mil.
Total Current Assets was $1,054 Mil.
Total Assets was $7,872 Mil.
Property, Plant and Equipment(Net PPE) was $2,893 Mil.
Depreciation, Depletion and Amortization(DDA) was $301 Mil.
Selling, General & Admin. Expense(SGA) was $261 Mil.
Total Current Liabilities was $341 Mil.
Long-Term Debt was $2,007 Mil.
Net Income was 53.995 + 9.082 + 41.363 + 28.772 = $133 Mil.
Non Operating Income was 2.825 + -42.336 + 15.586 + 0.286 = $-24 Mil.
Cash Flow from Operations was -4.972 + 96.487 + 305.357 + -32.478 = $364 Mil.
Accounts Receivable was $322 Mil.
Revenue was 538.162 + 608.431 + 728.861 + 694.136 = $2,570 Mil.
Gross Profit was 17.655 + 79.206 + 126.923 + 105.939 = $330 Mil.
Total Current Assets was $927 Mil.
Total Assets was $8,078 Mil.
Property, Plant and Equipment(Net PPE) was $3,168 Mil.
Depreciation, Depletion and Amortization(DDA) was $322 Mil.
Selling, General & Admin. Expense(SGA) was $376 Mil.
Total Current Liabilities was $470 Mil.
Long-Term Debt was $2,525 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)
=(348.337 / 2806.967) / (322.172 / 2569.59)
=0.12409729 / 0.12537876
=0.9898

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)
=(117.347 / 2569.59) / (34.092 / 2806.967)
=0.12831736 / 0.15793453
=0.8125

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 - (1053.742 + 2893.29) / 7872.235) / (1 - (927.362 + 3168.175) / 8078.475)
=0.49861354 / 0.49303092
=1.0113

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
=2806.967 / 2569.59
=1.0924

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))
=(322.389 / (322.389 + 3168.175)) / (300.889 / (300.889 + 2893.29))
=0.09236015 / 0.09419917
=0.9805

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)
=(260.891 / 2806.967) / (376.448 / 2569.59)
=0.09294409 / 0.14650119
=0.6344

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)
=((2006.782 + 340.868) / 7872.235) / ((2525.42 + 469.853) / 8078.475)
=0.29821899 / 0.37077208
=0.8043

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
=(133.212 - -23.639 - 364.394) / 7872.235
=-0.0264

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 -2.50 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.73621.43390.71181.08240.77121.0191.24670.93930.92671.0796
GMI 1.01350.96970.87810.97571.39171.23871.41041.06170.85080.8445
AQI 1.01621.17861.05631.92780.93181.05961.02651.01711.02150.9872
SGI 1.06261.17971.15440.99561.09730.73680.95111.00221.00111.0792
DEPI 0.92841.12751.12931.54860.81490.92610.97170.99461.00581.1205
SGAI 1.07660.96320.9851.10071.07811.27411.07080.89021.03410.7946
LVGI 0.88930.89370.93931.92270.94260.81471.02941.04490.97190.937
TATA -0.0888-0.0304-0.0482-0.0342-0.0482-0.0502-0.0363-0.0291-0.0366-0.0411
M-score -3.05-1.95-2.84-2.46-2.67-2.78-2.26-2.63-2.78-2.55

Vulcan Materials Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.93931.11750.96760.91070.92671.02981.03381.06831.07960.9898
GMI 1.06170.95760.88220.80230.85080.93320.89470.8880.84450.8125
AQI 1.01711.01191.02511.0261.02151.02611.01950.99760.98721.0113
SGI 1.00221.02371.03451.01471.00110.98331.00341.04871.07921.0924
DEPI 0.99460.99140.99291.00171.00581.04031.07351.09331.12050.9805
SGAI 0.89110.88930.96871.01321.32071.32021.11721.08360.62150.6344
LVGI 1.04491.04491.00531.01220.97190.96680.93410.90290.9370.8043
TATA -0.0291-0.0265-0.0284-0.026-0.0427-0.0388-0.0329-0.057-0.0373-0.0264
M-score -2.63-2.49-2.66-2.77-2.86-2.71-2.64-2.67-2.50-2.50
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