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Vulcan Materials Co (NYSE:VMC)
Beneish M-Score
-2.65 (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 -2.65 suggests that the company is not a manipulator.

VMC' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -1.81
Current: -2.65

-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 * 0.9771+0.528 * 0.7632+0.404 * 0.9779+0.892 * 1.087+0.115 * 1.1436
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9625+4.679 * -0.0209-0.327 * 1.0504
=-2.65

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $370 Mil.
Revenue was 631.293 + 755.027 + 873.579 + 791.143 = $3,051 Mil.
Gross Profit was 77.865 + 169.66 + 209.042 + 174.788 = $631 Mil.
Total Current Assets was $1,195 Mil.
Total Assets was $8,351 Mil.
Property, Plant and Equipment(Net PPE) was $3,084 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $273 Mil.
Total Current Liabilities was $703 Mil.
Long-Term Debt was $1,912 Mil.
Net Income was -39.678 + 38.021 + 66.939 + 45.967 = $111 Mil.
Non Operating Income was 0.979 + -0.923 + -0.593 + 1.798 = $1 Mil.
Cash Flow from Operations was 19.154 + 110.61 + 126.826 + 27.872 = $284 Mil.
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.



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)
=(369.952 / 3051.042) / (348.337 / 2806.967)
=0.12125431 / 0.12409729
=0.9771

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)
=(169.66 / 2806.967) / (77.865 / 3051.042)
=0.15793453 / 0.20693094
=0.7632

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 - (1194.665 + 3084.093) / 8350.615) / (1 - (1053.742 + 2893.29) / 7872.235)
=0.48761163 / 0.49861354
=0.9779

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
=3051.042 / 2806.967
=1.087

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))
=(300.889 / (300.889 + 2893.29)) / (276.842 / (276.842 + 3084.093))
=0.09419917 / 0.08237053
=1.1436

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)
=(272.932 / 3051.042) / (260.891 / 2806.967)
=0.08945534 / 0.09294409
=0.9625

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)
=((1912.455 + 703.336) / 8350.615) / ((2006.782 + 340.868) / 7872.235)
=0.31324531 / 0.29821899
=1.0504

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
=(111.249 - 1.261 - 284.462) / 8350.615
=-0.0209

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 -2.65 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.92671.02981.03381.06831.07960.98980.98120.99611.01570.9771
GMI 0.85080.93320.89470.8880.84450.81250.8040.78560.78510.7632
AQI 1.02151.02611.01830.99760.98721.01131.00731.0461.04350.9779
SGI 1.00110.98331.00341.04871.07921.09241.09381.08171.08071.087
DEPI 1.00581.04031.07491.09331.12050.98050.97581.0331.01741.1436
SGAI 1.32071.32021.11721.08360.62150.63440.69380.69890.97120.9625
LVGI 0.97190.96680.93410.90290.9370.80430.82680.84480.83781.0504
TATA -0.0427-0.0388-0.0329-0.0554-0.0411-0.0304-0.0358-0.0095-0.0073-0.0209
M-score -2.86-2.71-2.64-2.66-2.52-2.52-2.58-2.44-2.46-2.65
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