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Vulcan Materials Co (NYSE:VMC)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

VMC' s 10-Year Beneish M-Score Range
Min: -3.17   Max: -1.81
Current: -2.59

-3.17
-1.81

During the past 13 years, the highest Beneish M-Score of Vulcan Materials Co was -1.81. The lowest was -3.17. And the median was -2.67.


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 * 0.9812+0.528 * 0.804+0.404 * 1.0073+0.892 * 1.0938+0.115 * 0.9747
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9159+4.679 * -0.0318-0.327 * 0.8268
=-2.59

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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 $7,934 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 $2,006 Mil.
Net Income was 45.967 + 53.995 + 9.082 + 41.363 = $150 Mil.
Non Operating Income was 1.798 + 2.825 + -42.336 + 15.586 = $-22 Mil.
Cash Flow from Operations was 27.872 + -4.972 + 96.487 + 305.357 = $425 Mil.
Accounts Receivable was $405 Mil.
Revenue was 738.733 + 538.162 + 608.431 + 728.861 = $2,614 Mil.
Gross Profit was 132.895 + 17.655 + 79.206 + 126.923 = $357 Mil.
Total Current Assets was $912 Mil.
Total Assets was $8,120 Mil.
Property, Plant and Equipment(Net PPE) was $3,215 Mil.
Depreciation, Depletion and Amortization(DDA) was $315 Mil.
Selling, General & Admin. Expense(SGA) was $263 Mil.
Total Current Liabilities was $392 Mil.
Long-Term Debt was $2,524 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)
=(434.332 / 2859.377) / (404.682 / 2614.187)
=0.15189742 / 0.15480224
=0.9812

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)
=(34.092 / 2614.187) / (174.788 / 2859.377)
=0.13643974 / 0.16969081
=0.804

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 - (1101.984 + 2901.762) / 7933.898) / (1 - (911.649 + 3215.341) / 8120.224)
=0.49536205 / 0.49176402
=1.0073

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
=2859.377 / 2614.187
=1.0938

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))
=(314.852 / (314.852 + 3215.341)) / (292.253 / (292.253 + 2901.762))
=0.08918832 / 0.0915002
=0.9747

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)
=(263.604 / 2859.377) / (263.126 / 2614.187)
=0.09218931 / 0.10065309
=0.9159

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)
=((2006.379 + 349.405) / 7933.898) / ((2524.42 + 391.769) / 8120.224)
=0.29692643 / 0.35912667
=0.8268

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
=(150.407 - -22.127 - 424.744) / 7933.898
=-0.0318

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 -2.59 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 0.92191.43390.71181.08240.77121.0191.24670.98870.88041.0796
GMI 0.84980.97020.87760.97581.39171.23871.41041.06170.85080.8445
AQI 1.01621.17861.05261.93470.93151.05831.02811.01711.02150.9872
SGI 0.84861.17971.15440.99561.09730.73680.95111.00221.00111.0792
DEPI 0.92841.1361.12821.53830.81490.92610.97130.99451.00751.1194
SGAI 1.11030.99630.95271.10021.07811.27411.20160.78731.04210.7946
LVGI 0.88930.89370.94741.90620.94290.81371.03041.04490.97190.937
TATA -0.0888-0.0326-0.049-0.0342-0.0311-0.0502-0.0363-0.0291-0.0366-0.0411
M-score -3.17-1.97-2.84-2.45-2.59-2.78-2.29-2.56-2.83-2.55

Vulcan Materials Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.11750.96760.91070.88041.02981.03381.06831.07960.98980.9812
GMI 0.95760.88220.80230.85080.93320.89470.8880.84450.81250.804
AQI 1.01191.02511.0261.02151.02611.01830.99760.98721.01131.0073
SGI 1.02371.03451.01471.00110.98331.00341.04871.07921.09241.0938
DEPI 0.99130.99281.00161.00751.04211.07671.09521.11940.97940.9747
SGAI 0.78320.84130.87851.04211.03380.85830.8220.79460.81740.9159
LVGI 1.04491.00531.01220.97190.96680.93410.90290.9370.80430.8268
TATA -0.0273-0.0291-0.0282-0.0366-0.0319-0.026-0.0489-0.0373-0.0264-0.0318
M-score -2.47-2.64-2.76-2.83-2.63-2.56-2.59-2.53-2.53-2.59
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