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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 Beneish M-Score Range Over the Past 10 Years
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 * 1.0136+0.528 * 0.7872+0.404 * 0.972+0.892 * 1.1372+0.115 * 1.0479
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9327+4.679 * -0.0263-0.327 * 0.9879
=-2.57

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $553 Mil.
Revenue was 1038.46 + 895.143 + 631.293 + 755.027 = $3,320 Mil.
Gross Profit was 291.29 + 234.449 + 77.865 + 169.66 = $773 Mil.
Total Current Assets was $1,144 Mil.
Total Assets was $8,317 Mil.
Property, Plant and Equipment(Net PPE) was $3,120 Mil.
Depreciation, Depletion and Amortization(DDA) was $275 Mil.
Selling, General & Admin. Expense(SGA) was $280 Mil.
Total Current Liabilities was $412 Mil.
Long-Term Debt was $1,979 Mil.
Net Income was 123.805 + 48.162 + -39.678 + 38.021 = $170 Mil.
Non Operating Income was -2.818 + -0.439 + 0.979 + -0.923 = $-3 Mil.
Cash Flow from Operations was 216.7 + 45.483 + 19.154 + 110.61 = $392 Mil.
Accounts Receivable was $480 Mil.
Revenue was 873.579 + 791.143 + 574.42 + 680.246 = $2,919 Mil.
Gross Profit was 209.042 + 174.788 + 34.092 + 117.347 = $535 Mil.
Total Current Assets was $955 Mil.
Total Assets was $8,070 Mil.
Property, Plant and Equipment(Net PPE) was $3,069 Mil.
Depreciation, Depletion and Amortization(DDA) was $285 Mil.
Selling, General & Admin. Expense(SGA) was $264 Mil.
Total Current Liabilities was $365 Mil.
Long-Term Debt was $1,984 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)
=(552.985 / 3319.923) / (479.748 / 2919.388)
=0.16656561 / 0.1643317
=1.0136

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)
=(234.449 / 2919.388) / (291.29 / 3319.923)
=0.18334973 / 0.23291625
=0.7872

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 - (1143.69 + 3119.627) / 8316.866) / (1 - (954.618 + 3068.57) / 8069.645)
=0.487389 / 0.50144176
=0.972

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
=3319.923 / 2919.388
=1.1372

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))
=(285.089 / (285.089 + 3068.57)) / (275.409 / (275.409 + 3119.627))
=0.08500834 / 0.08112108
=1.0479

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)
=(279.83 / 3319.923) / (263.824 / 2919.388)
=0.0842881 / 0.09036963
=0.9327

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)
=((1979.493 + 412.077) / 8316.866) / ((1984.075 + 364.812) / 8069.645)
=0.28755663 / 0.29107687
=0.9879

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
=(170.31 - -3.201 - 391.947) / 8316.866
=-0.0263

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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.71181.08240.70471.11511.24670.93930.92671.07961.01571.0304
GMI 0.87810.97571.39171.23871.41041.06170.85080.84450.78510.7831
AQI 1.05631.92780.93181.05961.02651.01711.02150.98721.04350.969
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 0.93931.92270.94260.81471.02941.04490.97190.9370.83780.9823
TATA -0.0482-0.0342-0.0482-0.0502-0.0363-0.0291-0.0366-0.0411-0.0073-0.0338
M-score -2.84-2.46-2.73-2.69-2.26-2.63-2.76-2.57-2.46-2.59

Vulcan Materials Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.06831.07960.98980.98120.99611.01570.97711.02331.01361.0304
GMI 0.8880.84450.81250.8040.78560.78510.76320.77480.78720.7831
AQI 0.99760.98721.01131.00431.04321.04350.97791.00250.9720.969
SGI 1.04871.07921.09241.09381.08171.08071.0871.10341.13721.1429
DEPI 1.09391.12050.98050.97581.0331.01741.14361.1211.04791.0413
SGAI 1.08360.62150.63440.69380.69890.97120.96250.94380.93270.9217
LVGI 0.90290.9370.80430.82110.83930.83781.05040.99320.98790.9823
TATA -0.0554-0.0411-0.0304-0.0359-0.0095-0.0073-0.0209-0.0229-0.0263-0.0338
M-score -2.66-2.52-2.52-2.57-2.44-2.46-2.65-2.57-2.57-2.59
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