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Vulcan Materials Co (NYSE:VMC)
Beneish M-Score
-2.60 (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 -2.60 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: -2.6

-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 * 0.9502+0.528 * 0.7884+0.404 * 0.9865+0.892 * 1.1433+0.115 * 1.0161
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9878+4.679 * -0.0221-0.327 * 0.9536
=-2.60

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $533 Mil.
Revenue was 956.825 + 754.728 + 857.285 + 1038.46 = $3,607 Mil.
Gross Profit was 292.184 + 164.718 + 253.929 + 291.29 = $1,002 Mil.
Total Current Assets was $1,023 Mil.
Total Assets was $8,290 Mil.
Property, Plant and Equipment(Net PPE) was $3,217 Mil.
Depreciation, Depletion and Amortization(DDA) was $281 Mil.
Selling, General & Admin. Expense(SGA) was $310 Mil.
Total Current Liabilities was $333 Mil.
Long-Term Debt was $1,983 Mil.
Net Income was 123.75 + 18.924 + 88.888 + 123.805 = $355 Mil.
Non Operating Income was 0.029 + -0.694 + 0.599 + -2.818 = $-3 Mil.
Cash Flow from Operations was 59.676 + 42.857 + 222.041 + 216.7 = $541 Mil.
Accounts Receivable was $490 Mil.
Revenue was 895.143 + 631.293 + 755.027 + 873.579 = $3,155 Mil.
Gross Profit was 234.449 + 77.865 + 169.66 + 209.042 = $691 Mil.
Total Current Assets was $1,022 Mil.
Total Assets was $8,196 Mil.
Property, Plant and Equipment(Net PPE) was $3,116 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $275 Mil.
Total Current Liabilities was $507 Mil.
Long-Term Debt was $1,894 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)
=(532.795 / 3607.298) / (490.411 / 3155.042)
=0.14769919 / 0.15543723
=0.9502

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)
=(691.016 / 3155.042) / (1002.121 / 3607.298)
=0.21901959 / 0.27780377
=0.7884

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 - (1023.407 + 3217.371) / 8290.113) / (1 - (1022.2 + 3115.524) / 8195.883)
=0.48845353 / 0.49514604
=0.9865

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
=3607.298 / 3155.042
=1.1433

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))
=(276.903 / (276.903 + 3115.524)) / (281.029 / (281.029 + 3217.371))
=0.08162386 / 0.08033072
=1.0161

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)
=(310.033 / 3607.298) / (274.514 / 3155.042)
=0.08594605 / 0.08700803
=0.9878

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)
=((1982.527 + 332.678) / 8290.113) / ((1893.737 + 506.64) / 8195.883)
=0.27927303 / 0.29287595
=0.9536

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
=(355.367 - -2.884 - 541.274) / 8290.113
=-0.0221

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 -2.60 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 0.71181.08240.70471.11511.24670.93930.92671.13391.01860.9783
GMI 0.87810.97571.39171.23871.41041.06170.85080.84450.78510.7831
AQI 1.05631.92780.93181.05961.02631.01731.02150.98721.04080.9714
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 0.93931.92270.94260.81471.0351.03930.97190.9370.83240.9887
TATA -0.0402-0.0282-0.0482-0.0502-0.0362-0.0291-0.0366-0.0411-0.0073-0.0338
M-score -2.80-2.43-2.73-2.69-2.27-2.63-2.76-2.52-2.46-2.63

Vulcan Materials Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.98980.98120.99611.01860.97711.02331.01360.97831.03220.9502
GMI 0.81250.8040.78560.78510.76320.77480.78720.78310.77690.7884
AQI 1.01131.00431.04321.04080.9751.00250.9720.97141.00810.9865
SGI 1.09241.09381.08171.08071.0871.10341.13721.14291.16211.1433
DEPI 0.98050.97581.0331.01741.14361.1211.04791.04131.03161.0161
SGAI 0.71710.79280.79810.97120.96250.94380.93270.92170.9350.9878
LVGI 0.80430.82110.83930.83241.04370.99320.98790.98870.91080.9536
TATA -0.0304-0.0359-0.0095-0.0073-0.021-0.0229-0.0263-0.0338-0.0296-0.0221
M-score -2.53-2.59-2.46-2.46-2.65-2.57-2.57-2.63-2.51-2.60
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