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Vulcan Materials Co (NYSE:VMC)
Beneish M-Score
-2.44 (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 -2.44 suggests that the company is not a manipulator.

VMC' s 10-Year Beneish M-Score Range
Min: -3.12   Max: -1.81
Current: -2.44

-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 -2.68.


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 * 0.9961+0.528 * 0.7856+0.404 * 1.046+0.892 * 1.0817+0.115 * 1.033
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6989+4.679 * -0.0095-0.327 * 0.8448
=-2.44

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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 $8,092 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 $2,006 Mil.
Net Income was 66.939 + 45.967 + 53.995 + 9.082 = $176 Mil.
Non Operating Income was -0.593 + 1.798 + 2.825 + 2.57 = $7 Mil.
Cash Flow from Operations was 126.826 + 27.872 + -4.972 + 96.487 = $246 Mil.
Accounts Receivable was $445 Mil.
Revenue was 813.568 + 738.733 + 538.162 + 608.431 = $2,699 Mil.
Gross Profit was 158.983 + 132.895 + 17.655 + 79.206 = $389 Mil.
Total Current Assets was $1,101 Mil.
Total Assets was $8,310 Mil.
Property, Plant and Equipment(Net PPE) was $3,214 Mil.
Depreciation, Depletion and Amortization(DDA) was $309 Mil.
Selling, General & Admin. Expense(SGA) was $349 Mil.
Total Current Liabilities was $359 Mil.
Long-Term Debt was $2,523 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)
=(479.748 / 2919.388) / (445.23 / 2698.894)
=0.1643317 / 0.16496758
=0.9961

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)
=(174.788 / 2698.894) / (209.042 / 2919.388)
=0.14403641 / 0.18334973
=0.7856

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 - (954.618 + 3068.57) / 8091.538) / (1 - (1100.961 + 3214.46) / 8310.056)
=0.50279069 / 0.48069893
=1.046

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
=2919.388 / 2698.894
=1.0817

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))
=(309.445 / (309.445 + 3214.46)) / (285.089 / (285.089 + 3068.57))
=0.08781309 / 0.08500834
=1.033

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)
=(263.824 / 2919.388) / (348.995 / 2698.894)
=0.09036963 / 0.12931038
=0.6989

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)
=((2005.968 + 364.812) / 8091.538) / ((2523.389 + 358.643) / 8310.056)
=0.29299498 / 0.34681258
=0.8448

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
=(175.983 - 6.6 - 246.213) / 8091.538
=-0.0095

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 -2.44 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 0.73621.43390.71181.08240.70471.11511.24670.93930.92671.0796
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 -3.05-1.95-2.84-2.46-2.73-2.69-2.26-2.63-2.78-2.55

Vulcan Materials Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.96760.91070.92671.02981.03381.06831.07960.98980.98120.9961
GMI 0.88220.80230.85080.93320.89470.8880.84450.81250.8040.7856
AQI 1.02511.0261.02151.02611.01830.99760.98721.01131.00731.046
SGI 1.03451.01471.00110.98331.00341.04871.07921.09241.09381.0817
DEPI 0.99291.00171.00581.04031.07491.09331.12050.98050.97581.033
SGAI 0.96871.01321.32071.32021.11721.08360.62150.63440.69380.6989
LVGI 1.00531.01220.97190.96680.93410.90290.9370.80430.82680.8448
TATA -0.0284-0.026-0.0427-0.0388-0.0329-0.0554-0.0411-0.0304-0.0358-0.0095
M-score -2.66-2.77-2.86-2.71-2.64-2.66-2.52-2.52-2.58-2.44
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