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Vulcan Materials Co (NYSE:VMC)
Beneish M-Score
-2.51 (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 -2.51 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: -2.51

-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 * 1.0322+0.528 * 0.7769+0.404 * 1.0081+0.892 * 1.1621+0.115 * 1.0316
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.935+4.679 * -0.0296-0.327 * 0.9108
=-2.51

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $444 Mil.
Revenue was 754.728 + 857.285 + 1038.46 + 895.143 = $3,546 Mil.
Gross Profit was 164.718 + 253.929 + 291.29 + 234.449 = $944 Mil.
Total Current Assets was $1,008 Mil.
Total Assets was $8,247 Mil.
Property, Plant and Equipment(Net PPE) was $3,198 Mil.
Depreciation, Depletion and Amortization(DDA) was $278 Mil.
Selling, General & Admin. Expense(SGA) was $297 Mil.
Total Current Liabilities was $356 Mil.
Long-Term Debt was $1,981 Mil.
Net Income was 18.924 + 88.888 + 123.805 + 48.162 = $280 Mil.
Non Operating Income was -0.694 + 0.599 + -2.818 + -0.439 = $-3 Mil.
Cash Flow from Operations was 42.857 + 222.041 + 216.7 + 45.483 = $527 Mil.
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 $8,327 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 $1,888 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)
=(443.763 / 3545.616) / (369.952 / 3051.042)
=0.12515822 / 0.12125431
=1.0322

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)
=(631.355 / 3051.042) / (944.386 / 3545.616)
=0.20693094 / 0.26635315
=0.7769

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 - (1007.503 + 3197.827) / 8247.025) / (1 - (1194.665 + 3084.093) / 8326.525)
=0.49007915 / 0.48612921
=1.0081

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
=3545.616 / 3051.042
=1.1621

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))
=(276.842 / (276.842 + 3084.093)) / (277.506 / (277.506 + 3197.827))
=0.08237053 / 0.07985019
=1.0316

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)
=(296.549 / 3545.616) / (272.932 / 3051.042)
=0.08363822 / 0.08945534
=0.935

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)
=((1981.425 + 356.485) / 8247.025) / ((1888.365 + 703.336) / 8326.525)
=0.28348526 / 0.31125842
=0.9108

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
=(279.779 - -3.352 - 527.081) / 8247.025
=-0.0296

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 -2.51 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 0.87760.97581.39171.23871.41041.06170.85080.84450.78510.7831
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 1.12821.53830.81490.92610.97130.99451.00751.11941.01741.0413
SGAI 0.95271.10021.07811.27411.20160.78731.04210.79460.97120.9217
LVGI 0.93931.92270.94260.81471.0351.03930.97190.9370.83240.9887
TATA -0.0409-0.0282-0.0488-0.0502-0.0362-0.0291-0.0366-0.0411-0.0073-0.0338
M-score -2.80-2.44-2.73-2.69-2.29-2.61-2.78-2.50-2.46-2.63

Vulcan Materials Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.13390.98980.98120.99611.01860.97711.02331.01360.97831.0322
GMI 0.84450.81250.8040.78560.78510.76320.77480.78720.78310.7769
AQI 0.98721.01131.00431.04321.04080.9751.00250.9720.97141.0081
SGI 1.07921.09241.09381.08171.08071.0871.10341.13721.14291.1621
DEPI 1.12050.98050.97581.0331.01741.14361.1211.04791.04131.0316
SGAI 0.70.71710.79280.79810.97120.96250.94380.93270.92170.935
LVGI 0.9370.80430.82110.83930.83241.04370.99320.98790.98870.9108
TATA -0.0411-0.0304-0.0359-0.0095-0.0073-0.021-0.0229-0.0263-0.0338-0.0296
M-score -2.48-2.53-2.59-2.46-2.46-2.65-2.57-2.57-2.63-2.51
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