Switch to:
GuruFocus has detected 3 Warning Signs with Abercrombie & Fitch Co $ANF.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Abercrombie & Fitch Co (NYSE:ANF)
Beneish M-Score
-2.41 (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.

Abercrombie & Fitch Co has a M-score of -2.41 suggests that the company is not a manipulator.

ANF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.85   Max: 20.74
Current: -2.41

-3.85
20.74

During the past 13 years, the highest Beneish M-Score of Abercrombie & Fitch Co was 20.74. The lowest was -3.85. And the median was -2.69.


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 Abercrombie & Fitch 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 * 1.5498+0.528 * 1.0252+0.404 * 1.0459+0.892 * 0.945+0.115 * 0.9949
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0372+4.679 * -0.09-0.327 * 0.9762
=-2.41

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Apr17) TTM:Last Year (Apr16) TTM:
Accounts Receivable was $90 Mil.
Revenue was 661.099 + 1036.363 + 821.734 + 783.16 = $3,302 Mil.
Gross Profit was 398.925 + 615.001 + 510.739 + 477.107 = $2,002 Mil.
Total Current Assets was $1,002 Mil.
Total Assets was $2,158 Mil.
Property, Plant and Equipment(Net PPE) was $806 Mil.
Depreciation, Depletion and Amortization(DDA) was $193 Mil.
Selling, General & Admin. Expense(SGA) was $2,018 Mil.
Total Current Liabilities was $421 Mil.
Long-Term Debt was $310 Mil.
Net Income was -61.7 + 48.791 + 7.881 + -13.129 = $-18 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -84.262 + 163.213 + 79.237 + 17.849 = $176 Mil.
Accounts Receivable was $62 Mil.
Revenue was 685.483 + 1112.93 + 878.572 + 817.756 = $3,495 Mil.
Gross Profit was 425.721 + 676.345 + 559.787 + 509.862 = $2,172 Mil.
Total Current Assets was $1,095 Mil.
Total Assets was $2,344 Mil.
Property, Plant and Equipment(Net PPE) was $886 Mil.
Depreciation, Depletion and Amortization(DDA) was $211 Mil.
Selling, General & Admin. Expense(SGA) was $2,059 Mil.
Total Current Liabilities was $478 Mil.
Long-Term Debt was $337 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)
=(90.346 / 3302.356) / (61.69 / 3494.741)
=0.02735804 / 0.01765224
=1.5498

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)
=(2171.715 / 3494.741) / (2001.772 / 3302.356)
=0.62142373 / 0.60616481
=1.0252

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 - (1002.102 + 806.057) / 2157.965) / (1 - (1094.528 + 886.346) / 2344.182)
=0.16209994 / 0.15498285
=1.0459

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
=3302.356 / 3494.741
=0.945

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))
=(211.255 / (211.255 + 886.346)) / (193.337 / (193.337 + 806.057))
=0.19246976 / 0.19345423
=0.9949

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)
=(2017.919 / 3302.356) / (2058.929 / 3494.741)
=0.61105435 / 0.58915067
=1.0372

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)
=((310.473 + 421.232) / 2157.965) / ((336.615 + 477.645) / 2344.182)
=0.33907176 / 0.34735358
=0.9762

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
=(-18.157 - 0 - 176.037) / 2157.965
=-0.09

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.

Abercrombie & Fitch Co has a M-score of -2.41 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 local exchange's currency.

Abercrombie & Fitch Co Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
DSRI 1.1011.06252.03540.69480.99681.02780.74750.8561.14361.7369
GMI 0.9941.0011.04031.00611.04230.98220.99821.01241.00781.0056
AQI 1.49873.12080.91441.00950.94951.071.12611.06420.99290.9769
SGI 1.13010.92910.84061.18441.19871.08480.91270.90940.93980.9455
DEPI 0.92860.71990.86170.97241.01661.11310.85010.90730.98371.0069
SGAI 1.01061.11191.14940.94440.94621.00231.06670.99491.02111.0358
LVGI 0.93130.91260.95571.14431.15081.03991.03981.25781.08010.9707
TATA -0.1332-0.0767-0.14-0.0803-0.071-0.1486-0.0424-0.104-0.1128-0.0787
M-score -2.68-2.01-2.37-3.01-2.67-3.06-2.98-3.24-2.96-2.22

Abercrombie & Fitch Co Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
DSRI 0.8560.95481.08881.06251.14361.08331.12111.18761.73691.5498
GMI 1.01241.01371.00610.99641.00780.9810.98670.99921.00561.0252
AQI 1.06421.02071.01451.00590.99290.99511.07651.0120.97691.0459
SGI 0.90940.88550.87950.89850.93980.96250.97240.96540.94550.945
DEPI 0.90730.9170.94470.95720.98370.98020.9550.96291.00690.9949
SGAI 0.99491.01321.02911.04411.02111.00911.00521.00711.03581.0372
LVGI 1.25781.30231.25441.1711.08011.05630.99980.94290.97070.9762
TATA -0.104-0.1043-0.1311-0.1303-0.1128-0.1147-0.0969-0.1078-0.0787-0.09
M-score -3.24-3.21-3.20-3.19-2.96-3.01-2.83-2.83-2.22-2.41
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK