Ralph Lauren (BSP:R1LC34) Beneish M-Score : -2.69 (As of Dec. 14, 2024)

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What is Ralph Lauren Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Ralph Lauren's Beneish M-Score or its related term are showing as below:

BSP:R1LC34' s Beneish M-Score Range Over the Past 10 Years
Min: -3.29 Med: -2.71 Max: -1.62
Current: -2.69

During the past 13 years, the highest Beneish M-Score of Ralph Lauren was -1.62. The lowest was -3.29. And the median was -2.71.

Ralph Lauren Beneish M-Score Historical Data

The historical data trend for Ralph Lauren's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Ralph Lauren Beneish M-Score Chart

Ralph Lauren Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-3.08

-2.15

-2.46

-2.24

-2.77

Ralph Lauren Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.64	-2.75	-2.77	-2.70	-2.69

Competitive Comparison of Ralph Lauren's Beneish M-Score

For the Apparel Manufacturing subindustry, Ralph Lauren's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ralph Lauren's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ralph Lauren's Beneish M-Score falls into.

Ralph Lauren Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Ralph Lauren for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.157

0.528 * 0.9649

0.404 * 0.9775

0.892 * 1.0613

0.115 * 1.0504

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.016

4.679 * -0.049572

0.327 * 0.9899

-2.53

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was R$3,565 Mil.
Revenue was 9558.243 + 8144.86 + 7807.828 + 9476.213 = R$34,987 Mil.
Gross Profit was 6400.035 + 5740.505 + 5197.417 + 6301.143 = R$23,639 Mil.
Total Current Assets was R$19,962 Mil.
Total Assets was R$37,657 Mil.
Property, Plant and Equipment(Net PPE) was R$10,223 Mil.
Depreciation, Depletion and Amortization(DDA) was R$1,157 Mil.
Selling, General, & Admin. Expense(SGA) was R$19,242 Mil.
Total Current Liabilities was R$11,587 Mil.
Long-Term Debt & Capital Lease Obligation was R$11,122 Mil.
Net Income was 819.041 + 908.096 + 451.668 + 1355.285 = R$3,534 Mil.
Non Operating Income was -32.673 + -45.782 + -149.394 + 29.399 = R$-198 Mil.
Cash Flow from Operations was 538.274 + 1493.566 + 602.556 + 2964.869 = R$5,599 Mil.

Total Receivables was R$2,903 Mil.
Revenue was 8064.897 + 7263.562 + 8025.411 + 9611.146 = R$32,965 Mil.
Gross Profit was 5284.903 + 5009.018 + 4951.295 + 6245.698 = R$21,491 Mil.
Total Current Assets was R$16,764 Mil.
Total Assets was R$33,203 Mil.
Property, Plant and Equipment(Net PPE) was R$9,699 Mil.
Depreciation, Depletion and Amortization(DDA) was R$1,159 Mil.
Selling, General, & Admin. Expense(SGA) was R$17,845 Mil.
Total Current Liabilities was R$7,953 Mil.
Long-Term Debt & Capital Lease Obligation was R$12,275 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(3564.682 / 34987.144)	/	(2902.968 / 32965.016)
	=	0.101885	/	0.088062
	=	1.157

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)
	=	(21490.914 / 32965.016)	/	(23639.1 / 34987.144)
	=	0.651931	/	0.675651
	=	0.9649

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (19961.554 + 10222.779) / 37657.04)	/	(1 - (16764.417 + 9698.619) / 33203.374)
	=	0.198441	/	0.203002
	=	0.9775

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	34987.144	/	32965.016
	=	1.0613

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(1159.363 / (1159.363 + 9698.619))	/	(1156.805 / (1156.805 + 10222.779))
	=	0.106775	/	0.101656
	=	1.0504

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(19242.01 / 34987.144)	/	(17844.57 / 32965.016)
	=	0.549974	/	0.541318
	=	1.016

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((11121.564 + 11587.293) / 37657.04)	/	((12274.645 + 7953.282) / 33203.374)
	=	0.603044	/	0.609213
	=	0.9899

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
	=	(3534.09 - -198.45	-	5599.265)	/	37657.04
	=	-0.049572

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Ralph Lauren has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.

Ralph Lauren Beneish M-Score Related Terms

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Ralph Lauren Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Ralph Lauren Corp (BSP:R1LC34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RL:USA RL:Mexico 0KTS:UK PRL:Germany PRL:Germany

Address

650 Madison Avenue, New York, NY, USA, 10022

Website

https://www.ralphlauren.com

Founded by designer Ralph Lauren in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle merchandise in North America, Europe, and Asia. Best known for its iconic polo shirts, its products also include other types of apparel, footwear, eyewear, jewelry, handbags, home goods, and fragrances. The company's brands include Ralph Lauren Collection, Polo Ralph Lauren, and Lauren Ralph Lauren. Distribution channels for Ralph Lauren include wholesale (department stores and specialty stores), retail (company-owned retail stores and e-commerce), and licensing.

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