Abercrombie & Fitch Co (BUE:ANF) Beneish M-Score

: -3.20 (As of Today)

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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 -3.2 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Abercrombie & Fitch Co's Beneish M-Score or its related term are showing as below:

BUE:ANF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.27 Med: -3.02 Max: -1.92
Current: -3.2

During the past 13 years, the highest Beneish M-Score of Abercrombie & Fitch Co was -1.92. The lowest was -3.27. And the median was -3.02.

Abercrombie & Fitch Co Beneish M-Score Historical Data

The historical data trend for Abercrombie & Fitch Co'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.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => -2.97 [6] => -3.27 [7] => -2.51 [8] => -1.92 [9] => -3.20 )

Abercrombie & Fitch Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Beneish M-Score

-2.97

-3.27

-2.51

-1.92

-3.20

Abercrombie & Fitch Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Beneish M-Score																-1.92	-2.59	-2.70	-3.27	-3.20

Competitive Comparison

For the Apparel Retail subindustry, Abercrombie & Fitch Co'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.

Abercrombie & Fitch Co Beneish M-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Abercrombie & Fitch Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Abercrombie & Fitch Co's Beneish M-Score falls into.

Abercrombie & Fitch Co 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 Abercrombie & Fitch Co 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 * 0.9455

0.528 * 0.902

0.404 * 0.9588

0.892 * 3.6246

0.115 * 1.4101

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9275

4.679 * -0.069664

0.327 * 0.8755

-0.48

This Year (Jan24) TTM:

Last Year (Jan23) TTM:

Total Receivables was ARS63,339 Mil.
Revenue was 1174602.641 + 369750.844 + 240103.072 + 147844.573 = ARS1,932,301 Mil.
Gross Profit was 738574.843 + 239984.146 + 150010.353 + 90156.48 = ARS1,218,726 Mil.
Total Current Assets was ARS1,242,802 Mil.
Total Assets was ARS2,404,519 Mil.
Property, Plant and Equipment(Net PPE) was ARS983,309 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS56,055 Mil.
Selling, General, & Admin. Expense(SGA) was ARS966,030 Mil.
Total Current Liabilities was ARS781,626 Mil.
Long-Term Debt & Capital Lease Obligation was ARS702,335 Mil.
Net Income was 128096.475 + 33673.849 + 14604.69 + 2930.562 = ARS179,306 Mil.
Non Operating Income was 0 + 0 + 0 + -784.501 = ARS-785 Mil.
Cash Flow from Operations was 245186.711 + 46834.899 + 55675.152 + -99.035 = ARS347,598 Mil.

Total Receivables was ARS18,482 Mil.
Revenue was 212185.72 + 129645.172 + 100958.413 + 90314.116 = ARS533,103 Mil.
Gross Profit was 118185.43 + 76721.404 + 58422.733 + 49953.553 = ARS303,283 Mil.
Total Current Assets was ARS217,174 Mil.
Total Assets was ARS479,809 Mil.
Property, Plant and Equipment(Net PPE) was ARS225,506 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS18,561 Mil.
Selling, General, & Admin. Expense(SGA) was ARS287,351 Mil.
Total Current Liabilities was ARS159,553 Mil.
Long-Term Debt & Capital Lease Obligation was ARS178,655 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)
	=	(63338.822 / 1932301.13)	/	(18481.765 / 533103.421)
	=	0.032779	/	0.034668
	=	0.9455

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)
	=	(303283.12 / 533103.421)	/	(1218725.822 / 1932301.13)
	=	0.568901	/	0.630712
	=	0.902

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 - (1242801.865 + 983308.822) / 2404518.621)	/	(1 - (217173.565 + 225506.152) / 479808.601)
	=	0.074197	/	0.077383
	=	0.9588

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
	=	1932301.13	/	533103.421
	=	3.6246

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))
	=	(18560.638 / (18560.638 + 225506.152))	/	(56054.683 / (56054.683 + 983308.822))
	=	0.076047	/	0.053932
	=	1.4101

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)
	=	(966029.995 / 1932301.13)	/	(287351.494 / 533103.421)
	=	0.499938	/	0.539016
	=	0.9275

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)
	=	((702335.264 + 781625.613) / 2404518.621)	/	((178655.002 + 159553.028) / 479808.601)
	=	0.617155	/	0.704881
	=	0.8755

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
	=	(179305.576 - -784.501	-	347597.727)	/	2404518.621
	=	-0.069664

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.

Abercrombie & Fitch Co has a M-score of -0.48 signals that the company is likely to be a manipulator.

Abercrombie & Fitch Co Beneish M-Score Related Terms

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Abercrombie & Fitch Co (BUE:ANF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Abercrombie & Fitch Co (BUE:ANF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ANF:USA AFT:Germany

Address

6301 Fitch Path, New Albany, OH, USA, 43054

Website

https://corporate.abercrombie.com

Abercrombie & Fitch Co is a specialty retailer that sells casual clothing, personal-care products, and accessories for men, women, and children. It sells direct to consumer through its stores and websites, which include the Abercrombie & Fitch, Abercrombie kids, and Hollister brands. Most stores are in the United States, but the company does have many stores in Canada, Europe, and Asia. All stores are leased. Abercrombie ships to well over 100 countries via its websites. The company sources its merchandise from dozens of vendors that are primarily located in Asia and Central America. Abercrombie has two distribution centers in Ohio to support its North American operations. It uses third-party distributors for sales in Europe and Asia.