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Capri Holdings (NYSE:CPRI) Beneish M-Score

: -2.75 (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 -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CPRI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.43   Med: -2.31   Max: -1.58
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Capri Holdings was -1.58. The lowest was -3.43. And the median was -2.31.


Capri Holdings Beneish M-Score Historical Data

The historical data trend for Capri Holdings'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.

Capri Holdings Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.17 -2.85 -2.29 -2.13 -2.68

Capri Holdings Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.31 -2.04 -2.55 -2.68 -2.75

Competitive Comparison

For the Luxury Goods subindustry, Capri Holdings'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.

   

Capri Holdings Beneish M-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Capri Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Capri Holdings's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



Capri Holdings 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 Capri Holdings 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 * 0.819+0.528 * 0.993+0.404 * 1.0003+0.892 * 0.9526+0.115 * 1.0745
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1161+4.679 * -0.004454-0.327 * 1.0881
=-2.75

* 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.

This Year (Jun23) TTM:Last Year (Jun22) TTM:
Total Receivables was $323 Mil.
Revenue was 1229 + 1335 + 1512 + 1412 = $5,488 Mil.
Gross Profit was 812 + 867 + 1005 + 951 = $3,635 Mil.
Total Current Assets was $1,920 Mil.
Total Assets was $7,409 Mil.
Property, Plant and Equipment(Net PPE) was $1,910 Mil.
Depreciation, Depletion and Amortization(DDA) was $179 Mil.
Selling, General, & Admin. Expense(SGA) was $2,775 Mil.
Total Current Liabilities was $1,448 Mil.
Long-Term Debt & Capital Lease Obligation was $3,278 Mil.
Net Income was 48 + -34 + 225 + 224 = $463 Mil.
Non Operating Income was -20 + -154 + -2 + -2 = $-178 Mil.
Cash Flow from Operations was 40 + 155 + 577 + -98 = $674 Mil.
Total Receivables was $414 Mil.
Revenue was 1360 + 1492 + 1609 + 1300 = $5,761 Mil.
Gross Profit was 901 + 956 + 1048 + 884 = $3,789 Mil.
Total Current Assets was $2,081 Mil.
Total Assets was $7,610 Mil.
Property, Plant and Equipment(Net PPE) was $1,854 Mil.
Depreciation, Depletion and Amortization(DDA) was $188 Mil.
Selling, General, & Admin. Expense(SGA) was $2,610 Mil.
Total Current Liabilities was $1,614 Mil.
Long-Term Debt & Capital Lease Obligation was $2,847 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)
=(323 / 5488) / (414 / 5761)
=0.058856 / 0.071863
=0.819

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)
=(3789 / 5761) / (3635 / 5488)
=0.657698 / 0.662354
=0.993

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 - (1920 + 1910) / 7409) / (1 - (2081 + 1854) / 7610)
=0.483061 / 0.482917
=1.0003

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
=5488 / 5761
=0.9526

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))
=(188 / (188 + 1854)) / (179 / (179 + 1910))
=0.092067 / 0.085687
=1.0745

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)
=(2775 / 5488) / (2610 / 5761)
=0.505649 / 0.453046
=1.1161

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)
=((3278 + 1448) / 7409) / ((2847 + 1614) / 7610)
=0.637873 / 0.586202
=1.0881

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
=(463 - -178 - 674) / 7409
=-0.004454

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.

Capri Holdings has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.


Capri Holdings Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Capri Holdings's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Capri Holdings (NYSE:CPRI) Business Description

Capri Holdings logo
Traded in Other Exchanges
Address
90 Whitfield Street, 2nd Floor, London, GBR, W1T 4EZ
Michael Kors, Versace, and Jimmy Choo are the brands of Capri Holdings, a marketer, distributor, and retailer of upscale accessories and apparel. Michael Kors, Capri's largest brand, offers handbags, footwear, and apparel through more than 800 company-owned stores, wholesale, and e-commerce. Versace (acquired in 2018) is known for its ready-to-wear luxury fashion, while Jimmy Choo (acquired in 2017) is best known for women's luxury footwear. John Idol has served as CEO since 2003.
Executives
Cedric Wilmotte officer: CEO - Michael Kors C/O CAPRI HOLDINGS LIMITED, 90 WHITFIELD STREET, 2ND FLOOR, LONDON X0 W1T 4EZ
Mahesh Madhavan director C/O CAPRI HOLDINGS LIMITED, 90 WHITFIELD STREET, 2ND FLOOR, LONDON X0 W1T 4EZ
Joshua Schulman officer: CEO - Michael Kors 603 WEST 50TH STREET, NEW YORK X1 10019
Marilyn C Crouther director 1902 RESTON METRO PLAZA, RESTON VA 20190
Jenna Hendricks officer: SVP, Chief People Officer 33 KINGSWAY, LONDON X0 WC2B 6UF
Daniel Purefoy officer: SVP, Global Ops 33 KINGSWAY, LONDON X0 WC2B 6UF
Ann Mclaughlin Korologos director PO BOX 3599, BATTLECREEK MI 49016-3599
Freestone Robin Anthony David director 33 KINGSWAY, LONDON X0 WC2B 6UF
Jean Tomlin director C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
Thomas Jr. Edwards officer: EVP, CFO, COO & Treasurer 6820 LBJ FREEWAY, DALLAS TX 75240
Krista A Mcdonough officer: SVP, General Counsel 33 KINGSWAY, LONDON X0 WC2B 6UF
Cathy Marie Robinson officer: SVP, Corp Str & Ch Ops Off C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
Michael David Kors director, officer: Hon Chair & Chief Creative Off C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, ATTN. LEE SPORN, NEW YORK NY 10036
Jane A. Thompson director C/O MICHAEL KORS (USA), INC., 11 WEST 42ND STREET, NEW YORK NY 10036
John D Idol director, officer: Chairman & CEO 650 MADISON AVE, NEW YORK NY 10022