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Foot Locker Beneish M-Score

: -2.59 (As of Today)
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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.

Foot Locker has a M-score of -2.59 suggests that the company is not a manipulator.

NYSE:FL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.91   Med: -2.71   Max: -2.08
Current: -2.59

-3.91
-2.08

During the past 13 years, the highest Beneish M-Score of Foot Locker was -2.08. The lowest was -3.91. And the median was -2.71.


Foot Locker Beneish M-Score Historical Data

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

* Premium members only.

Foot Locker Annual Data
Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.48 -2.64 -2.92 -3.05 -2.82

Foot Locker Quarterly Data
Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20
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 -3.11 -2.98 -3.03 -2.82 -2.59

Competitive Comparison
* 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.


Foot Locker Beneish M-Score Distribution

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



Foot Locker 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 Foot Locker 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+0.528 * 1.0669+0.404 * 0.9441+0.892 * 0.8888+0.115 * 0.9299
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0514+4.679 * 0.0018-0.327 * 1.0528
=-2.59

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

This Year (Apr20) TTM:Last Year (Apr19) TTM:
Accounts Receivable was $0 Mil.
Revenue was 1176 + 2221 + 1932 + 1774 = $7,103 Mil.
Gross Profit was 271 + 700 + 620 + 534 = $2,125 Mil.
Total Current Assets was $2,738 Mil.
Total Assets was $6,796 Mil.
Property, Plant and Equipment(Net PPE) was $3,594 Mil.
Depreciation, Depletion and Amortization(DDA) was $179 Mil.
Selling, General, & Admin. Expense(SGA) was $1,554 Mil.
Total Current Liabilities was $1,643 Mil.
Long-Term Debt & Capital Lease Obligation was $2,712 Mil.
Net Income was -110 + 134 + 125 + 60 = $209 Mil.
Non Operating Income was -15 + -41 + 3 + -12 = $-65 Mil.
Cash Flow from Operations was -116 + 299 + 69 + 10 = $262 Mil.
Accounts Receivable was $0 Mil.
Revenue was 2078 + 2272 + 1860 + 1782 = $7,992 Mil.
Gross Profit was 689 + 735 + 588 + 539 = $2,551 Mil.
Total Current Assets was $2,592 Mil.
Total Assets was $6,928 Mil.
Property, Plant and Equipment(Net PPE) was $3,835 Mil.
(DDA) was $177 Mil.
Selling, General, & Admin. Expense(SGA) was $1,663 Mil.
Total Current Liabilities was $1,290 Mil.
Long-Term Debt & Capital Lease Obligation was $2,927 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(0 / 7103) / (0 / 7992)
=0 / 0
=1

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)
=(2551 / 7992) / (2125 / 7103)
=0.31919419 / 0.29916937
=1.0669

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 - (2738 + 3594) / 6796) / (1 - (2592 + 3835) / 6928)
=0.06827546 / 0.07231524
=0.9441

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
=7103 / 7992
=0.8888

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))
=(177 / (177 + 3835)) / (179 / (179 + 3594))
=0.04411765 / 0.04744235
=0.9299

6. SGAI = Sales, General and Administrative expenses Index

The ratio of c 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)
=(1554 / 7103) / (1663 / 7992)
=0.2187808 / 0.20808308
=1.0514

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)
=((2712 + 1643) / 6796) / ((2927 + 1290) / 6928)
=0.64081813 / 0.60868938
=1.0528

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
=(209 - -65 - 262) / 6796
=0.0018

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.

Foot Locker has a M-score of -2.59 suggests that the company will not be a manipulator.


Foot Locker Beneish M-Score Headlines

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