Lowe's Beneish M-Score Historical Data
The historical data trend for Lowe's'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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Lowe's Annual Data
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Trend |
Jan15 |
Jan16 |
Jan17 |
Jan18 |
Jan19 |
Jan20 |
Jan21 |
Jan22 |
Jan23 |
Jan24 |
| Beneish M-Score |
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|
|
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-2.55 |
-2.79 |
-2.63 |
-2.86 |
-2.53 |
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Lowe's Quarterly Data
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Apr19 |
Jul19 |
Oct19 |
Jan20 |
Apr20 |
Jul20 |
Oct20 |
Jan21 |
Apr21 |
Jul21 |
Oct21 |
Jan22 |
Apr22 |
Jul22 |
Oct22 |
Jan23 |
Apr23 |
Jul23 |
Oct23 |
Jan24 |
| Beneish M-Score |
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|
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|
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-2.86 |
-2.65 |
-2.78 |
-2.40 |
-2.53 |
Competitive Comparison
For the Home Improvement Retail subindustry, Lowe's'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.
Lowe's Beneish M-Score Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Lowe's's Beneish M-Score falls into.
Lowe's 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 Lowe's 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 * 0.9953 | + | 0.404 * 1.1848 | + | 0.892 * 0.8899 | + | 0.115 * 1.041 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8603 | + | 4.679 * -0.009905 | - | 0.327 * 1.0231 |
| = | -2.53 |
* 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 (Jan24) TTM: | Last Year (Jan23) TTM: |
Total Receivables was $0 Mil.
Revenue was 18602 + 20471 + 24956 + 22347 = $86,376 Mil.
Gross Profit was 6027 + 6891 + 8399 + 7527 = $28,844 Mil.
Total Current Assets was $19,071 Mil.
Total Assets was $41,795 Mil.
Property, Plant and Equipment(Net PPE) was $21,386 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,923 Mil.
Selling, General, & Admin. Expense(SGA) was $15,568 Mil.
Total Current Liabilities was $15,568 Mil.
Long-Term Debt & Capital Lease Obligation was $39,121 Mil.
Net Income was 1020 + 1773 + 2673 + 2260 = $7,726 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1108 + 1064 + 3862 + 2106 = $8,140 Mil.
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Total Receivables was $0 Mil.
Revenue was 22445 + 23479 + 27476 + 23659 = $97,059 Mil.
Gross Profit was 7257 + 7818 + 9133 + 8050 = $32,258 Mil.
Total Current Assets was $21,442 Mil.
Total Assets was $43,708 Mil.
Property, Plant and Equipment(Net PPE) was $21,085 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,981 Mil.
Selling, General, & Admin. Expense(SGA) was $20,333 Mil.
Total Current Liabilities was $19,511 Mil.
Long-Term Debt & Capital Lease Obligation was $36,388 Mil.
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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) |
| = | (0 / 86376) | / | (0 / 97059) |
| = | 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) |
| = | (32258 / 97059) | / | (28844 / 86376) |
| = | 0.332355 | / | 0.333935 |
| | = | 0.9953 |
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 - (19071 + 21386) / 41795) | / | (1 - (21442 + 21085) / 43708) |
| = | 0.032013 | / | 0.02702 |
| | = | 1.1848 |
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 |
| = | 86376 | / | 97059 |
| | = | 0.8899 |
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)) |
| = | (1981 / (1981 + 21085)) | / | (1923 / (1923 + 21386)) |
| = | 0.085884 | / | 0.0825 |
| | = | 1.041 |
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) |
| = | (15568 / 86376) | / | (20333 / 97059) |
| = | 0.180235 | / | 0.209491 |
| | = | 0.8603 |
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) |
| = | ((39121 + 15568) / 41795) | / | ((36388 + 19511) / 43708) |
| = | 1.308506 | / | 1.278919 |
| | = | 1.0231 |
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 |
| = | (7726 - 0 | - | 8140) | / | 41795 |
| | = | -0.009905 |
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.
Lowe's has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.
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