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Lowe's Beneish M-Score

: -2.63 (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 -2.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LOW' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Med: -2.71   Max: -1.4
Current: -2.63

During the past 13 years, the highest Beneish M-Score of Lowe's was -1.40. The lowest was -3.63. And the median was -2.71.


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.

* Premium members only.

Lowe's Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.53 -3.15 -2.55 -2.79 -2.63

Lowe's Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 -2.62 -2.21 -2.46 -2.63 -2.63

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 * 0.9872+0.404 * 0.7821+0.892 * 1.0121+0.115 * 0.8692
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9506+4.679 * -0.0029-0.327 * 1.1553
=-2.63

* 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 (Apr22) TTM:Last Year (Apr21) TTM:
Total Receivables was $0 Mil.
Revenue was 23659 + 21339 + 22918 + 27570 = $95,486 Mil.
Gross Profit was 8050 + 7027 + 7587 + 9312 = $31,976 Mil.
Total Current Assets was $25,611 Mil.
Total Assets was $49,725 Mil.
Property, Plant and Equipment(Net PPE) was $23,021 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,942 Mil.
Selling, General, & Admin. Expense(SGA) was $18,111 Mil.
Total Current Liabilities was $21,831 Mil.
Long-Term Debt & Capital Lease Obligation was $32,837 Mil.
Net Income was 2333 + 1207 + 1896 + 3018 = $8,454 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 2977 + 934 + 2266 + 2421 = $8,598 Mil.
Total Receivables was $0 Mil.
Revenue was 24422 + 20311 + 22309 + 27302 = $94,344 Mil.
Gross Profit was 8130 + 6456 + 7300 + 9304 = $31,190 Mil.
Total Current Assets was $26,816 Mil.
Total Assets was $51,200 Mil.
Property, Plant and Equipment(Net PPE) was $22,945 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,664 Mil.
Selling, General, & Admin. Expense(SGA) was $18,825 Mil.
Total Current Liabilities was $22,892 Mil.
Long-Term Debt & Capital Lease Obligation was $25,831 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)
=(0 / 95486) / (0 / 94344)
=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)
=(31190 / 94344) / (31976 / 95486)
=0.33059866 / 0.33487632
=0.9872

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 - (25611 + 23021) / 49725) / (1 - (26816 + 22945) / 51200)
=0.02198089 / 0.02810547
=0.7821

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
=95486 / 94344
=1.0121

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))
=(1664 / (1664 + 22945)) / (1942 / (1942 + 23021))
=0.06761754 / 0.07779514
=0.8692

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)
=(18111 / 95486) / (18825 / 94344)
=0.18967178 / 0.19953574
=0.9506

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)
=((32837 + 21831) / 49725) / ((25831 + 22892) / 51200)
=1.09940674 / 0.95162109
=1.1553

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
=(8454 - 0 - 8598) / 49725
=-0.0029

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 -2.63 suggests that the company is unlikely to be a manipulator.


Lowe's Business Description

Lowe's logo
Address
1000 Lowe's Boulevard, Mooresville, NC, USA, 28117
Lowe's is the second- largest home improvement retailer in the world (behind wide-moat Home Depot), operating 1,971 stores and servicing 230 dealer-owned stores throughout the United States and Canada. The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling. Lowe's targets retail do-it-yourself and do-it-for-me customers as well as commercial business clients. We estimate Lowe's captures a low-double-digit share of the $900 billion domestic home improvement market, based on Lowe's estimate for market size.
Executives
Taylor Colleen director C/O BILL.COM HOLDINGS, INC. 1800 EMBARCADERO ROAD PALO ALTO CA 94303
Sink Brandon J officer: EVP, Chief Financial Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Stone West Mary E director C/O HASBRO, INC. 1011 NEWPORT AVENUE PAWTUCKET RI 02861
Heinrich Daniel J director CLOROX CO 1221 BROADWAY OAKLAND CA 94612
Griggs Dan Clayton Jr officer: Vice President, CAO 1000 LOWES BOULEVARD MOORESVILLE NC 28117
Little Janice Dupre officer: EVP Human Resources 1000 LOWES BOULEVARD MOORESVILLE NC 28117
Thalberg Marisa F officer: EVP Chief Brand & Mktg Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Denton David M officer: EVP, Chief Financial Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Godbole Seemantini officer: EVP, Chief Information Officer 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Mason Tiffany L officer: Interim CFO & SVP 440 S. CHURCH STREET SUITE 700 CHARLOTTE NC 28202
Boltz William P officer: EVP, Merchandising 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Mcfarland Joseph Michael officer: EVP, Stores 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Frieson Donald officer: EVP, Supply Chain 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Ellison Marvin R director, officer: President and CEO 1000 LOWE'S BOULEVARD MOORESVILLE NC 28117
Rogers Brian C director T ROWE PRICE GROUP INC 100 E PRATT ST BALTIMORE MD 21202

Lowe's Headlines

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