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 |
Jan13 |
Jan14 |
Jan15 |
Jan16 |
Jan17 |
Jan18 |
Jan19 |
Jan20 |
Jan21 |
Jan22 |
| Beneish M-Score |
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|
|
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-2.53 |
-3.15 |
-2.55 |
-2.79 |
-2.63 |
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Lowe's Quarterly Data
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Jul17 |
Oct17 |
Jan18 |
Apr18 |
Jul18 |
Oct18 |
Jan19 |
Apr19 |
Jul19 |
Oct19 |
Jan20 |
Apr20 |
Jul20 |
Oct20 |
Jan21 |
Apr21 |
Jul21 |
Oct21 |
Jan22 |
Apr22 |
| Beneish M-Score |
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|
|
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|
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-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.
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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.
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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 / 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.
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