Market Cap : 129 B | Enterprise Value : 157.05 B | PE Ratio : 16.43 | PB Ratio : |
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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:
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.
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.
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.
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.
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.
Thank you for viewing the detailed overview of Lowe's's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
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