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Macy's Beneish M-Score

: -2.47 (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 -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

M' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Med: -2.69   Max: -0.95
Current: -2.47

During the past 13 years, the highest Beneish M-Score of Macy's was -0.95. The lowest was -3.51. And the median was -2.69.


Macy's Beneish M-Score Historical Data

The historical data trend for Macy'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.

Macy'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 -2.90 -2.56 -2.67 -3.17 -2.74

Macy'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 -2.53 -2.65 -2.47 -2.74 -2.47

Competitive Comparison

For the Department Stores subindustry, Macy'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.

   

Macy's Beneish M-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Macy's's Beneish M-Score distribution charts can be found below:

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



Macy'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 Macy'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 * 0.8673+0.528 * 0.8771+0.404 * 1.168+0.892 * 1.3105+0.115 * 1.0586
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9024+4.679 * -0.0416-0.327 * 0.9306
=-2.47

* 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 $233 Mil.
Revenue was 5539 + 8930 + 5653 + 5844 = $25,966 Mil.
Gross Profit was 2308 + 3423 + 2446 + 2491 = $10,668 Mil.
Total Current Assets was $6,233 Mil.
Total Assets was $16,972 Mil.
Property, Plant and Equipment(Net PPE) was $8,337 Mil.
Depreciation, Depletion and Amortization(DDA) was $856 Mil.
Selling, General, & Admin. Expense(SGA) was $8,179 Mil.
Total Current Liabilities was $5,543 Mil.
Long-Term Debt & Capital Lease Obligation was $6,024 Mil.
Net Income was 286 + 743 + 239 + 345 = $1,613 Mil.
Non Operating Income was 10 + 32 + -126 + -63 = $-147 Mil.
Cash Flow from Operations was 248 + 1871 + -124 + 471 = $2,466 Mil.
Total Receivables was $205 Mil.
Revenue was 4865 + 7037 + 4185 + 3727 = $19,814 Mil.
Gross Profit was 1976 + 2539 + 1616 + 1009 = $7,140 Mil.
Total Current Assets was $7,240 Mil.
Total Assets was $18,082 Mil.
Property, Plant and Equipment(Net PPE) was $8,651 Mil.
Depreciation, Depletion and Amortization(DDA) was $946 Mil.
Selling, General, & Admin. Expense(SGA) was $6,916 Mil.
Total Current Liabilities was $5,518 Mil.
Long-Term Debt & Capital Lease Obligation was $7,724 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)
=(233 / 25966) / (205 / 19814)
=0.00897327 / 0.01034622
=0.8673

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)
=(7140 / 19814) / (10668 / 25966)
=0.36035127 / 0.41084495
=0.8771

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 - (6233 + 8337) / 16972) / (1 - (7240 + 8651) / 18082)
=0.14152722 / 0.12117022
=1.168

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
=25966 / 19814
=1.3105

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))
=(946 / (946 + 8651)) / (856 / (856 + 8337))
=0.09857247 / 0.09311433
=1.0586

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)
=(8179 / 25966) / (6916 / 19814)
=0.31498883 / 0.34904613
=0.9024

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)
=((6024 + 5543) / 16972) / ((7724 + 5518) / 18082)
=0.68153429 / 0.73233049
=0.9306

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
=(1613 - -147 - 2466) / 16972
=-0.0416

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.

Macy's has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.


Macy's Business Description

Macy's logo
Address
151 West 34th Street, New York, NY, USA, 10001
Founded in 1858 and based in New York City, Macy's operates 570 stores under the Macy's nameplate, 58 stores under the Bloomingdale's nameplate, and 160 freestanding Bluemercury specialty beauty stores (as of the end of fiscal-year 2021). Macy's also operates e-commerce sites and licenses two Bloomingdale's stores in the United Arab Emirates and Kuwait. Women's apparel, accessories, shoes, cosmetics, and fragrances comprised 59% of Macy's 2021 sales.
Executives
Granoff Jill director LIZ CLAIBORNE, INC. 1441 BROADWAY NEW YORK NY 10018
Chandoha Marie A director C/O THE CHARLES SCHWAB CORPORATION 211 MAIN STREET SAN FRANCISCO CA 94105
Zhen Tracey director C/O MACY'S, INC. 145 PROGRESS PLACE SPRINGDALE OH 45246
Buchanan Ashley director C/O THE MICHAELS COMPANIES, INC. 8000 BENT BRANCH DRIVE IRVING TX 75063
Mitchell Adrian V officer: Chief Financial Officer C/O MACY'S, INC. 151 WEST 34TH STREET NEW YORK NY 10001
Griscom Paul officer: Interim Principal Acctg. Offr. C/O MACY'S, INC. 145 PROGRESS PLACE SPRINGDALE OH 45246
Harper John T. officer: Chief Operations Officer C/O MACY'S, INC. 151 WEST 34TH STREET NEW YORK NY 10001
Boone Torrence director 3308 N MITTHOEFFER INDIANAPOLIS IN 46235
Abney David P director 55 GLENLAKE PARWAY, NE ATLANTA GA 30328
Price Paula A officer: Chief Financial Officer ONE CVS DRIVE WOONSOCKET RI 02895
Kirgan Danielle L. officer: Chief Human Resources Officer C/O MACY'S, INC. 151 WEST 34TH STREET NEW YORK NY 10001
Lawton Iii Harry A officer: President C/O EBAY INC. 2065 SAN JOSE CA 95125
Spring Antony officer: Chairman & CEO, Bloomingdale's C/O MACY'S, INC. 7 WEST SEVENTH STREET CINCINNATI OH 45202
Lennox Richard A officer: Chief Marketing Officer C/O MACYS, INC. 7 WEST SEVENTH STREET CINCINNATI OH 45202
Garcia C Elisa D officer: Chief Legal Officer 151 WEST 34TH STREET NEW YORK NY 10001

Macy's Headlines

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