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PVH Beneish M-Score

: -2.54 (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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PVH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.4   Med: -2.53   Max: -0.59
Current: -2.54

During the past 13 years, the highest Beneish M-Score of PVH was -0.59. The lowest was -3.40. And the median was -2.53.


PVH Beneish M-Score Historical Data

The historical data trend for PVH'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.

PVH 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 -2.44 -2.38 -2.66 -2.98 -2.44

PVH 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 -2.15 -2.31 -2.55 -2.44 -2.54

Competitive Comparison

For the Apparel Manufacturing subindustry, PVH'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.

   

PVH Beneish M-Score Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, PVH's Beneish M-Score distribution charts can be found below:

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



PVH 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 PVH 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 * 0.8449+0.528 * 0.9513+0.404 * 0.9952+0.892 * 1.1691+0.115 * 0.9415
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9332+4.679 * -0.0153-0.327 * 0.9164
=-2.54

* 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 $873 Mil.
Revenue was 2122.7 + 2429.7 + 2332.5 + 2313.2 = $9,198 Mil.
Gross Profit was 1238.7 + 1416.3 + 1345.1 + 1333.6 = $5,334 Mil.
Total Current Assets was $3,365 Mil.
Total Assets was $11,889 Mil.
Property, Plant and Equipment(Net PPE) was $2,176 Mil.
Depreciation, Depletion and Amortization(DDA) was $313 Mil.
Selling, General, & Admin. Expense(SGA) was $4,454 Mil.
Total Current Liabilities was $2,429 Mil.
Long-Term Debt & Capital Lease Obligation was $3,388 Mil.
Net Income was 133.1 + 390.8 + 279.7 + 181.9 = $986 Mil.
Non Operating Income was 11 + 62.2 + 129.4 + 7.4 = $210 Mil.
Cash Flow from Operations was -303.4 + 488 + 251 + 521.3 = $957 Mil.
Total Receivables was $883 Mil.
Revenue was 2079.3 + 2089.8 + 2118.1 + 1580.7 = $7,868 Mil.
Gross Profit was 1229.1 + 1126.3 + 1101.3 + 883.3 = $4,340 Mil.
Total Current Assets was $3,483 Mil.
Total Assets was $12,702 Mil.
Property, Plant and Equipment(Net PPE) was $2,404 Mil.
Depreciation, Depletion and Amortization(DDA) was $322 Mil.
Selling, General, & Admin. Expense(SGA) was $4,083 Mil.
Total Current Liabilities was $2,389 Mil.
Long-Term Debt & Capital Lease Obligation was $4,393 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)
=(872.5 / 9198.1) / (883.3 / 7867.9)
=0.09485655 / 0.1122663
=0.8449

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)
=(4340 / 7867.9) / (5333.7 / 9198.1)
=0.55160843 / 0.57986976
=0.9513

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 - (3365 + 2175.8) / 11889.3) / (1 - (3483 + 2403.5) / 12701.6)
=0.53396752 / 0.53655445
=0.9952

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
=9198.1 / 7867.9
=1.1691

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))
=(322.3 / (322.3 + 2403.5)) / (312.5 / (312.5 + 2175.8))
=0.11824052 / 0.12558775
=0.9415

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)
=(4453.9 / 9198.1) / (4082.5 / 7867.9)
=0.48421957 / 0.51888051
=0.9332

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)
=((3388.2 + 2428.7) / 11889.3) / ((4392.6 + 2388.5) / 12701.6)
=0.48925504 / 0.53387762
=0.9164

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
=(985.5 - 210 - 956.9) / 11889.3
=-0.0153

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.

PVH has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.


PVH Business Description

PVH logo
Address
200 Madison Avenue, New York, NY, USA, 10016
PVH designs and markets branded apparel in more than 40 countries. Its key fashion categories include men's dress shirts, ties, sportswear, underwear, and jeans. PVH's leading designer brands, Calvin Klein and Tommy Hilfiger, generate nearly all its revenue after it disposed of most of its smaller brands in 2021. PVH distributes its clothing wholesale to retailers and through company-owned stores. The company traces its history to 1881 and is based in New York City.
Executives
Donnelly Trish officer: CEO, PVH Americas/CK Global C/O PVH CORP. 200 MADISON AVENUE NEW YORK NY 10016
Calbert Michael M director C/O DOLLAR GENERAL CORPORATION 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Fuller Julie officer: Chief People Officer 200 MADISON AVENUE NEW YORK NY 10016
Coughlin Zachary officer: EVP, Chief Financial Officer 285 MADISON AVENUE NEW YORK NY 10017
Perlman Dana officer: EVP & Chief Strategy Officer C/O 200 MADISON AVENUE NEW YORK NY 10016
Hagman Martijn officer: CEO, PVH Europe C/O PVH CORP. 200 MADISON AVENUE NEW YORK NY 10016
Larsson Stefan director, officer: Chief Executive Officer TWO FOLSOM STREET SAN FRANCISCO CA 94105
Fischer Mark D officer: EVP, General Counsel & Sec. C/O PHILLIPS-VAN HEUSEN CORPORATION 200 MADISON AVENUE NEW YORK NY 10016
Nasella Henry director
Holmes James officer: EVP, Interim CFO & Controller C/O PVH CORP. 200 MADISON AVENUE NEW YORK NY 10016
Shaffer Michael A officer: EVP, COO and CFO C/O PHILLIPS-VAN HEUSEN CORPORATION 200 MADISON AVENUE NEW YORK NY 10016
Chirico Emanuel director 7 NEW YORK PLACE BRONSVILLE NY 10708
Sourry Knox Judith Amanda director C/O 200 MADISON AVENUE NEW YORK NY 10016
Cheeks George director, Director 200 MADISON AVENUE NEW YORK NY 10016
Peterson Allison director 7601 PENN AVENUE SOUTH RICHFIELD MN 55423

PVH Headlines

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