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Toll Brothers Beneish M-Score

: -2.96 (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 -2.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TOL' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Med: -2.06   Max: 10000000
Current: -2.96

During the past 13 years, the highest Beneish M-Score of Toll Brothers was 10000000.00. The lowest was -10000000.00. And the median was -2.06.


Toll Brothers Beneish M-Score Historical Data

The historical data trend for Toll Brothers'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.

Toll Brothers Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.77 -2.60 -2.40 -2.72 -3.11

Toll Brothers 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 -2.77 -2.81 -3.11 -2.78 -2.96

Competitive Comparison

For the Residential Construction subindustry, Toll Brothers'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.

   

Toll Brothers Beneish M-Score Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Beneish M-Score distribution charts can be found below:

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



Toll Brothers 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 Toll Brothers 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 * 0.3834+0.528 * 0.9024+0.404 * 1.0137+0.892 * 1.2178+0.115 * 1.0169
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9089+4.679 * -0.0182-0.327 * 0.9685
=-2.96

* 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 $94 Mil.
Revenue was 2277.541 + 1791.081 + 3041.38 + 2255.481 = $9,365 Mil.
Gross Profit was 525.295 + 401.937 + 698.863 + 510.648 = $2,137 Mil.
Total Current Assets was $9,994 Mil.
Total Assets was $11,545 Mil.
Property, Plant and Equipment(Net PPE) was $412 Mil.
Depreciation, Depletion and Amortization(DDA) was $77 Mil.
Selling, General, & Admin. Expense(SGA) was $963 Mil.
Total Current Liabilities was $2,456 Mil.
Long-Term Debt & Capital Lease Obligation was $3,428 Mil.
Net Income was 220.593 + 151.904 + 374.33 + 234.932 = $982 Mil.
Non Operating Income was 14.157 + 24.191 + 57.015 + 25.914 = $121 Mil.
Cash Flow from Operations was 75.726 + -280.698 + 854.699 + 421.161 = $1,071 Mil.
Total Receivables was $201 Mil.
Revenue was 1930.124 + 1563.376 + 2545.667 + 1651.489 = $7,691 Mil.
Gross Profit was 403.54 + 329.849 + 506.877 + 343.122 = $1,583 Mil.
Total Current Assets was $9,529 Mil.
Total Assets was $10,975 Mil.
Property, Plant and Equipment(Net PPE) was $378 Mil.
Depreciation, Depletion and Amortization(DDA) was $72 Mil.
Selling, General, & Admin. Expense(SGA) was $870 Mil.
Total Current Liabilities was $2,070 Mil.
Long-Term Debt & Capital Lease Obligation was $3,705 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)
=(93.656 / 9365.483) / (200.579 / 7690.656)
=0.01000012 / 0.02608087
=0.3834

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)
=(1583.388 / 7690.656) / (2136.743 / 9365.483)
=0.20588465 / 0.22815086
=0.9024

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 - (9994.477 + 411.561) / 11544.611) / (1 - (9529.231 + 377.975) / 10975.019)
=0.09862376 / 0.09729487
=1.0137

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
=9365.483 / 7690.656
=1.2178

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))
=(71.769 / (71.769 + 377.975)) / (76.605 / (76.605 + 411.561))
=0.15957745 / 0.15692408
=1.0169

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)
=(962.621 / 9365.483) / (869.692 / 7690.656)
=0.10278391 / 0.11308424
=0.9089

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)
=((3427.589 + 2455.829) / 11544.611) / ((3704.675 + 2070.457) / 10975.019)
=0.50962462 / 0.52620702
=0.9685

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
=(981.759 - 121.277 - 1070.888) / 11544.611
=-0.0182

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.

Toll Brothers has a M-score of -2.96 suggests that the company is unlikely to be a manipulator.


Toll Brothers Beneish M-Score Related Terms

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Toll Brothers Business Description

Toll Brothers logo
Traded in Other Exchanges
Address
1140 Virginia Drive, Fort Washington, PA, USA, 19034
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in 60 markets across 24 states and caters to move-up, active-adult, and second-home buyers. Traditional homebuilding operations represent most of company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the U.S. It has its headquarters in Horsham, Pennsylvania.
Executives
Kan Derek T. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Stowell Scott D director
East Stephen F. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Parahus Robert officer: EVP,Co-Chief Operating Officer TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Boyd James W. officer: EVP,Co-Chief Operating Officer TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Mcdonald John K. officer: SVP, General Counsel TOLL BROTHERS, INC. 250 GIBRALTAR ROAD HORSHAM PA 19044
Grimes Karen H. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Pritchett Wendell E. director TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Grubb Michael J. officer: Chief Accounting Officer TOLL BROTHERS, INC. 1140 VIRGINIA DRIVE FORT WASHINGTON PA 19034
Mclean John A director TOLL BROTHERS, INC. 1140 GIBRALTAR ROAD FORT WASHINGTON PA 19034
Hartman Richard T. officer: Chief Operating Officer 250 GIBRALTAR ROAD HORSHAM PA 19044
Connor Martin P. officer: Chief Financial Officer 250 GIBRALTAR ROAD HORSHAM PA 19044
Yearley Douglas C. Jr. officer: Executive Vice President 250 GIBRALTAR ROAD HORSHAM PA 19044
Garvey Christine director 14100 E 35TH PLACE AURORA CO 80011
Boehne Edward G director 313 DEVON STATE ST DEVON PA 19333

Toll Brothers Headlines

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