Wayfair Beneish M-Score Historical Data
The historical data trend for Wayfair'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.
Wayfair Beneish M-Score Chart
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Wayfair Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.03 |
-3.90 |
-2.33 |
-3.24 |
-4.11 |
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Wayfair Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-3.24 |
-3.88 |
-4.12 |
-4.64 |
-4.11 |
Competitive Comparison of Wayfair's Beneish M-Score
For the Internet Retail subindustry, Wayfair'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.
Wayfair's Beneish M-Score Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Wayfair's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Wayfair's Beneish M-Score falls into.
Wayfair 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 Wayfair 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 * 0.6985 | + | 0.528 * 0.9152 | + | 0.404 * 1.5458 | + | 0.892 * 0.9824 | + | 0.115 * 0.8901 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9548 | + | 4.679 * -0.319229 | - | 0.327 * 1.0364 |
| = | -4.11 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $234 Mil.
Revenue was 3114 + 2944 + 3171 + 2774 = $12,003 Mil.
Gross Profit was 944 + 917 + 985 + 821 = $3,667 Mil.
Total Current Assets was $1,855 Mil.
Total Assets was $3,474 Mil.
Property, Plant and Equipment(Net PPE) was $1,568 Mil.
Depreciation, Depletion and Amortization(DDA) was $417 Mil.
Selling, General, & Admin. Expense(SGA) was $3,844 Mil.
Total Current Liabilities was $2,183 Mil.
Long-Term Debt & Capital Lease Obligation was $3,954 Mil.
Net Income was -174 + -163 + -46 + -355 = $-738 Mil.
Non Operating Income was 3 + -4 + 102 + -79 = $22 Mil.
Cash Flow from Operations was 158 + 121 + 217 + -147 = $349 Mil.
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Total Receivables was $341 Mil.
Revenue was 3101 + 2840 + 3284 + 2993 = $12,218 Mil.
Gross Profit was 893 + 824 + 896 + 803 = $3,416 Mil.
Total Current Assets was $1,933 Mil.
Total Assets was $3,580 Mil.
Property, Plant and Equipment(Net PPE) was $1,613 Mil.
Depreciation, Depletion and Amortization(DDA) was $371 Mil.
Selling, General, & Admin. Expense(SGA) was $4,098 Mil.
Total Current Liabilities was $2,072 Mil.
Long-Term Debt & Capital Lease Obligation was $4,030 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) |
| = | (234 / 12003) | / | (341 / 12218) |
| = | 0.019495 | / | 0.02791 |
| | = | 0.6985 |
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) |
| = | (3416 / 12218) | / | (3667 / 12003) |
| = | 0.279587 | / | 0.305507 |
| | = | 0.9152 |
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 - (1855 + 1568) / 3474) | / | (1 - (1933 + 1613) / 3580) |
| = | 0.01468 | / | 0.009497 |
| | = | 1.5458 |
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 |
| = | 12003 | / | 12218 |
| | = | 0.9824 |
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)) |
| = | (371 / (371 + 1613)) | / | (417 / (417 + 1568)) |
| = | 0.186996 | / | 0.210076 |
| | = | 0.8901 |
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) |
| = | (3844 / 12003) | / | (4098 / 12218) |
| = | 0.320253 | / | 0.335407 |
| | = | 0.9548 |
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) |
| = | ((3954 + 2183) / 3474) | / | ((4030 + 2072) / 3580) |
| = | 1.766552 | / | 1.704469 |
| | = | 1.0364 |
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 |
| = | (-738 - 22 | - | 349) | / | 3474 |
| | = | -0.319229 |
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.
Wayfair has a M-score of -4.11 suggests that the company is unlikely to be a manipulator.
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