LY Beneish M-Score Historical Data
The historical data trend for LY'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.
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LY Annual Data
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Trend |
Mar14 |
Mar15 |
Mar16 |
Mar17 |
Mar18 |
Mar19 |
Mar20 |
Mar21 |
Mar22 |
Mar23 |
| Beneish M-Score |
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|
|
|
|
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-2.52 |
-2.62 |
-2.09 |
-2.55 |
-2.17 |
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LY 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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|
|
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-2.22 |
-2.17 |
-2.17 |
-2.09 |
-2.32 |
Competitive Comparison
For the Internet Retail subindustry, LY'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.
LY Beneish M-Score Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, LY's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where LY's Beneish M-Score falls into.
LY 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 LY 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 * 1.1378 | + | 0.528 * 0.9739 | + | 0.404 * 1.0102 | + | 0.892 * 1.0088 | + | 0.115 * 1.0128 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0176 | + | 4.679 * -0.000756 | - | 0.327 * 1.04 |
| = | -2.37 |
* 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 $15,411 Mil.
Revenue was 3299.32 + 2984.72 + 3045.62 + 3245.302 = $12,575 Mil.
Gross Profit was 2390.203 + 2134.736 + 2142.424 + 2249.868 = $8,917 Mil.
Total Current Assets was $26,240 Mil.
Total Assets was $62,395 Mil.
Property, Plant and Equipment(Net PPE) was $3,213 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,176 Mil.
Selling, General, & Admin. Expense(SGA) was $7,656 Mil.
Total Current Liabilities was $10,849 Mil.
Long-Term Debt & Capital Lease Obligation was $13,395 Mil.
Net Income was 199.415 + 381.616 + 263.982 + -9.599 = $835 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1319.51 + 481.45 + 228.073 + -1146.447 = $883 Mil.
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Total Receivables was $13,427 Mil.
Revenue was 3362.767 + 2752.172 + 2915.493 + 3434.761 = $12,465 Mil.
Gross Profit was 2383.304 + 1888.965 + 2002.928 + 2333.261 = $8,608 Mil.
Total Current Assets was $27,424 Mil.
Total Assets was $63,550 Mil.
Property, Plant and Equipment(Net PPE) was $2,913 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,085 Mil.
Selling, General, & Admin. Expense(SGA) was $7,458 Mil.
Total Current Liabilities was $10,137 Mil.
Long-Term Debt & Capital Lease Obligation was $13,608 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) |
| = | (15411.334 / 12574.962) | / | (13426.829 / 12465.193) |
| = | 1.225557 | / | 1.077146 |
| | = | 1.1378 |
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) |
| = | (8608.458 / 12465.193) | / | (8917.231 / 12574.962) |
| = | 0.6906 | / | 0.709126 |
| | = | 0.9739 |
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 - (26239.954 + 3213.413) / 62394.933) | / | (1 - (27423.789 + 2913.127) / 63549.87) |
| = | 0.527953 | / | 0.522628 |
| | = | 1.0102 |
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 |
| = | 12574.962 | / | 12465.193 |
| | = | 1.0088 |
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)) |
| = | (1084.928 / (1084.928 + 2913.127)) | / | (1176.141 / (1176.141 + 3213.413)) |
| = | 0.271364 | / | 0.267941 |
| | = | 1.0128 |
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) |
| = | (7656.319 / 12574.962) | / | (7458.371 / 12465.193) |
| = | 0.608854 | / | 0.598336 |
| | = | 1.0176 |
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) |
| = | ((13395.033 + 10849.484) / 62394.933) | / | ((13607.692 + 10136.961) / 63549.87) |
| = | 0.388565 | / | 0.373638 |
| | = | 1.04 |
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 |
| = | (835.414 - 0 | - | 882.586) | / | 62394.933 |
| | = | -0.000756 |
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.
LY has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.
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