Switch to:
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
TJX Companies Inc (NYSE:TJX)
Beneish M-Score
-2.86 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

TJX Companies Inc has a M-score of -2.86 suggests that the company is not a manipulator.

TJX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38   Max: -0.9
Current: -2.86

-3.38
-0.9

During the past 13 years, the highest Beneish M-Score of TJX Companies Inc was -0.90. The lowest was -3.38. And the median was -2.69.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 TJX Companies Inc 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 * 1.0656+0.528 * 0.9953+0.404 * 0.9426+0.892 * 1.057+0.115 * 1.0075
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0293+4.679 * -0.0937-0.327 * 1.06
=-2.86

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Apr17) TTM:Last Year (Apr16) TTM:
Accounts Receivable was $317 Mil.
Revenue was 7784.024 + 9467.647 + 8291.688 + 7882.053 = $33,425 Mil.
Gross Profit was 2253.952 + 2680.87 + 2447.815 + 2319.092 = $9,702 Mil.
Total Current Assets was $7,549 Mil.
Total Assets was $12,763 Mil.
Property, Plant and Equipment(Net PPE) was $4,601 Mil.
Depreciation, Depletion and Amortization(DDA) was $674 Mil.
Selling, General & Admin. Expense(SGA) was $5,845 Mil.
Total Current Liabilities was $4,605 Mil.
Long-Term Debt was $2,228 Mil.
Net Income was 536.279 + 677.928 + 549.786 + 562.174 = $2,326 Mil.
Non Operating Income was 0 + 0 + -82.946 + 0 = $-83 Mil.
Cash Flow from Operations was 448.434 + 1514.6 + 928.675 + 713.386 = $3,605 Mil.
Accounts Receivable was $282 Mil.
Revenue was 7542.356 + 8962.075 + 7753.495 + 7363.731 = $31,622 Mil.
Gross Profit was 2170.213 + 2573.883 + 2246.596 + 2144.54 = $9,135 Mil.
Total Current Assets was $6,878 Mil.
Total Assets was $11,705 Mil.
Property, Plant and Equipment(Net PPE) was $4,230 Mil.
Depreciation, Depletion and Amortization(DDA) was $625 Mil.
Selling, General & Admin. Expense(SGA) was $5,372 Mil.
Total Current Liabilities was $4,297 Mil.
Long-Term Debt was $1,615 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(317.224 / 33425.412) / (281.631 / 31621.657)
=0.0094905 / 0.00890627
=1.0656

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)
=(9135.232 / 31621.657) / (9701.729 / 33425.412)
=0.28889163 / 0.29025009
=0.9953

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (7548.5 + 4601.044) / 12763.481) / (1 - (6877.701 + 4229.704) / 11704.722)
=0.04810106 / 0.05103214
=0.9426

4. SGI = Sales Growth Index

Ratio of sales 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
=33425.412 / 31621.657
=1.057

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(625.17 / (625.17 + 4229.704)) / (674.267 / (674.267 + 4601.044))
=0.12877162 / 0.12781559
=1.0075

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(5845.02 / 33425.412) / (5372.108 / 31621.657)
=0.17486755 / 0.16988699
=1.0293

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((2228.351 + 4605.392) / 12763.481) / ((1615.477 + 4296.735) / 11704.722)
=0.53541373 / 0.50511341
=1.06

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
=(2326.167 - -82.946 - 3605.095) / 12763.481
=-0.0937

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

TJX Companies Inc has a M-score of -2.86 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

TJX Companies Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
DSRI 1.15980.96010.97311.24940.96580.97730.88990.95981.04621.0138
GMI 0.9861.02030.91620.97490.98430.96120.99720.99850.99150.9935
AQI 1.15061.00630.87991.03281.0151.15810.87020.93591.02210.9223
SGI 1.07211.04311.06071.08151.05691.11591.05971.06041.06421.0723
DEPI 1.07171.03880.96531.01871.03421.11281.02951.00241.01871.0222
SGAI 1.06420.93830.98461.03050.99210.97920.99180.99131.04181.0333
LVGI 1.04440.93150.96790.99610.94481.02610.98531.08761.03951.0466
TATA -0.0923-0.0467-0.1384-0.078-0.0507-0.1208-0.0454-0.0707-0.0574-0.0947
M-score -2.66-2.65-3.18-2.54-2.68-2.91-2.78-2.85-2.66-2.90

TJX Companies Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
DSRI 0.95980.96961.01470.99051.04620.99561.02951.0371.01381.0656
GMI 0.99850.99190.98670.99050.99150.99120.99270.98480.99350.9953
AQI 0.93590.92360.95610.94961.02211.05011.05750.97790.92230.9426
SGI 1.06041.06231.06031.05961.06421.07361.07491.0791.07231.057
DEPI 1.00241.02041.01781.01131.01871.01720.990.98221.02221.0075
SGAI 0.99130.99751.01461.02791.04181.04441.04421.05121.03331.0293
LVGI 1.08761.07481.02251.02141.03950.98440.99621.04461.04661.06
TATA -0.0707-0.0643-0.0513-0.0484-0.0574-0.0533-0.0722-0.0776-0.0947-0.0937
M-score -2.85-2.81-2.69-2.70-2.66-2.65-2.71-2.78-2.90-2.86
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK