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VSTS (Vestis) Beneish M-Score : -3.65 (As of Dec. 11, 2024)


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What is Vestis Beneish M-Score?

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 -3.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

VSTS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.65   Med: -3.36   Max: -3.06
Current: -3.65

During the past 5 years, the highest Beneish M-Score of Vestis was -3.06. The lowest was -3.65. And the median was -3.36.


Vestis Beneish M-Score Historical Data

The historical data trend for Vestis'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.

Vestis Beneish M-Score Chart

Vestis Annual Data
Trend Sep20 Sep21 Sep22 Sep23 Sep24
Beneish M-Score
- - - -3.06 -3.65

Vestis Quarterly Data
Sep20 Sep21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.06 - -2.83 -2.82 -3.65

Competitive Comparison of Vestis's Beneish M-Score

For the Rental & Leasing Services subindustry, Vestis'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.


Vestis's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Vestis's Beneish M-Score distribution charts can be found below:

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



Vestis 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 Vestis 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 * 0.4543+0.528 * 1.0407+0.404 * 1.0659+0.892 * 0.9931+0.115 * 0.9992
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0402+4.679 * -0.153329-0.327 * 0.9565
=-3.65

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $177 Mil.
Revenue was 684.281 + 698.248 + 705.368 + 717.923 = $2,806 Mil.
Gross Profit was 196.966 + 202.489 + 200.951 + 215.542 = $816 Mil.
Total Current Assets was $787 Mil.
Total Assets was $2,932 Mil.
Property, Plant and Equipment(Net PPE) was $744 Mil.
Depreciation, Depletion and Amortization(DDA) was $141 Mil.
Selling, General, & Admin. Expense(SGA) was $517 Mil.
Total Current Liabilities was $456 Mil.
Long-Term Debt & Capital Lease Obligation was $1,329 Mil.
Net Income was -2.298 + 5.037 + 5.965 + 12.266 = $21 Mil.
Non Operating Income was -1.199 + 0 + 0 + 0 = $-1 Mil.
Cash Flow from Operations was 295.588 + 48.658 + 76.037 + 51.505 = $472 Mil.
Total Receivables was $393 Mil.
Revenue was 715.901 + 709.384 + 699.305 + 700.696 = $2,825 Mil.
Gross Profit was 225.829 + 224.816 + 199.843 + 204.583 = $855 Mil.
Total Current Assets was $1,020 Mil.
Total Assets was $3,157 Mil.
Property, Plant and Equipment(Net PPE) was $722 Mil.
Depreciation, Depletion and Amortization(DDA) was $137 Mil.
Selling, General, & Admin. Expense(SGA) was $501 Mil.
Total Current Liabilities was $396 Mil.
Long-Term Debt & Capital Lease Obligation was $1,614 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)
=(177.271 / 2805.82) / (392.916 / 2825.286)
=0.06318 / 0.139071
=0.4543

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)
=(855.071 / 2825.286) / (815.948 / 2805.82)
=0.302649 / 0.290806
=1.0407

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 - (787.389 + 744.388) / 2932.387) / (1 - (1019.965 + 722.421) / 3157.124)
=0.477635 / 0.44811
=1.0659

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
=2805.82 / 2825.286
=0.9931

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))
=(136.504 / (136.504 + 722.421)) / (140.781 / (140.781 + 744.388))
=0.158924 / 0.159044
=0.9992

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)
=(517.216 / 2805.82) / (500.658 / 2825.286)
=0.184337 / 0.177206
=1.0402

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)
=((1329.169 + 456.102) / 2932.387) / ((1613.994 + 395.525) / 3157.124)
=0.608812 / 0.636503
=0.9565

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
=(20.97 - -1.199 - 471.788) / 2932.387
=-0.153329

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.

Vestis has a M-score of -3.65 suggests that the company is unlikely to be a manipulator.


Vestis Business Description

Traded in Other Exchanges
Address
1035 Alpharetta Street, Suite 2100, Roswell, GA, USA, 30075
Vestis Corp is a provider of uniform rentals and workplace supplies across the United States and Canada. It provides uniforms, mats, towels, linens, restroom supplies, first-aid supplies, safety products, and other workplace supplies. The Company serves customers ranging from small, family-owned operations with a single location to large corporations and national franchises with multiple locations. The company operates in the United States and Canada as reportable segments. The company earns the majority of its revenue from the United States.
Executives
Douglas A Pertz director 1801 BAYBERRY COURT, RICHMOND VA 23226
Grant Shih officer: Chief Technology Officer 2400 MARKET STREET, PHILADELPHIA PA 19103
Ricky T Dillon officer: EVP and CFO ONE SOUTH WACKER DRIVE, SUITE 1000, CHICAGO IL 60606
Williams Ena Koschel director 15455 DALLAS PARKWAY, SUITE 550, ADDISON TX 75001
Timothy R Donovan officer: EVP, CLO and General Counsel 1703 N. RANDALL ROAD, ELGIN IL 60123
Tracy C Jokinen director 5995 OPUS PARKWAY, SUITE 500, MINNETONKA MN 55343
James Phillip Holloman director P.O. BOX 625737, 6800 CINTAS BOULEVARD, CINCINNATI OH 45262
Kim Scott director, officer: President and CEO 150 PEABODY PL, MEMPHIS TN 38103
Angela Kervin officer: EVP and Chief HR Officer 2400 MARKET STREET, PHILADELPHIA PA 19103
Lynn Mckee director
Burke Richard L. Jr. director 90 FORT WADE ROAD, PONTE VEDRA FL 32081
Mary Anne Whitney director 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Intermediate Holdco Aramark 10 percent owner 2400 MARKET STREET, PHILADELPHIA PA 19103
Christopher J Synek officer: Chief Operating Officer 2400 MARKET STREET, PHILADELPHIA PA 19103
Ramark 10 percent owner 2400 MARKET STREET, PHILADELPHIA PA 19103