Levi Strauss (WBO:LEVI) Beneish M-Score : -3.02 (As of May. 07, 2024)

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What is Levi Strauss 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 -3.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:LEVI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22 Med: -2.42 Max: -1.82
Current: -3.02

During the past 10 years, the highest Beneish M-Score of Levi Strauss was -1.82. The lowest was -3.22. And the median was -2.42.

Levi Strauss Beneish M-Score Historical Data

The historical data trend for Levi Strauss'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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Levi Strauss Beneish M-Score Chart

Levi Strauss Annual Data

Trend

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Nov23

Beneish M-Score

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-2.04

-3.22

-2.14

-2.24

-2.41

Levi Strauss Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Beneish M-Score	Get a 7-Day Free Trial															-1.87	-2.31	-2.24	-2.41	-3.02

Competitive Comparison of Levi Strauss's Beneish M-Score

For the Apparel Manufacturing subindustry, Levi Strauss'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.

Levi Strauss's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Levi Strauss's Beneish M-Score distribution charts can be found below:

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

Levi Strauss 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 Levi Strauss for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9229

0.528 * 0.9838

0.404 * 1.0432

0.892 * 0.9256

0.115 * 1.0375

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0787

4.679 * -0.085786

0.327 * 1.0039

-3.02

This Year (Feb24) TTM:

Last Year (Feb23) TTM:

Total Receivables was €613 Mil.
Revenue was 1443.895 + 1517.485 + 1385.587 + 1229.856 = €5,577 Mil.
Gross Profit was 840.325 + 877.523 + 769.821 + 721.464 = €3,209 Mil.
Total Current Assets was €2,340 Mil.
Total Assets was €5,526 Mil.
Property, Plant and Equipment(Net PPE) was €1,572 Mil.
Depreciation, Depletion and Amortization(DDA) was €157 Mil.
Selling, General, & Admin. Expense(SGA) was €2,837 Mil.
Total Current Liabilities was €1,641 Mil.
Long-Term Debt & Capital Lease Obligation was €1,765 Mil.
Net Income was -9.826 + 117.256 + 8.803 + -1.472 = €115 Mil.
Non Operating Income was -109.849 + -22.546 + -89.774 + -3.588 = €-226 Mil.
Cash Flow from Operations was 265.122 + 239.224 + 46.95 + 263.304 = €815 Mil.

Total Receivables was €718 Mil.
Revenue was 1577.433 + 1558.515 + 1497.476 + 1391.661 = €6,025 Mil.
Gross Profit was 880.108 + 870.441 + 851.682 + 808.83 = €3,411 Mil.
Total Current Assets was €2,474 Mil.
Total Assets was €5,486 Mil.
Property, Plant and Equipment(Net PPE) was €1,476 Mil.
Depreciation, Depletion and Amortization(DDA) was €154 Mil.
Selling, General, & Admin. Expense(SGA) was €2,841 Mil.
Total Current Liabilities was €1,657 Mil.
Long-Term Debt & Capital Lease Obligation was €1,711 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)
	=	(613.303 / 5576.823)	/	(717.966 / 6025.085)
	=	0.109974	/	0.119163
	=	0.9229

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)
	=	(3411.061 / 6025.085)	/	(3209.133 / 5576.823)
	=	0.566143	/	0.575441
	=	0.9838

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 - (2340.49 + 1571.543) / 5526.31)	/	(1 - (2474.073 + 1475.907) / 5486.223)
	=	0.292108	/	0.280018
	=	1.0432

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
	=	5576.823	/	6025.085
	=	0.9256

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))
	=	(153.589 / (153.589 + 1475.907))	/	(157.032 / (157.032 + 1571.543))
	=	0.094256	/	0.090845
	=	1.0375

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)
	=	(2837.011 / 5576.823)	/	(2841.482 / 6025.085)
	=	0.508715	/	0.471609
	=	1.0787

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)
	=	((1764.823 + 1641.161) / 5526.31)	/	((1710.901 + 1657.103) / 5486.223)
	=	0.616322	/	0.613902
	=	1.0039

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
	=	(114.761 - -225.757	-	814.6)	/	5526.31
	=	-0.085786

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.

Levi Strauss has a M-score of -3.02 suggests that the company is unlikely to be a manipulator.

Levi Strauss Beneish M-Score Related Terms

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Levi Strauss (WBO:LEVI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Levi Strauss & Co (WBO:LEVI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

LEVI:USA LEVI:Mexico LV2B:Germany

Address

1155 Battery Street, San Francisco, CA, USA, 94111

Website

https://www.levistrauss.com

Levi Strauss & Co is involved in designing, marketing, and selling products that include jeans, casual and dresses pants, tops, shorts, skirts, jackets, footwear, and related accessories directly or through third parties and licensees for men, women, and children under Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. The company manages its business according to three regional segments: the Americas, which is the key revenue driver; Europe; and Asia.