G-III Apparel Group (FRA:GI4) Beneish M-Score : -3.41 (As of Jun. 06, 2024)

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What is G-III Apparel Group 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 -3.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:GI4' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41 Med: -2.25 Max: -1.86
Current: -3.41

During the past 13 years, the highest Beneish M-Score of G-III Apparel Group was -1.86. The lowest was -3.41. And the median was -2.25.

G-III Apparel Group Beneish M-Score Historical Data

The historical data trend for G-III Apparel Group'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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G-III Apparel Group Beneish M-Score Chart

G-III Apparel Group Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Beneish M-Score

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-2.36

-2.48

-2.20

-1.90

-3.41

G-III Apparel Group Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Beneish M-Score	Get a 7-Day Free Trial															-1.90	-2.52	-2.61	-3.11	-3.41

Competitive Comparison of G-III Apparel Group's Beneish M-Score

For the Apparel Manufacturing subindustry, G-III Apparel Group'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.

G-III Apparel Group's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where G-III Apparel Group's Beneish M-Score falls into.

G-III Apparel Group 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 G-III Apparel Group 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 * 0.8985

0.528 * 0.8508

0.404 * 0.9884

0.892 * 0.9174

0.115 * 0.971

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.153

4.679 * -0.147916

0.327 * 0.8575

-3.41

This Year (Jan24) TTM:

Last Year (Jan23) TTM:

Total Receivables was €516 Mil.
Revenue was 702.07 + 1010.553 + 596.424 + 553.209 = €2,862 Mil.
Gross Profit was 258.859 + 410.442 + 250.094 + 227.819 = €1,147 Mil.
Total Current Assets was €1,524 Mil.
Total Assets was €2,461 Mil.
Property, Plant and Equipment(Net PPE) was €250 Mil.
Depreciation, Depletion and Amortization(DDA) was €25 Mil.
Selling, General, & Admin. Expense(SGA) was €851 Mil.
Total Current Liabilities was €453 Mil.
Long-Term Debt & Capital Lease Obligation was €533 Mil.
Net Income was 26.488 + 120.875 + 14.86 + 2.951 = €165 Mil.
Non Operating Income was -7.088 + -3.173 + 0.174 + 0.887 = €-9 Mil.
Cash Flow from Operations was 331.683 + 13.061 + 9.626 + 184.07 = €538 Mil.

Total Receivables was €626 Mil.
Revenue was 792.909 + 1094.473 + 594.955 + 637.789 = €3,120 Mil.
Gross Profit was 261.274 + 349.796 + 225.034 + 227.832 = €1,064 Mil.
Total Current Assets was €1,534 Mil.
Total Assets was €2,517 Mil.
Property, Plant and Equipment(Net PPE) was €272 Mil.
Depreciation, Depletion and Amortization(DDA) was €27 Mil.
Selling, General, & Admin. Expense(SGA) was €804 Mil.
Total Current Liabilities was €537 Mil.
Long-Term Debt & Capital Lease Obligation was €639 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)
	=	(516.249 / 2862.256)	/	(626.366 / 3120.126)
	=	0.180364	/	0.20075
	=	0.8985

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)
	=	(1063.936 / 3120.126)	/	(1147.214 / 2862.256)
	=	0.340991	/	0.400808
	=	0.8508

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 - (1524.172 + 249.668) / 2461.309)	/	(1 - (1533.52 + 272.282) / 2517.112)
	=	0.27931	/	0.28259
	=	0.9884

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
	=	2862.256	/	3120.126
	=	0.9174

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))
	=	(26.75 / (26.75 + 272.282))	/	(25.334 / (25.334 + 249.668))
	=	0.089455	/	0.092123
	=	0.971

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)
	=	(850.573 / 2862.256)	/	(804.133 / 3120.126)
	=	0.297169	/	0.257725
	=	1.153

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)
	=	((533.408 + 453.151) / 2461.309)	/	((639.219 + 537.376) / 2517.112)
	=	0.400827	/	0.467438
	=	0.8575

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
	=	(165.174 - -9.2	-	538.44)	/	2461.309
	=	-0.147916

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.

G-III Apparel Group has a M-score of -3.41 suggests that the company is unlikely to be a manipulator.

G-III Apparel Group Beneish M-Score Related Terms

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G-III Apparel Group (FRA:GI4) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » G-III Apparel Group Ltd (FRA:GI4) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

GIII:USA

Address

512 Seventh Avenue, New York, NY, USA, 10018

Website

https://www.g-iii.com

G-III Apparel Group Ltd is a textile company. It makes a wide range of apparel, footwear, and accessories that it sells under its own brands, licensed brands, and private-label brands. G-III has a substantial portfolio for licensed and proprietary brands, anchored by five global power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld. The company has two reportable operations: Wholesale Operations and Retail Operations. The Wholesale operations segment includes sales of products under brands licensed by us from third parties, as well as sales of products under its own brands and private label brands. The retail operations segment consists primarily of Wilsons Leather, G.H. Bass, and DKNY retail stores. It derives most of its revenues from Wholesale operations.

G-III Apparel Group (FRA:GI4) Headlines

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