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Foot Locker (WBO:FOOT) Beneish M-Score : -2.38 (As of May. 17, 2024)


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What is Foot Locker 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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:FOOT' s Beneish M-Score Range Over the Past 10 Years
Min: -3   Med: -2.62   Max: -1.76
Current: -2.38

During the past 13 years, the highest Beneish M-Score of Foot Locker was -1.76. The lowest was -3.00. And the median was -2.62.


Foot Locker Beneish M-Score Historical Data

The historical data trend for Foot Locker'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.

Foot Locker Beneish M-Score Chart

Foot Locker Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.00 -2.58 -1.76 -2.10 -2.38

Foot Locker 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.10 -2.29 -2.34 -2.41 -2.38

Competitive Comparison of Foot Locker's Beneish M-Score

For the Apparel Retail subindustry, Foot Locker'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.


Foot Locker's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Foot Locker's Beneish M-Score distribution charts can be found below:

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



Foot Locker 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 Foot Locker 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 * 1.1089+0.528 * 1.1505+0.404 * 0.8679+0.892 * 0.8922+0.115 * 1.0032
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0902+4.679 * 0.018615-0.327 * 1.0038
=-2.38

* 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 (Jan24) TTM:Last Year (Jan23) TTM:
Total Receivables was €147 Mil.
Revenue was 2188.512 + 1883.583 + 1685.056 + 1761.072 = €7,518 Mil.
Gross Profit was 585.684 + 517.062 + 458.328 + 530.784 = €2,092 Mil.
Total Current Assets was €2,043 Mil.
Total Assets was €6,305 Mil.
Property, Plant and Equipment(Net PPE) was €2,862 Mil.
Depreciation, Depletion and Amortization(DDA) was €183 Mil.
Selling, General, & Admin. Expense(SGA) was €1,781 Mil.
Total Current Liabilities was €1,185 Mil.
Long-Term Debt & Capital Lease Obligation was €2,245 Mil.
Net Income was -357.102 + 26.516 + -4.52 + 32.832 = €-302 Mil.
Non Operating Income was -458.082 + -1.894 + -10.848 + -36.48 = €-507 Mil.
Cash Flow from Operations was 173.502 + 81.442 + -59.664 + -107.616 = €88 Mil.
Total Receivables was €148 Mil.
Revenue was 2168.736 + 2208.64 + 2032.844 + 2016.828 = €8,427 Mil.
Gross Profit was 654.24 + 709.485 + 645.831 + 688.018 = €2,698 Mil.
Total Current Assets was €2,339 Mil.
Total Assets was €7,338 Mil.
Property, Plant and Equipment(Net PPE) was €3,121 Mil.
Depreciation, Depletion and Amortization(DDA) was €200 Mil.
Selling, General, & Admin. Expense(SGA) was €1,831 Mil.
Total Current Liabilities was €1,494 Mil.
Long-Term Debt & Capital Lease Obligation was €2,483 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)
=(146.88 / 7518.223) / (148.48 / 8427.048)
=0.019537 / 0.017619
=1.1089

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)
=(2697.574 / 8427.048) / (2091.858 / 7518.223)
=0.320109 / 0.278238
=1.1505

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 - (2042.55 + 2862.324) / 6304.824) / (1 - (2339.488 + 3120.864) / 7337.696)
=0.222044 / 0.255849
=0.8679

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
=7518.223 / 8427.048
=0.8922

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))
=(200.245 / (200.245 + 3120.864)) / (183.039 / (183.039 + 2862.324))
=0.060295 / 0.060104
=1.0032

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)
=(1780.508 / 7518.223) / (1830.547 / 8427.048)
=0.236826 / 0.217223
=1.0902

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)
=((2245.428 + 1185.138) / 6304.824) / ((2483.328 + 1494.08) / 7337.696)
=0.544118 / 0.542051
=1.0038

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
=(-302.274 - -507.304 - 87.664) / 6304.824
=0.018615

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.

Foot Locker has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.


Foot Locker Beneish M-Score Related Terms

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Foot Locker (WBO:FOOT) Business Description

Traded in Other Exchanges
Address
330 West 34th Street, New York, NY, USA, 10001
Foot Locker Inc operates thousands of retail stores throughout the United States, Canada, Europe, Australia, and New Zealand. It also has one franchisee in the Middle East and one in South Korea, each of which operates multiple stores in those regions. The company mainly sells athletically inspired shoes and apparel. Foot Locker's merchandise comes from only a few suppliers, with Nike providing the majority. Store names include Foot Locker, Champs, and Runners Point. The company also has an e-commerce business selling through Footlocker.com, Eastbay, and Final-Score.

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