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TGT (Target) Beneish M-Score : -2.85 (As of Oct. 31, 2024)


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What is Target 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 -2.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TGT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.48   Med: -2.82   Max: -2.29
Current: -2.85

During the past 13 years, the highest Beneish M-Score of Target was -2.29. The lowest was -3.48. And the median was -2.82.


Target Beneish M-Score Historical Data

The historical data trend for Target'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.

Target Beneish M-Score Chart

Target 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 -3.01 -2.92 -2.49 -2.31 -3.06

Target Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 -2.91 -3.03 -3.06 -2.93 -2.85

Competitive Comparison of Target's Beneish M-Score

For the Discount Stores subindustry, Target'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.


Target's Beneish M-Score Distribution in the Retail - Defensive Industry

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

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



Target 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 Target 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+0.528 * 0.9185+0.404 * 1.048+0.892 * 0.9934+0.115 * 0.9593
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0449+4.679 * -0.074596-0.327 * 0.9509
=-2.85

* 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 (Jul24) TTM:Last Year (Jul23) TTM:
Total Receivables was $0 Mil.
Revenue was 25452 + 24531 + 31919 + 25398 = $107,300 Mil.
Gross Profit was 7653 + 7082 + 8516 + 7249 = $30,500 Mil.
Total Current Assets was $17,918 Mil.
Total Assets was $55,995 Mil.
Property, Plant and Equipment(Net PPE) was $36,620 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,912 Mil.
Selling, General, & Admin. Expense(SGA) was $21,905 Mil.
Total Current Liabilities was $19,984 Mil.
Long-Term Debt & Capital Lease Obligation was $17,098 Mil.
Net Income was 1192 + 942 + 1382 + 971 = $4,487 Mil.
Non Operating Income was 20 + 29 + 28 + 25 = $102 Mil.
Cash Flow from Operations was 2238 + 1101 + 3289 + 1934 = $8,562 Mil.
Total Receivables was $0 Mil.
Revenue was 24773 + 25322 + 31395 + 26518 = $108,008 Mil.
Gross Profit was 6975 + 6936 + 7449 + 6838 = $28,198 Mil.
Total Current Assets was $16,098 Mil.
Total Assets was $53,206 Mil.
Property, Plant and Equipment(Net PPE) was $35,787 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,721 Mil.
Selling, General, & Admin. Expense(SGA) was $21,103 Mil.
Total Current Liabilities was $19,332 Mil.
Long-Term Debt & Capital Lease Obligation was $17,724 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)
=(0 / 107300) / (0 / 108008)
=0 / 0
=1

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)
=(28198 / 108008) / (30500 / 107300)
=0.261073 / 0.28425
=0.9185

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 - (17918 + 36620) / 55995) / (1 - (16098 + 35787) / 53206)
=0.02602 / 0.024828
=1.048

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
=107300 / 108008
=0.9934

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))
=(2721 / (2721 + 35787)) / (2912 / (2912 + 36620))
=0.070661 / 0.073662
=0.9593

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)
=(21905 / 107300) / (21103 / 108008)
=0.204147 / 0.195384
=1.0449

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)
=((17098 + 19984) / 55995) / ((17724 + 19332) / 53206)
=0.662238 / 0.696463
=0.9509

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
=(4487 - 102 - 8562) / 55995
=-0.074596

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.

Target has a M-score of -2.85 suggests that the company is unlikely to be a manipulator.


Target Business Description

Address
1000 Nicollet Mall, Minneapolis, MN, USA, 55403
Target serves as the nation's seventh-largest retailer, with its strategy predicated on delivering a gratifying in-store shopping experience and a wide product assortment of trendy apparel, home goods, and household essentials at competitive prices. Target's upscale and stylish image began to carry national merit in the 1990s—a decade in which the brand saw its top line grow threefold to almost $30 billion—and has since cemented itself as a leading US retailer.Today, Target operates over 1,950 stores in the United States, generates over $100 billion in sales, and fulfills over 2 billion customer orders annually. The firm's vast physical footprint is typically concentrated in urban and suburban markets as the firm seeks to attract a more affluent consumer base.
Executives
Matthew A Liegel officer: Chief Accounting Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Brian C Cornell director, officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Don H Liu officer: Executive Officer 1000 NICOLLET MALL, TPS-3155, MINNEAPOLIS MN 55403
Christina Hennington officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Melissa K Kremer officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Cara A Sylvester officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Matthew L Zabel officer: Executive Officer 1000 NICOLLET MALL, TPS-3155, MINNEAPOLIS MN 55403
Michael J Fiddelke officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
John J Mulligan officer: Executive Officer 1000 NICOLLET MALL, TPS-2672, MINNEAPOLIS MN 55403
Grace Puma Whiteford director C/O WILLIAM SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Jill Sando officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Katie M Boylan officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Robert M Harrison officer: Chief Accounting Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Richard H. Gomez officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Gail Boudreaux director GENZYME CORP., 500 KENDALL STREET, CAMBRIDGE MA 02142