BBY has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
Best Buy Co Inc has a M-score of -3.23 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Best Buy Co Inc was -0.64. The lowest was -4.05. And the median was -2.63.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Best Buy Co Inc 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 * 0.656||+||0.528 * 1.0701||+||0.404 * 0.5059||+||0.892 * 0.8862||+||0.115 * 0.9891|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9753||+||4.679 * -0.0431||-||0.327 * 0.9211|
|This Year (Jan14) TTM:||Last Year (Oct12) TTM:|
|Accounts Receivable was $1,308 Mil.|
Revenue was 14368 + 9362 + 9300 + 9380 = $42,410 Mil.
Gross Profit was 2881 + 2170 + 2469 + 2170 = $9,690 Mil.
Total Current Assets was $10,485 Mil.
Total Assets was $14,013 Mil.
Property, Plant and Equipment(Net PPE) was $2,598 Mil.
Depreciation, Depletion and Amortization(DDA) was $716 Mil.
Selling, General & Admin. Expense(SGA) was $8,391 Mil.
Total Current Liabilities was $7,436 Mil.
Long-Term Debt was $1,612 Mil.
Net Income was 293 + 54 + 266 + -81 = $532 Mil.
Non Operating Income was 11 + 12 + 19 + 0 = $42 Mil.
Cash Flow from Operations was 770 + 305 + 24 + -5 = $1,094 Mil.
|Accounts Receivable was $2,250 Mil.
Revenue was 9381 + 10547 + 11610 + 16319 = $47,857 Mil.
Gross Profit was 2228 + 2564 + 2907 + 4002 = $11,701 Mil.
Total Current Assets was $11,846 Mil.
Total Assets was $17,556 Mil.
Property, Plant and Equipment(Net PPE) was $3,407 Mil.
Depreciation, Depletion and Amortization(DDA) was $926 Mil.
Selling, General & Admin. Expense(SGA) was $9,709 Mil.
Total Current Liabilities was $11,148 Mil.
Long-Term Debt was $1,158 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(1308 / 42410)||/||(2250 / 47857)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(2170 / 47857)||/||(2881 / 42410)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (10485 + 2598) / 14013)||/||(1 - (11846 + 3407) / 17556)|
4. SGI = Sales Growth Index
Ratio of sales 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.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation 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))|
|=||(926 / (926 + 3407))||/||(716 / (716 + 2598))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses 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)|
|=||(8391 / 42410)||/||(9709 / 47857)|
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$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((1612 + 7436) / 14013)||/||((1158 + 11148) / 17556)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(532 - 42||-||1094)||/||14013|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
Best Buy Co Inc has a M-score of -3.23 suggests that the company will not be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
Best Buy Co Inc Annual Data
Best Buy Co Inc Quarterly Data