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bebe stores Inc (NAS:BEBE)
Beneish M-Score
-3.75 (As of Today)

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.

bebe stores Inc has a M-score of -3.75 suggests that the company is not a manipulator.

BEBE' s 10-Year Beneish M-Score Range
Min: -4.03   Max: 2.74
Current: -3.75

-4.03
2.74

During the past 13 years, the highest Beneish M-Score of bebe stores Inc was 2.74. The lowest was -4.03. And the median was -2.67.


Definition

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 bebe stores 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 * 0.7605+0.528 * 1.0205+0.404 * 0.7834+0.892 * 0.9301+0.115 * 1.1292
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0555+4.679 * -0.1634-0.327 * 1.4626
=-3.75

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $5.5 Mil.
Revenue was 128.914 + 102.156 + 87.546 + 93.47 = $412.1 Mil.
Gross Profit was 47.907 + 32.77 + 28.56 + 25.292 = $134.5 Mil.
Total Current Assets was $142.3 Mil.
Total Assets was $246.1 Mil.
Property, Plant and Equipment(Net PPE) was $93.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.3 Mil.
Selling, General & Admin. Expense(SGA) was $188.4 Mil.
Total Current Liabilities was $51.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -0.385 + -10.817 + -34.486 + -24.276 = $-70.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 15.116 + -19.834 + -5.184 + -19.861 = $-29.8 Mil.
Accounts Receivable was $7.8 Mil.
Revenue was 123.261 + 109.268 + 97.638 + 112.905 = $443.1 Mil.
Gross Profit was 42 + 39.622 + 32.414 + 33.578 = $147.6 Mil.
Total Current Assets was $206.5 Mil.
Total Assets was $322.8 Mil.
Property, Plant and Equipment(Net PPE) was $99.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.2 Mil.
Selling, General & Admin. Expense(SGA) was $191.9 Mil.
Total Current Liabilities was $46.2 Mil.
Long-Term Debt was $0.0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(5.503 / 412.086) / (7.78 / 443.072)
=0.01335401 / 0.01755922
=0.7605

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)
=(32.77 / 443.072) / (47.907 / 412.086)
=0.3331603 / 0.32645855
=1.0205

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (142.346 + 93.73) / 246.067) / (1 - (206.483 + 99.593) / 322.807)
=0.04060276 / 0.05182973
=0.7834

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.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=412.086 / 443.072
=0.9301

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))
=(21.223 / (21.223 + 99.593)) / (17.267 / (17.267 + 93.73))
=0.17566382 / 0.15556276
=1.1292

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)
=(188.397 / 412.086) / (191.919 / 443.072)
=0.45717884 / 0.43315533
=1.0555

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)
=((0 + 51.527) / 246.067) / ((0 + 46.216) / 322.807)
=0.20940232 / 0.14316914
=1.4626

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
=(-69.964 - 0 - -29.763) / 246.067
=-0.1634

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.

bebe stores Inc has a M-score of -3.75 suggests that the company will not be a manipulator.


Related Terms

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

bebe stores Inc Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 1.64310.76361.02081.15470.73611.38860.89541.63530.87930.7439
GMI 0.94681.00351.03141.04571.13740.99821.0390.97791.19441.0246
AQI 0.61311.32441.222510.95560.58290.92830.9380.88870.86620.3505
SGI 1.36881.13651.15861.02490.87690.79591.02781.07610.87250.9178
DEPI 1.09591.06380.97810.99540.82990.87251.04341.28230.87990.9957
SGAI 0.90271.05991.02711.06351.12710.98670.98730.9581.1791.093
LVGI 0.94141.09360.86691.01471.06362.23140.40961.05681.31231.5623
TATA -0.0746-0.0582-0.0598-0.0538-0.0489-0.0774-0.0536-0.0467-0.2003-0.1594
M-score -2.05-2.75-2.461.46-3.22-3.11-2.61-2.08-3.74-3.98

bebe stores Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.30741.41371.42590.87930.91731.05160.65620.76471.02410.7605
GMI 0.99771.06581.13861.19441.16851.11621.06821.01621.05161.0205
AQI 0.90550.93870.77170.86620.77670.25150.33990.35050.30030.7834
SGI 1.03440.97140.9350.87250.87290.8770.85230.89290.89260.9301
DEPI 1.29541.2191.11260.87990.84570.87230.8980.99571.07021.1292
SGAI 0.98851.06051.11731.1791.19351.12631.11521.09511.05441.0555
LVGI 0.96390.93491.11461.31231.37421.42871.20831.56231.42521.4626
TATA -0.0249-0.0052-0.14-0.2002-0.2257-0.2294-0.1343-0.1594-0.1468-0.1634
M-score -2.27-2.10-2.86-3.74-3.90-4.03-3.89-3.99-3.64-3.75
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