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bebe stores Inc (NAS:BEBE)
Beneish M-Score
-3.86 (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 -3.86 suggests that the company is not a manipulator.

BEBE' s 10-Year Beneish M-Score Range
Min: -4.03   Max: 2.74
Current: -3.86

-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 -2.53.


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 * 0.6087+0.528 * 1.0984+0.404 * 0.3399+0.892 * 0.9188+0.115 * 0.898
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1293+4.679 * -0.1343-0.327 * 1.2083
=-3.86

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $4.6 Mil.
Revenue was 93.47 + 129.974 + 114.127 + 119.155 = $456.7 Mil.
Gross Profit was 25.292 + 43.655 + 40.62 + 36.515 = $146.1 Mil.
Total Current Assets was $178.4 Mil.
Total Assets was $292.1 Mil.
Property, Plant and Equipment(Net PPE) was $96.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.7 Mil.
Selling, General & Admin. Expense(SGA) was $206.8 Mil.
Total Current Liabilities was $41.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -24.276 + -5.465 + -9.153 + -20.75 = $-59.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -19.861 + 5.984 + -11.216 + 4.692 = $-20.4 Mil.
Accounts Receivable was $8.3 Mil.
Revenue was 112.905 + 135.535 + 117.091 + 131.537 = $497.1 Mil.
Gross Profit was 33.578 + 45.928 + 42.275 + 52.852 = $174.6 Mil.
Total Current Assets was $186.0 Mil.
Total Assets was $362.1 Mil.
Property, Plant and Equipment(Net PPE) was $112.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.2 Mil.
Selling, General & Admin. Expense(SGA) was $199.3 Mil.
Total Current Liabilities was $42.8 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)
=(4.62 / 456.726) / (8.261 / 497.068)
=0.01011547 / 0.01661946
=0.6087

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)
=(43.655 / 497.068) / (25.292 / 456.726)
=0.35132618 / 0.31984603
=1.0984

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 - (178.414 + 96.146) / 292.101) / (1 - (185.986 + 112.112) / 362.071)
=0.06005115 / 0.17668634
=0.3399

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
=456.726 / 497.068
=0.9188

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))
=(21.22 / (21.22 + 112.112)) / (20.71 / (20.71 + 96.146))
=0.15915159 / 0.17722667
=0.898

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)
=(206.784 / 456.726) / (199.28 / 497.068)
=0.45275285 / 0.40091094
=1.1293

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 + 41.752) / 292.101) / ((0 + 42.832) / 362.071)
=0.14293686 / 0.11829724
=1.2083

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
=(-59.644 - 0 - -20.401) / 292.101
=-0.1343

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 -3.86 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 1.44581.64310.76361.02081.15470.73611.30940.94961.63530.8403
GMI 0.950.94681.00351.03141.04571.13741.037210.97791.2175
AQI 0.76930.61311.32441.222510.95570.58290.92830.9380.88870.8662
SGI 1.15051.36881.13651.15861.02490.87690.84410.96921.07610.9131
DEPI 1.18921.09591.06380.97810.99540.82990.87251.04341.28230.8799
SGAI 0.91740.90271.05991.02711.06351.12711.06140.91780.9581.1974
LVGI 1.03010.94141.09360.86691.01471.06362.23140.40961.05681.3123
TATA -0.0882-0.0746-0.0582-0.0598-0.0812-0.0489-0.0774-0.0536-0.0467-0.2003
M-score -2.44-2.05-2.75-2.461.33-3.22-3.13-2.62-2.08-3.73

bebe stores Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.32381.22861.64411.30741.41371.42590.84030.86710.97850.6087
GMI 0.98110.96110.96970.99771.06581.13861.21751.19591.14711.0984
AQI 0.91080.94320.88870.90550.93870.77170.86620.77670.25150.3399
SGI 1.04871.08271.07041.03440.97140.9350.91310.92350.94250.9188
DEPI 1.12391.16811.28231.29541.2191.11260.87990.84570.87230.898
SGAI 0.89870.91290.95740.98851.06051.11731.19741.21121.1431.1293
LVGI 0.95721.10551.05680.96390.93491.11461.31231.37421.42871.2083
TATA -0.0646-0.0564-0.0467-0.0249-0.0052-0.14-0.2002-0.2257-0.2294-0.1343
M-score -2.44-2.50-2.08-2.27-2.10-2.86-3.73-3.89-4.03-3.86
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