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bebe stores Inc (NAS:BEBE)
Beneish M-Score
-2.76 (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 -2.76 suggests that the company is not a manipulator.

BEBE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.03   Max: 2.74
Current: -2.76

-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 -2.61.


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 * 0.9755+0.528 * 0.9451+0.404 * 0.9821+0.892 * 1.0099+0.115 * 0.9511
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.892+4.679 * -0.0493-0.327 * 1.0234
=-2.76

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $6.4 Mil.
Revenue was 96.283 + 104.259 + 92.668 + 128.914 = $422.1 Mil.
Gross Profit was 27.863 + 36.316 + 28.187 + 47.907 = $140.3 Mil.
Total Current Assets was $97.1 Mil.
Total Assets was $196.1 Mil.
Property, Plant and Equipment(Net PPE) was $89.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.5 Mil.
Selling, General & Admin. Expense(SGA) was $173.0 Mil.
Total Current Liabilities was $39.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -17.141 + -5.225 + -11.246 + -0.385 = $-34.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -19.129 + -3.437 + -16.885 + 15.116 = $-24.3 Mil.
Accounts Receivable was $6.4 Mil.
Revenue was 102.156 + 103.569 + 89.019 + 123.261 = $418.0 Mil.
Gross Profit was 32.77 + 32.005 + 24.5 + 42 = $131.3 Mil.
Total Current Assets was $140.4 Mil.
Total Assets was $246.2 Mil.
Property, Plant and Equipment(Net PPE) was $94.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.2 Mil.
Selling, General & Admin. Expense(SGA) was $192.1 Mil.
Total Current Liabilities was $48.5 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)
=(6.351 / 422.124) / (6.447 / 418.005)
=0.01504534 / 0.01542326
=0.9755

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)
=(36.316 / 418.005) / (27.863 / 422.124)
=0.31405127 / 0.33230283
=0.9451

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 - (97.108 + 89.804) / 196.063) / (1 - (140.384 + 94.118) / 246.203)
=0.04667377 / 0.04752582
=0.9821

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
=422.124 / 418.005
=1.0099

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))
=(18.23 / (18.23 + 94.118)) / (18.473 / (18.473 + 89.804))
=0.16226368 / 0.17060872
=0.9511

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)
=(173.04 / 422.124) / (192.099 / 418.005)
=0.40992694 / 0.45956149
=0.892

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 + 39.524) / 196.063) / ((0 + 48.496) / 246.203)
=0.20158826 / 0.19697567
=1.0234

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
=(-33.997 - 0 - -24.335) / 196.063
=-0.0493

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 -2.76 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 0.76361.02081.15470.73611.38860.89541.63530.87930.74391.4695
GMI 1.00351.03141.04571.13740.99821.0390.97791.19441.02460.9579
AQI 1.32441.222510.95560.58290.92830.9380.88870.86620.35050.6959
SGI 1.13651.15861.02490.87690.79591.02781.07610.87250.91781.0068
DEPI 1.06380.97810.99540.82990.87251.04341.28230.87990.99571.0672
SGAI 1.05991.02711.06351.12710.98670.98730.9581.1791.0930.8551
LVGI 1.09360.86691.01471.06362.23140.40961.05681.31231.56230.8598
TATA -0.0582-0.0598-0.0538-0.0489-0.0774-0.0536-0.0467-0.2003-0.1594-0.0122
M-score -2.75-2.461.46-3.22-3.11-2.61-2.08-3.74-3.98-2.17

bebe stores Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.87930.91731.05160.66320.74390.99570.73971.31781.46950.9755
GMI 1.19441.16851.11621.06311.02461.05971.02891.00250.95790.9451
AQI 0.86620.77670.25150.33990.35050.30030.78340.74410.69590.9821
SGI 0.87250.87290.8770.84330.91780.9180.95621.01941.00681.0099
DEPI 0.87990.84570.87230.8980.99571.07021.12921.19441.06720.9511
SGAI 1.1791.19351.12631.11331.0931.05261.05390.97050.85510.892
LVGI 1.31231.37421.42871.20831.56231.42521.46261.36580.85981.0234
TATA -0.2002-0.2257-0.2294-0.1343-0.1594-0.1468-0.1634-0.1339-0.0122-0.0493
M-score -3.74-3.90-4.03-3.89-3.98-3.64-3.74-2.99-2.17-2.76
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