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bebe stores Inc (NAS:BEBE)
Beneish M-Score
-1.99 (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 -1.99 signals that the company is a manipulator.

BEBE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.03   Max: 2.87
Current: -1.99

-4.03
2.87

During the past 13 years, the highest Beneish M-Score of bebe stores Inc was 2.87. The lowest was -4.03. And the median was -2.56.


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 * 1.548+0.528 * 1.052+0.404 * 0.4423+0.892 * 0.911+0.115 * 0.7543
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0692+4.679 * 0.0548-0.327 * 0.8545
=-1.99

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $9.0 Mil.
Revenue was 87.238 + 94.925 + 79.939 + 122.447 = $384.5 Mil.
Gross Profit was 27.495 + 29.328 + 22.971 + 41.68 = $121.5 Mil.
Total Current Assets was $96.0 Mil.
Total Assets was $167.0 Mil.
Property, Plant and Equipment(Net PPE) was $67.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.7 Mil.
Selling, General & Admin. Expense(SGA) was $168.5 Mil.
Total Current Liabilities was $28.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -7.778 + 25.086 + -29.968 + -5.458 = $-18.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -7.765 + -4.311 + -24.6 + 9.399 = $-27.3 Mil.
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.



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)
=(8.956 / 384.549) / (6.351 / 422.124)
=0.02328962 / 0.01504534
=1.548

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)
=(140.273 / 422.124) / (121.474 / 384.549)
=0.33230283 / 0.31588692
=1.052

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 - (96.048 + 67.516) / 167.012) / (1 - (97.108 + 89.804) / 196.063)
=0.02064522 / 0.04667377
=0.4423

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
=384.549 / 422.124
=0.911

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))
=(18.473 / (18.473 + 89.804)) / (19.736 / (19.736 + 67.516))
=0.17060872 / 0.22619539
=0.7543

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)
=(168.544 / 384.549) / (173.04 / 422.124)
=0.43829005 / 0.40992694
=1.0692

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 + 28.769) / 167.012) / ((0 + 39.524) / 196.063)
=0.17225708 / 0.20158826
=0.8545

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
=(-18.118 - 0 - -27.277) / 167.012
=0.0548

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 -1.99 signals that the company is likely to 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 local exchange's currency.

bebe stores Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 1.02081.15470.73611.38860.89541.66990.86110.74391.46951.2981
GMI 1.03141.04571.13740.99821.0390.96831.20621.02460.95791.0958
AQI 1.222510.95560.58290.92830.9380.88870.86620.35050.69590.4697
SGI 1.15861.02490.87690.79591.02781.05390.8910.91781.00680.9196
DEPI 0.97810.99540.82990.87251.04341.28230.87990.99571.06720.7447
SGAI 1.02711.06351.12710.98670.98730.9541.18391.0930.85511.1349
LVGI 0.86691.01471.06362.23140.40961.05681.31231.56230.85980.9685
TATA -0.0382-0.0538-0.0489-0.0774-0.0536-0.0467-0.2003-0.1594-0.01220.0622
M-score -2.361.46-3.22-3.11-2.61-2.07-3.73-3.98-2.17-2.19

bebe stores Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.74390.99570.73971.31781.46950.97551.12151.44351.29811.548
GMI 1.02461.05971.02891.00250.95790.94511.00411.03111.09581.052
AQI 0.35050.30030.78340.74410.69590.98211.14820.50790.46970.4423
SGI 0.91780.9180.95621.01941.00681.00990.98110.94290.91960.911
DEPI 0.99571.07021.12921.19441.06720.95110.79730.68130.74470.7543
SGAI 1.0931.05261.05390.97050.85510.8920.90831.04691.13491.0692
LVGI 1.56231.42521.46261.36580.85981.02341.01181.20510.96850.8545
TATA -0.1594-0.1468-0.1634-0.1339-0.0122-0.0493-0.0476-0.12510.06220.0548
M-score -3.98-3.64-3.74-2.99-2.17-2.76-2.56-3.00-2.19-1.99
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