Switch to:
bebe stores Inc (NAS:BEBE)
Beneish M-Score
-3.00 (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 -3.00 suggests that the company is not a manipulator.

BEBE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.03   Max: 2.87
Current: -3

-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 -2.61.


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 * 1.4435+0.528 * 1.0311+0.404 * 0.5079+0.892 * 0.9429+0.115 * 0.6813
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0469+4.679 * -0.1251-0.327 * 1.2051
=-3.00

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $8.4 Mil.
Revenue was 79.939 + 122.447 + 96.283 + 104.259 = $402.9 Mil.
Gross Profit was 22.971 + 41.68 + 27.863 + 36.316 = $128.8 Mil.
Total Current Assets was $79.2 Mil.
Total Assets was $160.1 Mil.
Property, Plant and Equipment(Net PPE) was $77.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.5 Mil.
Selling, General & Admin. Expense(SGA) was $182.7 Mil.
Total Current Liabilities was $37.7 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -29.968 + -5.458 + -17.141 + -5.225 = $-57.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -24.6 + 9.399 + -19.129 + -3.437 = $-37.8 Mil.
Accounts Receivable was $6.2 Mil.
Revenue was 92.668 + 128.914 + 102.156 + 103.569 = $427.3 Mil.
Gross Profit was 28.187 + 47.907 + 32.77 + 32.005 = $140.9 Mil.
Total Current Assets was $121.2 Mil.
Total Assets was $225.2 Mil.
Property, Plant and Equipment(Net PPE) was $93.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.4 Mil.
Selling, General & Admin. Expense(SGA) was $185.1 Mil.
Total Current Liabilities was $44.0 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)
=(8.447 / 402.928) / (6.206 / 427.307)
=0.02096404 / 0.01452352
=1.4435

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)
=(41.68 / 427.307) / (22.971 / 402.928)
=0.32966696 / 0.31973454
=1.0311

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 - (79.184 + 77.261) / 160.078) / (1 - (121.19 + 93.924) / 225.176)
=0.02269519 / 0.04468505
=0.5079

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
=402.928 / 427.307
=0.9429

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))
=(16.365 / (16.365 + 93.924)) / (21.512 / (21.512 + 77.261))
=0.14838288 / 0.21779231
=0.6813

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)
=(182.71 / 402.928) / (185.083 / 427.307)
=0.4534557 / 0.43313824
=1.0469

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 + 37.661) / 160.078) / ((0 + 43.959) / 225.176)
=0.23526656 / 0.19522063
=1.2051

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
=(-57.792 - 0 - -37.767) / 160.078
=-0.1251

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 -3.00 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 0.76361.02081.15470.73611.30940.94961.63530.84030.77841.4695
GMI 1.00351.03141.04571.13741.037210.97791.21751.00520.9579
AQI 1.32441.222510.95560.58290.92830.9380.88870.86620.35050.6959
SGI 1.13651.15861.02490.87690.84410.96921.07610.91310.87711.0068
DEPI 1.06380.97810.99540.82990.87251.04341.28230.87990.99571.0672
SGAI 1.05991.02711.06351.12711.06140.91780.9581.19741.07620.8551
LVGI 1.09360.86691.01471.06362.23140.40961.05681.31231.56230.8598
TATA -0.0374-0.0382-0.0538-0.0489-0.0774-0.0536-0.0467-0.2003-0.1594-0.0122
M-score -2.65-2.361.46-3.22-3.13-2.62-2.08-3.73-4.00-2.17

bebe stores Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.02870.64850.74390.99570.73971.31781.46950.97551.12151.4435
GMI 1.12691.07261.02461.05971.02891.00250.95790.94511.00411.0311
AQI 0.25150.33990.35050.30030.78340.74410.69590.98211.14820.5079
SGI 0.89650.86240.91780.9180.95621.01941.00681.00990.98110.9429
DEPI 0.87230.8980.99571.07021.12921.19441.06720.95110.79730.6813
SGAI 1.12941.11521.0931.05261.05390.97050.85510.8920.90831.0469
LVGI 1.42871.20831.56231.42521.46261.36580.85981.02341.01181.2051
TATA -0.2294-0.1343-0.1594-0.1468-0.1634-0.1339-0.0122-0.0493-0.0476-0.1251
M-score -4.03-3.88-3.98-3.64-3.74-2.99-2.17-2.76-2.56-3.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK