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bebe stores Inc (NAS:BEBE)
Beneish M-Score
-3.54 (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 -3.54 suggests that the company is not a manipulator.

BEBE' s 10-Year Beneish M-Score Range
Min: -3.98   Max: 1.46
Current: -3.54

-3.98
1.46

During the past 13 years, the highest Beneish M-Score of bebe stores Inc was 1.46. The lowest was -3.98. And the median was -2.68.


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+0.528 * 0.9579+0.404 * 0.6959+0.892 * 1.0068+0.115 * 1.4845
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8551+4.679 * -0.027-0.327 * 0.8598
=-3.54

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $0.0 Mil.
Revenue was 104.259 + 92.668 + 128.914 + 102.156 = $428.0 Mil.
Gross Profit was 36.316 + 28.187 + 47.907 + 32.77 = $145.2 Mil.
Total Current Assets was $114.0 Mil.
Total Assets was $216.4 Mil.
Property, Plant and Equipment(Net PPE) was $93.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.2 Mil.
Selling, General & Admin. Expense(SGA) was $170.3 Mil.
Total Current Liabilities was $40.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -5.226 + -11.246 + -0.385 + -10.817 = $-27.7 Mil.
Non Operating Income was -0.22 + 0 + 0 + 0 = $-0.2 Mil.
Cash Flow from Operations was 0 + -16.885 + 15.116 + -19.834 = $-21.6 Mil.
Accounts Receivable was $4.8 Mil.
Revenue was 103.569 + 89.019 + 123.261 + 109.268 = $425.1 Mil.
Gross Profit was 32.005 + 24.5 + 42 + 39.622 = $138.1 Mil.
Total Current Assets was $160.3 Mil.
Total Assets was $270.4 Mil.
Property, Plant and Equipment(Net PPE) was $93.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.4 Mil.
Selling, General & Admin. Expense(SGA) was $197.8 Mil.
Total Current Liabilities was $59.3 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)
=(0 / 427.997) / (4.814 / 425.117)
=0 / 0.01132394
=0

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)
=(28.187 / 425.117) / (36.316 / 427.997)
=0.32491526 / 0.33920799
=0.9579

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 - (114.04 + 93.229) / 216.413) / (1 - (160.299 + 93.64) / 270.355)
=0.04225254 / 0.06072016
=0.6959

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
=427.997 / 425.117
=1.0068

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))
=(19.379 / (19.379 + 93.64)) / (12.175 / (12.175 + 93.229))
=0.17146674 / 0.11550795
=1.4845

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)
=(170.278 / 427.997) / (197.795 / 425.117)
=0.39784858 / 0.46527191
=0.8551

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 + 40.812) / 216.413) / ((0 + 59.299) / 270.355)
=0.18858387 / 0.21933754
=0.8598

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
=(-27.674 - -0.22 - -21.603) / 216.413
=-0.027

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 -3.54 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 0.76361.02081.15470.73611.38860.89541.63530.87930.7439
GMI 1.00351.03141.04571.13740.99821.0390.97791.19441.0246
AQI 1.32441.222510.95560.58290.92830.9380.88870.86620.3505
SGI 1.13651.15861.02490.87690.79591.02781.07610.87250.9178
DEPI 1.06380.97810.99540.82990.87251.04341.28230.87990.9957
SGAI 1.05991.02711.06351.12710.98670.98730.9581.1791.093
LVGI 1.09360.86691.01471.06362.23140.40961.05681.31231.5623
TATA -0.0582-0.0598-0.0538-0.0489-0.0774-0.0536-0.0467-0.2003-0.1594
M-score -2.75-2.461.46-3.22-3.11-2.61-2.08-3.74-3.98

bebe stores Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.42590.87930.91731.05160.66320.74390.99570.73971.31780
GMI 1.13861.19441.16851.11621.06311.02461.05971.02891.00250.9579
AQI 0.77170.86620.77670.25150.33990.35050.30030.78340.74410.6959
SGI 0.9350.87250.87290.8770.84330.91780.9180.95621.01941.0068
DEPI 1.11260.87990.84570.87230.8980.99571.07021.12921.19441.4845
SGAI 1.11731.1791.19351.12631.11331.0931.05261.05390.97050.8551
LVGI 1.11461.31231.37421.42871.20831.56231.42521.46261.36580.8598
TATA -0.14-0.2002-0.2257-0.2294-0.1343-0.1594-0.1468-0.1634-0.1339-0.027
M-score -2.86-3.74-3.90-4.03-3.89-3.98-3.64-3.74-2.99-3.54
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