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bebe stores Inc (NAS:BEBE)
Beneish M-Score
-3.64 (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 -3.64 suggests that the company is not a manipulator.

BEBE' s 10-Year Beneish M-Score Range
Min: -4.03   Max: 2.74
Current: -3.64

-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 * 1.0074+0.528 * 1.0554+0.404 * 0.3003+0.892 * 0.9073+0.115 * 1.0702
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0525+4.679 * -0.1468-0.327 * 1.4252
=-3.64

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $6.4 Mil.
Revenue was 102.156 + 87.546 + 93.47 + 129.974 = $413.1 Mil.
Gross Profit was 32.77 + 28.56 + 25.292 + 43.655 = $130.3 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 $189.8 Mil.
Total Current Liabilities was $48.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -10.817 + -34.486 + -24.276 + -5.465 = $-75.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -19.834 + -5.184 + -19.861 + 5.984 = $-38.9 Mil.
Accounts Receivable was $7.1 Mil.
Revenue was 109.268 + 97.638 + 112.905 + 135.535 = $455.3 Mil.
Gross Profit was 39.622 + 32.414 + 33.578 + 45.928 = $151.5 Mil.
Total Current Assets was $177.8 Mil.
Total Assets was $332.8 Mil.
Property, Plant and Equipment(Net PPE) was $102.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.5 Mil.
Selling, General & Admin. Expense(SGA) was $198.8 Mil.
Total Current Liabilities was $46.0 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)
=(6.447 / 413.146) / (7.053 / 455.346)
=0.01560465 / 0.01548932
=1.0074

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)
=(28.56 / 455.346) / (32.77 / 413.146)
=0.33280626 / 0.31532921
=1.0554

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 - (140.384 + 94.118) / 246.203) / (1 - (177.77 + 102.362) / 332.805)
=0.04752582 / 0.15826986
=0.3003

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
=413.146 / 455.346
=0.9073

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))
=(21.512 / (21.512 + 102.362)) / (18.23 / (18.23 + 94.118))
=0.17366033 / 0.16226368
=1.0702

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)
=(189.846 / 413.146) / (198.798 / 455.346)
=0.4595131 / 0.43658668
=1.0525

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 + 48.496) / 246.203) / ((0 + 45.997) / 332.805)
=0.19697567 / 0.13821006
=1.4252

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
=(-75.044 - 0 - -38.895) / 246.203
=-0.1468

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 -3.64 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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 1.64310.76361.02081.15470.73611.30940.94961.63530.87930.7439
GMI 0.94681.00351.03141.04571.13741.037210.97791.19441.0246
AQI 0.61311.32441.222510.95570.58290.92830.9380.88870.86620.3505
SGI 1.36881.13651.15861.02490.87690.84410.96921.07610.87250.9178
DEPI 1.09591.06380.97810.99540.82990.87251.04341.28230.87990.9957
SGAI 0.90271.05991.02711.06351.12711.06140.91780.9581.1791.093
LVGI 0.94141.09360.86691.01471.06362.23140.40961.05681.31231.5623
TATA -0.0746-0.0582-0.0598-0.0812-0.0489-0.0774-0.0536-0.0467-0.2003-0.1594
M-score -2.05-2.75-2.461.33-3.22-3.13-2.62-2.08-3.74-3.98

bebe stores Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.64411.30741.41371.42590.87930.91731.03590.6460.75251.0074
GMI 0.96970.99771.06581.13861.19441.16851.12051.07241.02031.0554
AQI 0.88870.90550.93870.77170.86620.77670.25150.33990.35050.3003
SGI 1.07041.03440.97140.9350.87250.87290.89030.86580.90740.9073
DEPI 1.28231.29541.2191.11260.87990.84570.87230.8980.99571.0702
SGAI 0.95740.98851.06051.11731.1791.19351.12541.11381.0931.0525
LVGI 1.05680.96390.93491.11461.31231.37421.42871.20831.56231.4252
TATA -0.0467-0.0249-0.0052-0.14-0.2002-0.2257-0.2294-0.1343-0.1594-0.1468
M-score -2.08-2.27-2.10-2.86-3.74-3.90-4.03-3.88-3.99-3.64
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