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Big Lots Inc (NYSE:BIG)
Beneish M-Score
-3.06 (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.

Big Lots Inc has a M-score of -3.06 suggests that the company is not a manipulator.

BIG' s 10-Year Beneish M-Score Range
Min: -3.99   Max: 5.89
Current: -3.06

-3.99
5.89

During the past 13 years, the highest Beneish M-Score of Big Lots Inc was 5.89. The lowest was -3.99. And the median was -2.72.


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 Big Lots 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+0.528 * 1.0158+0.404 * 0.7714+0.892 * 0.9885+0.115 * 0.8939
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0396+4.679 * -0.1062-0.327 * 0.904
=-3.06

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $0 Mil.
Revenue was 1195.363 + 1281.271 + 1612.558 + 1152.444 = $5,242 Mil.
Gross Profit was 469.527 + 493.556 + 625.763 + 443.459 = $2,032 Mil.
Total Current Assets was $1,037 Mil.
Total Assets was $1,642 Mil.
Property, Plant and Equipment(Net PPE) was $551 Mil.
Depreciation, Depletion and Amortization(DDA) was $104 Mil.
Selling, General & Admin. Expense(SGA) was $1,738 Mil.
Total Current Liabilities was $591 Mil.
Long-Term Debt was $57 Mil.
Net Income was 19.938 + 3.348 + 84.353 + -9.517 = $98 Mil.
Non Operating Income was 0 + 0 + -0.802 + -0.147 = $-1 Mil.
Cash Flow from Operations was 55.003 + 102.166 + 269.432 + -153.116 = $273 Mil.
Accounts Receivable was $0 Mil.
Revenue was 1180.905 + 1267.02 + 1720.442 + 1134.205 = $5,303 Mil.
Gross Profit was 464.115 + 502.195 + 689.455 + 432.59 = $2,088 Mil.
Total Current Assets was $1,131 Mil.
Total Assets was $1,801 Mil.
Property, Plant and Equipment(Net PPE) was $593 Mil.
Depreciation, Depletion and Amortization(DDA) was $98 Mil.
Selling, General & Admin. Expense(SGA) was $1,692 Mil.
Total Current Liabilities was $643 Mil.
Long-Term Debt was $142 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 / 5241.636) / (0 / 5302.572)
=0 / 0
=1

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)
=(493.556 / 5302.572) / (469.527 / 5241.636)
=0.39383812 / 0.38772341
=1.0158

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 - (1036.777 + 551.452) / 1642.392) / (1 - (1131.362 + 592.945) / 1801.311)
=0.03297812 / 0.04274886
=0.7714

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
=5241.636 / 5302.572
=0.9885

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))
=(98.333 / (98.333 + 592.945)) / (104.359 / (104.359 + 551.452))
=0.14224813 / 0.15912969
=0.8939

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)
=(1738.471 / 5241.636) / (1691.612 / 5302.572)
=0.33166572 / 0.31901726
=1.0396

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)
=((56.5 + 590.691) / 1642.392) / ((141.7 + 643.476) / 1801.311)
=0.39405392 / 0.43589141
=0.904

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
=(98.122 - -0.949 - 273.485) / 1642.392
=-0.1062

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.

Big Lots Inc has a M-score of -3.06 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.

Big Lots Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0111111111
GMI 1.02961.04020.98021.0090.98850.98470.99921.02111.01121.0103
AQI 1.17521.01531.3051.29131.01090.66280.80151.42111.05010.7093
SGI 1.05241.06761.07070.98170.99761.01751.04771.05051.03170.9878
DEPI 0.95270.82761.03161.08011.1251.031.02780.97820.9110.912
SGAI 1.00250.98450.94930.95151.0080.98820.9820.9871.01291.0429
LVGI 0.95820.82461.01361.66860.78180.90371.02971.18491.15190.8238
TATA -0.0134-0.1336-0.1512-0.1054-0.0415-0.1148-0.0576-0.0678-0.0593-0.0413
M-score -3.32-2.98-3.00-3.07-2.59-3.11-2.79-2.63-2.77-2.76

Big Lots Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 1111111111
GMI 1.02281.01821.01461.01121.00691.00510.99851.00791.01521.0158
AQI 1.24680.76950.75651.05011.20741.20241.30520.70930.69710.7714
SGI 1.06581.07071.05241.03171.01330.99671.00080.97130.97890.9885
DEPI 0.95370.93240.8270.9110.92040.93770.96170.9120.91970.8939
SGAI 0.99491.01061.00831.01291.00940.99931.00281.03841.03511.0396
LVGI 1.19451.27161.13171.15191.03290.86920.86520.82380.90510.904
TATA -0.0733-0.0664-0.0443-0.0593-0.0271-0.0609-0.0396-0.0414-0.0862-0.1062
M-score -2.72-2.91-2.80-2.77-2.53-2.65-2.50-2.77-3.00-3.06
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