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Big Lots Inc (NYSE:BIG)
Beneish M-Score
-2.97 (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 -2.97 suggests that the company is not a manipulator.

BIG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.99   Max: 5.89
Current: -2.97

-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 -2.77.


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 * 0.9763+0.404 * 0.8569+0.892 * 1.0086+0.115 * 0.985
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0108+4.679 * -0.0865-0.327 * 1.0472
=-2.97

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $0 Mil.
Revenue was 1116.474 + 1209.686 + 1280.455 + 1593.349 = $5,200 Mil.
Gross Profit was 440.007 + 475.834 + 504.116 + 649.929 = $2,070 Mil.
Total Current Assets was $1,267 Mil.
Total Assets was $1,889 Mil.
Property, Plant and Equipment(Net PPE) was $577 Mil.
Depreciation, Depletion and Amortization(DDA) was $109 Mil.
Selling, General & Admin. Expense(SGA) was $1,712 Mil.
Total Current Liabilities was $729 Mil.
Long-Term Debt was $335 Mil.
Net Income was -1.508 + 17.636 + 32.213 + 94.431 = $143 Mil.
Non Operating Income was -0.673 + -1.742 + 0.028 + 0 = $-2 Mil.
Cash Flow from Operations was -64.345 + 29.138 + 87.525 + 256.184 = $309 Mil.
Accounts Receivable was $0 Mil.
Revenue was 1107.095 + 1195.363 + 1281.271 + 1571.912 = $5,156 Mil.
Gross Profit was 430.942 + 469.527 + 493.556 + 609.631 = $2,004 Mil.
Total Current Assets was $1,313 Mil.
Total Assets was $1,934 Mil.
Property, Plant and Equipment(Net PPE) was $567 Mil.
Depreciation, Depletion and Amortization(DDA) was $105 Mil.
Selling, General & Admin. Expense(SGA) was $1,679 Mil.
Total Current Liabilities was $756 Mil.
Long-Term Debt was $283 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 / 5199.964) / (0 / 5155.641)
=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)
=(475.834 / 5155.641) / (440.007 / 5199.964)
=0.38863373 / 0.39805776
=0.9763

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 - (1267.278 + 576.563) / 1889.297) / (1 - (1312.722 + 566.889) / 1933.911)
=0.02405974 / 0.02807782
=0.8569

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
=5199.964 / 5155.641
=1.0086

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))
=(105.017 / (105.017 + 566.889)) / (108.74 / (108.74 + 576.563))
=0.15629716 / 0.15867434
=0.985

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)
=(1711.889 / 5199.964) / (1679.182 / 5155.641)
=0.3292117 / 0.32569801
=1.0108

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)
=((334.9 + 728.799) / 1889.297) / ((283.4 + 756.324) / 1933.911)
=0.56301312 / 0.53762764
=1.0472

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
=(142.772 - -2.387 - 308.502) / 1889.297
=-0.0865

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 -2.97 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 1111111111
GMI 1.04020.98021.0090.98850.98470.99921.02111.01121.00480.9921
AQI 1.01531.3051.29131.01090.66280.80151.42111.05010.70931.021
SGI 1.06761.07070.98170.99761.01751.04771.05051.03170.95481.0102
DEPI 0.82761.03161.08011.1251.031.02780.97820.9110.9120.9433
SGAI 0.98450.94930.95151.0080.98820.9820.9871.01291.02021.0112
LVGI 0.82461.01361.66860.78180.90371.02971.18491.15190.82381.0561
TATA -0.1336-0.1512-0.1054-0.0415-0.1148-0.0576-0.0678-0.0593-0.042-0.1249
M-score -2.98-3.00-3.07-2.59-3.11-2.79-2.63-2.77-2.79-3.08

Big Lots Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 1111111111
GMI 1.00510.99531.00481.01221.01271.01850.99210.97990.97950.9763
AQI 1.20241.30520.70930.69710.77140.77321.0211.16131.03530.8569
SGI 0.99670.99190.95480.96240.97190.97771.01021.00721.00721.0086
DEPI 0.93770.96170.9120.91970.89390.92850.94330.97051.00780.985
SGAI 0.99930.99961.02021.01711.02171.01981.01121.01351.00761.0108
LVGI 0.86920.86520.82380.90510.9041.02281.05611.02021.24731.0472
TATA -0.0609-0.0397-0.042-0.0868-0.1068-0.1177-0.1249-0.0975-0.0814-0.0865
M-score -2.65-2.51-2.79-3.02-3.07-3.15-3.08-2.89-2.93-2.97
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