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Big Lots Inc (NYSE:BIG)
Beneish M-Score
-2.89 (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 -2.89 suggests that the company is not a manipulator.

BIG' s 10-Year Beneish M-Score Range
Min: -3.99   Max: 5.89
Current: -2.89

-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 -2.75.


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 * 0.9799+0.404 * 1.1613+0.892 * 1.0072+0.115 * 0.9705
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0135+4.679 * -0.0975-0.327 * 1.0202
=-2.89

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $0 Mil.
Revenue was 1280.455 + 1593.349 + 1107.095 + 1195.363 = $5,176 Mil.
Gross Profit was 504.116 + 649.929 + 430.942 + 469.527 = $2,055 Mil.
Total Current Assets was $1,022 Mil.
Total Assets was $1,649 Mil.
Property, Plant and Equipment(Net PPE) was $567 Mil.
Depreciation, Depletion and Amortization(DDA) was $108 Mil.
Selling, General & Admin. Expense(SGA) was $1,702 Mil.
Total Current Liabilities was $612 Mil.
Long-Term Debt was $41 Mil.
Net Income was 32.213 + 94.431 + -3.441 + 19.938 = $143 Mil.
Non Operating Income was 0.028 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 87.525 + 256.184 + -94.791 + 55.003 = $304 Mil.
Accounts Receivable was $0 Mil.
Revenue was 1281.271 + 1571.912 + 1104.918 + 1180.905 = $5,139 Mil.
Gross Profit was 493.556 + 609.631 + 431.428 + 464.115 = $1,999 Mil.
Total Current Assets was $1,049 Mil.
Total Assets was $1,659 Mil.
Property, Plant and Equipment(Net PPE) was $558 Mil.
Depreciation, Depletion and Amortization(DDA) was $103 Mil.
Selling, General & Admin. Expense(SGA) was $1,668 Mil.
Total Current Liabilities was $590 Mil.
Long-Term Debt was $54 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 / 5176.262) / (0 / 5139.006)
=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)
=(649.929 / 5139.006) / (504.116 / 5176.262)
=0.38893319 / 0.39691074
=0.9799

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 - (1021.519 + 566.939) / 1648.812) / (1 - (1049.093 + 557.675) / 1659.062)
=0.03660454 / 0.03152022
=1.1613

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
=5176.262 / 5139.006
=1.0072

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))
=(102.882 / (102.882 + 557.675)) / (108.377 / (108.377 + 566.939))
=0.15575037 / 0.16048339
=0.9705

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)
=(1702.464 / 5176.262) / (1667.675 / 5139.006)
=0.32889834 / 0.32451315
=1.0135

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)
=((40.5 + 612.313) / 1648.812) / ((53.6 + 590.253) / 1659.062)
=0.39592931 / 0.38808254
=1.0202

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
=(143.141 - 0.028 - 303.921) / 1648.812
=-0.0975

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 -2.89 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

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1111111111
GMI 1.01121.00691.00510.99531.00481.01221.01271.01850.99210.9799
AQI 1.05011.20741.20241.30520.70930.69710.77140.77321.0211.1613
SGI 1.03171.01330.99670.99190.95480.96240.97190.97771.01021.0072
DEPI 0.9110.92040.93770.96170.9120.91970.89390.92850.94330.9705
SGAI 1.01291.00940.99930.99961.02021.01711.02171.01981.01121.0135
LVGI 1.15191.03290.86920.86520.82380.90510.9041.02281.05611.0202
TATA -0.0593-0.0271-0.0609-0.0397-0.042-0.0868-0.1068-0.1177-0.1249-0.0975
M-score -2.77-2.53-2.65-2.51-2.79-3.02-3.07-3.15-3.08-2.89
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