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Buckle, Inc. (NYSE:BKE)
Beneish M-Score
-1.89 (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.

Buckle, Inc. has a M-score of -1.89 signals that the company is a manipulator.

BKE' s 10-Year Beneish M-Score Range
Min: -3.78   Max: 2.44
Current: -1.89

-3.78
2.44

During the past 13 years, the highest Beneish M-Score of Buckle, Inc. was 2.44. The lowest was -3.78. And the median was -2.43.


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 Buckle, 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 * 1.9408+0.528 * 1.0058+0.404 * 1.0095+0.892 * 1.0223+0.115 * 1.1009
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0114+4.679 * -0.0662-0.327 * 0.997
=-1.89

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $9 Mil.
Revenue was 353.541 + 292.201 + 235.725 + 271.675 = $1,153 Mil.
Gross Profit was 167.415 + 127.792 + 94.925 + 117.2 = $507 Mil.
Total Current Assets was $325 Mil.
Total Assets was $543 Mil.
Property, Plant and Equipment(Net PPE) was $173 Mil.
Depreciation, Depletion and Amortization(DDA) was $32 Mil.
Selling, General & Admin. Expense(SGA) was $250 Mil.
Total Current Liabilities was $122 Mil.
Long-Term Debt was $0 Mil.
Net Income was 60.133 + 40.616 + 24.473 + 37.342 = $163 Mil.
Non Operating Income was 1.892 + 0.226 + 0.26 + 0.345 = $3 Mil.
Cash Flow from Operations was 104.12 + 45.99 + 15.746 + 29.912 = $196 Mil.
Accounts Receivable was $4 Mil.
Revenue was 338.999 + 286.761 + 232.529 + 269.712 = $1,128 Mil.
Gross Profit was 161.426 + 126.225 + 94.487 + 117.007 = $499 Mil.
Total Current Assets was $342 Mil.
Total Assets was $546 Mil.
Property, Plant and Equipment(Net PPE) was $159 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General & Admin. Expense(SGA) was $242 Mil.
Total Current Liabilities was $123 Mil.
Long-Term Debt was $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)
=(8.567 / 1153.142) / (4.318 / 1128.001)
=0.00742927 / 0.00382801
=1.9408

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)
=(127.792 / 1128.001) / (167.415 / 1153.142)
=0.44250404 / 0.43995622
=1.0058

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 - (324.589 + 172.663) / 542.993) / (1 - (342.137 + 158.569) / 546.293)
=0.08423866 / 0.08344789
=1.0095

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
=1153.142 / 1128.001
=1.0223

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))
=(32.631 / (32.631 + 158.569)) / (31.679 / (31.679 + 172.663))
=0.17066423 / 0.15502931
=1.1009

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)
=(250.359 / 1153.142) / (242.151 / 1128.001)
=0.2171103 / 0.21467268
=1.0114

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 + 122.271) / 542.993) / ((0 + 123.381) / 546.293)
=0.2251797 / 0.22585133
=0.997

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
=(162.564 - 2.723 - 195.768) / 542.993
=-0.0662

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.

Buckle, Inc. has a M-score of -1.89 signals that the company is likely to 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.

Buckle, Inc. Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 2.40260.79290.59181.04371.63191.96550.28520.71591.241.9408
GMI 0.93760.99010.95250.94680.97241.01071.00080.99251.00391.0058
AQI 1.02880.82931.95940.6891.19610.87410.57530.99711.04971.0095
SGI 1.06411.05781.16941.27771.13411.05741.11911.05741.00361.0223
DEPI 1.11540.87491.14681.05611.07450.97820.92150.94521.00671.1009
SGAI 1.02811.03030.96590.97910.97830.97960.99640.98151.00061.0114
LVGI 1.06921.10831.28221.12140.97951.03461.0611.30570.83710.997
TATA -0.0811-0.0708-0.1221-0.0902-0.0722-0.0994-0.1166-0.1259-0.0273-0.0662
M-score -1.55-3.08-2.98-2.80-2.03-2.06-3.78-3.39-2.31-1.89

Buckle, Inc. Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 0.87280.71591.01590.84690.95241.241.15711.81641.67531.9408
GMI 0.99710.99250.99390.98890.99371.00391.00561.00841.00931.0058
AQI 0.53770.99711.02931.21281.28661.04971.10160.9780.9881.0095
SGI 1.06951.05741.03991.05261.04471.003610.98790.99041.0223
DEPI 0.93690.94520.96260.97370.99521.00671.00631.0291.0651.1009
SGAI 0.97920.98150.98520.99431.00951.00060.99860.99490.98521.0114
LVGI 0.77031.30571.28441.37981.22330.83710.84780.83730.89570.997
TATA -0.0994-0.1259-0.0872-0.1024-0.0654-0.0273-0.0432-0.0614-0.061-0.0662
M-score -3.12-3.39-2.92-3.10-2.75-2.31-2.44-1.97-2.11-1.89
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