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Buckle Inc (NYSE:BKE)
Beneish M-Score
-2.82 (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 -2.91 suggests that the company is not a manipulator.

BKE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.78   Max: 4.32
Current: -2.82

-3.78
4.32

During the past 13 years, the highest Beneish M-Score of Buckle Inc was 4.32. The lowest was -3.78. And the median was -2.56.


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 * 1.1415+0.528 * 1.041+0.404 * 0.6291+0.892 * 0.9261+0.115 * 0.9684
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0513+4.679 * -0.0852-0.327 * 0.873
=-2.91

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $17 Mil.
Revenue was 212.157 + 243.543 + 332.031 + 280.187 = $1,068 Mil.
Gross Profit was 79.882 + 94.729 + 155.945 + 117.264 = $448 Mil.
Total Current Assets was $374 Mil.
Total Assets was $580 Mil.
Property, Plant and Equipment(Net PPE) was $174 Mil.
Depreciation, Depletion and Amortization(DDA) was $32 Mil.
Selling, General & Admin. Expense(SGA) was $248 Mil.
Total Current Liabilities was $95 Mil.
Long-Term Debt was $0 Mil.
Net Income was 15.472 + 23.097 + 54.339 + 35.893 = $129 Mil.
Non Operating Income was 0.595 + 0.408 + 3.277 + 0.951 = $5 Mil.
Cash Flow from Operations was 32.13 + 12.319 + 105.731 + 22.828 = $173 Mil.
Accounts Receivable was $16 Mil.
Revenue was 236.053 + 271.345 + 353.541 + 292.201 = $1,153 Mil.
Gross Profit was 94.595 + 113.597 + 167.415 + 127.792 = $503 Mil.
Total Current Assets was $337 Mil.
Total Assets was $565 Mil.
Property, Plant and Equipment(Net PPE) was $178 Mil.
Depreciation, Depletion and Amortization(DDA) was $32 Mil.
Selling, General & Admin. Expense(SGA) was $254 Mil.
Total Current Liabilities was $106 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)
=(16.954 / 1067.918) / (16.037 / 1153.14)
=0.01587575 / 0.01390724
=1.1415

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)
=(503.399 / 1153.14) / (447.82 / 1067.918)
=0.4365463 / 0.41933931
=1.041

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 - (373.87 + 173.527) / 579.967) / (1 - (336.829 + 177.658) / 564.92)
=0.05615837 / 0.08927459
=0.6291

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
=1067.918 / 1153.14
=0.9261

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))
=(31.992 / (31.992 + 177.658)) / (32.459 / (32.459 + 173.527))
=0.15259719 / 0.15757867
=0.9684

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)
=(247.702 / 1067.918) / (254.427 / 1153.14)
=0.23194852 / 0.22063843
=1.0513

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 + 95.23) / 579.967) / ((0 + 106.253) / 564.92)
=0.164199 / 0.18808504
=0.873

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
=(128.801 - 5.231 - 173.008) / 579.967
=-0.0852

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 -2.91 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 local exchange's currency.

Buckle Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.79290.59181.04371.63191.96550.28520.71591.241.94081.1603
GMI 0.99010.95250.94680.97241.01071.00080.99251.00391.00581.0232
AQI 0.82931.95940.6891.19610.87410.57530.99711.04971.00950.7688
SGI 1.05781.16941.27771.13411.05741.11911.05741.00361.02230.9709
DEPI 0.87491.14681.05611.07450.97820.92150.94521.00671.10090.9884
SGAI 1.03030.96590.97910.97830.97960.99640.98151.00061.01141.0359
LVGI 1.10831.28221.12140.97951.03461.0611.30570.83710.9970.8345
TATA -0.0708-0.1221-0.0902-0.0722-0.0994-0.1166-0.1259-0.0273-0.0662-0.0302
M-score -3.08-2.98-2.80-2.03-2.06-3.78-3.39-2.31-1.89-2.53

Buckle Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
DSRI 1.81641.67531.94081.34431.27550.98271.16031.41051.14151.1606
GMI 1.00841.00931.00581.01131.01031.01941.02321.03141.0411.0377
AQI 0.9780.9881.00950.99491.10641.0010.76880.71450.62910.5652
SGI 0.98790.99041.02231.02021.01761.00220.97090.94710.92610.8999
DEPI 1.0291.0651.10091.09891.06521.03120.98840.96670.96841.2316
SGAI 0.99490.98521.01141.02371.02691.02891.03591.03981.05131.0875
LVGI 0.83730.89570.9971.0241.07520.98840.83450.8170.8730.8157
TATA -0.0614-0.061-0.0662-0.0586-0.0464-0.0144-0.0302-0.0318-0.0852-0.0665
M-score -1.97-2.11-1.89-2.42-2.40-2.55-2.53-2.35-2.91-2.82
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