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Buckle, Inc. (NYSE:BKE)
Beneish M-Score
-2.75 (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 -2.31 suggests that the company is not a manipulator.

BKE' s 10-Year Beneish M-Score Range
Min: -3.78   Max: 4.32
Current: -2.75

-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 -2.66.


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 * 1.24+0.528 * 1.0039+0.404 * 1.0497+0.892 * 1.0036+0.115 * 1.0067
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0006+4.679 * -0.0273-0.327 * 0.8371
=-2.31

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
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.
Net Income was 59.304 + 40.584 + 25.144 + 37.552 = $163 Mil.
Non Operating Income was 2.244 + 0.361 + 0.507 + 0.35 = $3 Mil.
Cash Flow from Operations was 104.706 + 43.143 + 5.036 + 21.141 = $174 Mil.
Accounts Receivable was $3 Mil.
Revenue was 360.615 + 284.147 + 215.483 + 263.762 = $1,124 Mil.
Gross Profit was 173.202 + 125.415 + 86.503 + 114.195 = $499 Mil.
Total Current Assets was $277 Mil.
Total Assets was $478 Mil.
Property, Plant and Equipment(Net PPE) was $163 Mil.
Depreciation, Depletion and Amortization(DDA) was $34 Mil.
Selling, General & Admin. Expense(SGA) was $241 Mil.
Total Current Liabilities was $129 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)
=(4.318 / 1128.001) / (3.47 / 1124.007)
=0.00382801 / 0.00308717
=1.24

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)
=(126.225 / 1124.007) / (161.426 / 1128.001)
=0.44422766 / 0.44250404
=1.0039

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 - (342.137 + 158.569) / 546.293) / (1 - (276.873 + 163.103) / 477.974)
=0.08344789 / 0.07949805
=1.0497

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
=1128.001 / 1124.007
=1.0036

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))
=(33.834 / (33.834 + 163.103)) / (32.631 / (32.631 + 158.569))
=0.17180113 / 0.17066423
=1.0067

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)
=(242.151 / 1128.001) / (241.14 / 1124.007)
=0.21467268 / 0.21453603
=1.0006

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 + 123.381) / 546.293) / ((0 + 128.956) / 477.974)
=0.22585133 / 0.2697971
=0.8371

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
=(162.584 - 3.462 - 174.026) / 546.293
=-0.0273

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 -2.31 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.

Buckle, Inc. Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.47262.40260.79290.59181.04371.63191.96550.28520.71591.24
GMI 0.93030.93760.99010.95250.94680.97241.01071.00080.99251.0039
AQI 0.7431.02880.82931.95940.6891.19610.87410.57530.99711.0497
SGI 1.11381.06411.05781.16941.27771.13411.05741.11911.05741.0036
DEPI 0.93231.11540.87491.14681.05611.07450.97820.92150.94521.0067
SGAI 1.02011.02811.03030.96590.97910.97830.97960.99640.98151.0006
LVGI 1.10161.06921.10831.28221.12140.97951.03461.0611.30570.8371
TATA -0.0834-0.0811-0.0708-0.1221-0.0902-0.0722-0.0994-0.1166-0.1259-0.0273
M-score -3.44-1.55-3.08-2.98-2.80-2.03-2.06-3.78-3.39-2.31

Buckle, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 1.64520.28520.87570.75420.87280.71591.01590.84690.95241.24
GMI 0.99661.00080.99521.00240.99710.99250.99390.98890.99371.0039
AQI 0.76740.57530.58470.58790.53770.99711.02931.21281.28661.0497
SGI 1.11691.11911.11431.0911.06951.05741.03991.05261.04471.0036
DEPI 0.9090.92150.94410.94160.93690.94520.96260.97370.99521.0067
SGAI 0.99920.99640.99960.98520.97920.98150.98520.99431.00951.0006
LVGI 1.38591.0610.96810.94370.77031.30571.28441.37981.22330.8371
TATA -0.0859-0.1166-0.103-0.1022-0.0994-0.1259-0.0872-0.1024-0.0654-0.0273
M-score -2.42-3.78-3.14-3.25-3.12-3.39-2.92-3.10-2.75-2.31
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