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Buckle, Inc. (NYSE:BKE)
Beneish M-Score
-2.11 (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 -2.11 signals that the company is a manipulator.

BKE' s 10-Year Beneish M-Score Range
Min: -3.78   Max: 4.32
Current: -2.11

-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 -2.59.


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 * 1.6753+0.528 * 1.0093+0.404 * 0.988+0.892 * 0.9904+0.115 * 1.065
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9852+4.679 * -0.061-0.327 * 0.8957
=-2.11

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $13 Mil.
Revenue was 292.201 + 235.725 + 271.675 + 338.999 = $1,139 Mil.
Gross Profit was 127.792 + 94.925 + 117.2 + 161.426 = $501 Mil.
Total Current Assets was $400 Mil.
Total Assets was $618 Mil.
Property, Plant and Equipment(Net PPE) was $171 Mil.
Depreciation, Depletion and Amortization(DDA) was $32 Mil.
Selling, General & Admin. Expense(SGA) was $245 Mil.
Total Current Liabilities was $115 Mil.
Long-Term Debt was $0 Mil.
Net Income was 40.616 + 24.473 + 37.342 + 59.304 = $162 Mil.
Non Operating Income was 0.226 + 0.26 + 0.345 + 2.244 = $3 Mil.
Cash Flow from Operations was 45.99 + 15.746 + 29.912 + 104.706 = $196 Mil.
Accounts Receivable was $8 Mil.
Revenue was 286.761 + 232.529 + 269.712 + 360.615 = $1,150 Mil.
Gross Profit was 126.225 + 94.487 + 117.007 + 173.202 = $511 Mil.
Total Current Assets was $339 Mil.
Total Assets was $546 Mil.
Property, Plant and Equipment(Net PPE) was $165 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General & Admin. Expense(SGA) was $251 Mil.
Total Current Liabilities was $113 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)
=(13.052 / 1138.6) / (7.866 / 1149.617)
=0.0114632 / 0.00684228
=1.6753

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)
=(94.925 / 1149.617) / (127.792 / 1138.6)
=0.44442714 / 0.4403153
=1.0093

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 - (400.018 + 171.312) / 617.653) / (1 - (339.469 + 164.886) / 545.783)
=0.07499842 / 0.07590563
=0.988

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
=1138.6 / 1149.617
=0.9904

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))
=(33.105 / (33.105 + 164.886)) / (31.904 / (31.904 + 171.312))
=0.16720457 / 0.15699551
=1.065

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)
=(244.531 / 1138.6) / (250.603 / 1149.617)
=0.21476462 / 0.21798825
=0.9852

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 + 114.924) / 617.653) / ((0 + 113.373) / 545.783)
=0.18606564 / 0.20772541
=0.8957

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
=(161.735 - 3.075 - 196.354) / 617.653
=-0.061

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 -2.11 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

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

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 0.75420.87280.71591.01590.84690.95241.241.15711.81641.6753
GMI 1.00240.99710.99250.99390.98890.99371.00391.00561.00841.0093
AQI 0.58790.53770.99711.02931.21281.28661.04971.10160.9780.988
SGI 1.0911.06951.05741.03991.05261.04471.003610.98790.9904
DEPI 0.94160.93690.94520.96260.97370.99521.00671.00631.0291.065
SGAI 0.98520.97920.98150.98520.99431.00951.00060.99860.99490.9852
LVGI 0.94370.77031.30571.28441.37981.22330.83710.84780.83730.8957
TATA -0.1022-0.0994-0.1259-0.0872-0.1024-0.0654-0.0273-0.0432-0.0614-0.061
M-score -3.25-3.12-3.39-2.92-3.10-2.75-2.31-2.44-1.97-2.11
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