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Bon-Ton Stores Inc (NAS:BONT)
Beneish M-Score
-2.74 (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.

Bon-Ton Stores Inc has a M-score of -2.74 suggests that the company is not a manipulator.

BONT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.15   Max: 71.67
Current: -2.74

-4.15
71.67

During the past 13 years, the highest Beneish M-Score of Bon-Ton Stores Inc was 71.67. The lowest was -4.15. And the median was -2.69.


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 Bon-Ton Stores 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 * 1.0252+0.528 * 1.0234+0.404 * 0.8464+0.892 * 0.9882+0.115 * 0.9752
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0104+4.679 * -0.0441-0.327 * 1.0379
=-2.74

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $61 Mil.
Revenue was 950.359 + 640.897 + 570.999 + 627.242 = $2,789 Mil.
Gross Profit was 344.962 + 225.872 + 220.171 + 222.777 = $1,014 Mil.
Total Current Assets was $816 Mil.
Total Assets was $1,557 Mil.
Property, Plant and Equipment(Net PPE) was $635 Mil.
Depreciation, Depletion and Amortization(DDA) was $92 Mil.
Selling, General & Admin. Expense(SGA) was $906 Mil.
Total Current Liabilities was $344 Mil.
Long-Term Debt was $989 Mil.
Net Income was 50.576 + -33.992 + -39.563 + -34.074 = $-57 Mil.
Non Operating Income was -1.346 + 0 + -4.862 + 0 = $-6 Mil.
Cash Flow from Operations was 158.561 + -151.703 + 28.794 + -17.83 = $18 Mil.
Accounts Receivable was $60 Mil.
Revenue was 963.469 + 658.757 + 578.137 + 622.533 = $2,823 Mil.
Gross Profit was 350.362 + 249.273 + 220.885 + 229.423 = $1,050 Mil.
Total Current Assets was $837 Mil.
Total Assets was $1,609 Mil.
Property, Plant and Equipment(Net PPE) was $642 Mil.
Depreciation, Depletion and Amortization(DDA) was $90 Mil.
Selling, General & Admin. Expense(SGA) was $907 Mil.
Total Current Liabilities was $431 Mil.
Long-Term Debt was $896 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)
=(60.514 / 2789.497) / (59.734 / 2822.896)
=0.02169352 / 0.02116054
=1.0252

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)
=(225.872 / 2822.896) / (344.962 / 2789.497)
=0.37193825 / 0.36342825
=1.0234

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 - (815.832 + 635.334) / 1557.206) / (1 - (837.103 + 641.996) / 1608.514)
=0.06809632 / 0.08045625
=0.8464

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
=2789.497 / 2822.896
=0.9882

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))
=(90.118 / (90.118 + 641.996)) / (91.783 / (91.783 + 635.334))
=0.12309285 / 0.12622865
=0.9752

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)
=(905.652 / 2789.497) / (907.036 / 2822.896)
=0.32466498 / 0.321314
=1.0104

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)
=((989.249 + 344.13) / 1557.206) / ((895.979 + 430.979) / 1608.514)
=0.85626372 / 0.82495894
=1.0379

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
=(-57.053 - -6.208 - 17.822) / 1557.206
=-0.0441

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.

Bon-Ton Stores Inc has a M-score of -2.74 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.

Bon-Ton Stores Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 10.069882.54650.75020.87610.84740.86881.15441.51561.0252
GMI 0.95951.01831.02940.95520.99231.03971.00970.98671.01071.0234
AQI 1.32810.99450.69271.11390.91640.92180.90391.03390.88030.8464
SGI 2.64291.00340.93010.94091.00380.96951.00860.95140.99610.9882
DEPI 1.31690.86810.98550.99561.01351.03081.03321.00690.96110.9752
SGAI 0.98181.00531.04260.99090.97451.02430.99161.00981.01251.0104
LVGI 1.95190.96611.08610.98360.97720.99891.00120.99881.02721.0379
TATA -0.0332-0.06-0.145-0.115-0.0722-0.1296-0.0528-0.0756-0.0332-0.0441
M-score -1.33-3.6171.66-3.27-2.95-3.26-2.87-2.73-2.22-2.74

Bon-Ton Stores Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 1.15440.89081.13050.81441.51561.08581.18121.05661.02520
GMI 0.98670.9870.99490.99711.01071.02271.0191.03441.02341.0137
AQI 1.03391.02720.94170.92550.88030.87410.88320.89030.84640.8009
SGI 0.95140.93580.94970.95240.99611.01181.00661.00310.98820.9799
DEPI 1.00690.99270.97860.95730.96110.9750.97960.97810.97520.9523
SGAI 1.00981.02691.02591.04031.01250.99590.99520.99171.01041.0203
LVGI 0.99881.00941.01971.02761.02721.031.02571.03361.03791.032
TATA -0.0533-0.0405-0.029-0.0123-0.014-0.0146-0.0445-0.0237-0.0441-0.0597
M-score -2.62-2.83-2.58-2.80-2.13-2.51-2.56-2.57-2.74-3.79
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