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Bon-Ton Stores Inc (NAS:BONT)
Beneish M-Score
-2.57 (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 -2.57 suggests that the company is not a manipulator.

BONT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.32   Max: 71.6
Current: -2.57

-4.32
71.6

During the past 13 years, the highest Beneish M-Score of Bon-Ton Stores Inc was 71.60. The lowest was -4.32. And the median was -2.72.


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 * 1.0566+0.528 * 1.0344+0.404 * 0.8903+0.892 * 1.0031+0.115 * 0.9781
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9917+4.679 * -0.0237-0.327 * 1.0336
=-2.57

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $37 Mil.
Revenue was 640.897 + 570.999 + 627.242 + 963.469 = $2,803 Mil.
Gross Profit was 225.872 + 220.171 + 222.777 + 350.362 = $1,019 Mil.
Total Current Assets was $1,099 Mil.
Total Assets was $1,865 Mil.
Property, Plant and Equipment(Net PPE) was $644 Mil.
Depreciation, Depletion and Amortization(DDA) was $91 Mil.
Selling, General & Admin. Expense(SGA) was $902 Mil.
Total Current Liabilities was $671 Mil.
Long-Term Debt was $1,031 Mil.
Net Income was -33.992 + -39.563 + -34.074 + 71.738 = $-36 Mil.
Non Operating Income was 0 + -4.862 + 0 + 0 = $-5 Mil.
Cash Flow from Operations was -151.703 + 28.794 + -17.83 + 153.825 = $13 Mil.
Accounts Receivable was $35 Mil.
Revenue was 658.757 + 578.137 + 622.533 + 934.619 = $2,794 Mil.
Gross Profit was 249.273 + 220.885 + 229.423 + 351.475 = $1,051 Mil.
Total Current Assets was $1,057 Mil.
Total Assets was $1,830 Mil.
Property, Plant and Equipment(Net PPE) was $637 Mil.
Depreciation, Depletion and Amortization(DDA) was $88 Mil.
Selling, General & Admin. Expense(SGA) was $907 Mil.
Total Current Liabilities was $598 Mil.
Long-Term Debt was $1,018 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)
=(37.375 / 2802.607) / (35.264 / 2794.046)
=0.0133358 / 0.01262112
=1.0566

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)
=(220.171 / 2794.046) / (225.872 / 2802.607)
=0.37617706 / 0.36365498
=1.0344

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 - (1098.796 + 643.511) / 1865.301) / (1 - (1057.224 + 637.217) / 1829.98)
=0.06593788 / 0.07406584
=0.8903

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
=2802.607 / 2794.046
=1.0031

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))
=(88.302 / (88.302 + 637.217)) / (91.452 / (91.452 + 643.511))
=0.12170874 / 0.12443075
=0.9781

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)
=(902.064 / 2802.607) / (906.837 / 2794.046)
=0.32186603 / 0.32456051
=0.9917

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)
=((1030.736 + 671.074) / 1865.301) / ((1017.642 + 597.738) / 1829.98)
=0.91235141 / 0.88273096
=1.0336

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
=(-35.891 - -4.862 - 13.086) / 1865.301
=-0.0237

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 -2.57 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 010.069882.54650.75020.87610.84740.86881.15441.5156
GMI 0.99860.95951.01831.02940.95520.99231.03971.00970.98671.0107
AQI 1.56361.32810.99450.69271.11390.91640.92180.90391.03390.8803
SGI 0.99092.64291.00340.93010.94091.00380.96951.00860.95140.9961
DEPI 1.08591.31690.86811.02120.96091.01351.03081.03321.00690.9611
SGAI 0.98790.98181.00531.04260.99090.97451.02430.99161.00981.0125
LVGI 0.7371.95190.96611.08610.98360.97720.99891.00120.99881.0272
TATA -0.2641-0.077-0.1092-0.145-0.115-0.0722-0.0638-0.0528-0.0756-0.0332
M-score -4.32-1.54-3.8471.66-3.28-2.95-2.96-2.87-2.73-2.22

Bon-Ton Stores Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 1.00961.63721.15440.89081.13050.81441.51561.08581.18121.0566
GMI 0.98450.97860.98670.9870.99490.99711.01071.02271.0191.0344
AQI 0.96150.99631.03391.02720.94170.92550.88030.87410.88320.8903
SGI 1.0030.99310.95140.93580.94970.95240.99611.01181.00661.0031
DEPI 1.0041.00241.00690.99270.97970.96440.96110.9750.97960.9781
SGAI 0.9790.98891.00981.02691.02591.04031.01250.99590.99520.9917
LVGI 1.0030.99260.99881.00941.01971.02761.02721.031.02571.0336
TATA -0.0546-0.0636-0.0805-0.0679-0.0486-0.0292-0.0332-0.0339-0.0445-0.0237
M-score -2.74-2.21-2.75-2.96-2.67-2.88-2.22-2.60-2.56-2.57
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