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Bon-Ton Stores Inc (NAS:BONT)
Beneish M-Score
-2.58 (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 -2.58 suggests that the company is not a manipulator.

BONT' s 10-Year Beneish M-Score Range
Min: -4.32   Max: 71.6
Current: -2.58

-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 -2.74.


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 * 1.1305+0.528 * 0.9949+0.404 * 0.9417+0.892 * 0.9497+0.115 * 0.9797
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0259+4.679 * -0.029-0.327 * 1.0197
=-2.58

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $31 Mil.
Revenue was 578.137 + 622.533 + 934.619 + 666.573 = $2,802 Mil.
Gross Profit was 220.885 + 229.423 + 351.475 + 253.641 = $1,055 Mil.
Total Current Assets was $803 Mil.
Total Assets was $1,573 Mil.
Property, Plant and Equipment(Net PPE) was $633 Mil.
Depreciation, Depletion and Amortization(DDA) was $87 Mil.
Selling, General & Admin. Expense(SGA) was $901 Mil.
Total Current Liabilities was $444 Mil.
Long-Term Debt was $899 Mil.
Net Income was -36.192 + -31.512 + 61.339 + -0.931 = $-7 Mil.
Non Operating Income was -30.894 + -0.153 + -0.136 + -0.02 = $-31 Mil.
Cash Flow from Operations was 10.148 + -15.803 + 143.458 + -68.339 = $69 Mil.
Accounts Receivable was $29 Mil.
Revenue was 570.985 + 661.883 + 1034.159 + 683.12 = $2,950 Mil.
Gross Profit was 219.977 + 240.295 + 386.42 + 258.901 = $1,106 Mil.
Total Current Assets was $799 Mil.
Total Assets was $1,589 Mil.
Property, Plant and Equipment(Net PPE) was $643 Mil.
Depreciation, Depletion and Amortization(DDA) was $87 Mil.
Selling, General & Admin. Expense(SGA) was $925 Mil.
Total Current Liabilities was $438 Mil.
Long-Term Debt was $892 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)
=(30.869 / 2801.862) / (28.751 / 2950.147)
=0.01101732 / 0.00974562
=1.1305

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)
=(229.423 / 2950.147) / (220.885 / 2801.862)
=0.37475861 / 0.37668665
=0.9949

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 - (803.26 + 632.701) / 1572.579) / (1 - (799.2 + 643.033) / 1588.8)
=0.08687513 / 0.09225013
=0.9417

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
=2801.862 / 2950.147
=0.9497

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))
=(86.763 / (86.763 + 643.033)) / (87.378 / (87.378 + 632.701))
=0.11888665 / 0.12134502
=0.9797

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)
=(901.14 / 2801.862) / (924.849 / 2950.147)
=0.32162184 / 0.31349251
=1.0259

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)
=((899.081 + 444.066) / 1572.579) / ((892.49 + 438.351) / 1588.8)
=0.85410463 / 0.8376391
=1.0197

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
=(-7.296 - -31.203 - 69.464) / 1572.579
=-0.029

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 -2.58 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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.5573010.069882.54650.75020.87610.84740.86881.1544
GMI 0.98680.99860.95951.01831.02940.95520.99231.03971.00970.9867
AQI 0.9771.56361.32810.99450.69271.11390.91640.92180.90391.0339
SGI 1.41540.99092.64291.00340.93010.94091.00380.96951.00860.9514
DEPI 0.84981.08591.31690.86811.02120.96091.01351.03081.03321.0069
SGAI 1.07470.98790.98181.00531.04260.99090.97451.02430.99161.0098
LVGI 0.98160.7371.95190.96611.08610.98360.97720.99891.00120.9988
TATA -0.0275-0.2641-0.077-0.1092-0.145-0.115-0.0722-0.0638-0.0528-0.0756
M-score -2.69-4.32-1.54-3.8471.66-3.28-2.95-2.96-2.87-2.73

Bon-Ton Stores Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 10.858710.868811.00961.63721.15440.89081.1305
GMI 1.03751.04071.04021.00970.99810.98450.97860.98670.9870.9949
AQI 0.91560.92590.9210.90390.93760.96150.99631.03391.02720.9417
SGI 0.96960.97320.99261.00861.01461.0030.99310.95140.93580.9497
DEPI 1.04031.07421.07841.03321.02711.0041.00241.00690.99270.9797
SGAI 1.03741.0381.00760.99160.97590.9790.98891.00981.02691.0259
LVGI 1.00570.99040.98951.00120.98151.0030.99260.99881.00941.0197
TATA -0.0589-0.0828-0.0677-0.0605-0.0808-0.0546-0.0636-0.0805-0.0679-0.029
M-score -2.80-3.02-2.80-2.90-2.86-2.74-2.21-2.75-2.96-2.58
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