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Bon-Ton Stores Inc (NAS:BONT)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

BONT' s 10-Year Beneish M-Score Range
Min: -4.32   Max: 71.6
Current: -2.51

-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 -2.73.


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 * 1.0858+0.528 * 1.0227+0.404 * 0.8741+0.892 * 1.0118+0.115 * 0.975
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9959+4.679 * -0.0146-0.327 * 1.03
=-2.51

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $35 Mil.
Revenue was 627.242 + 963.469 + 658.757 + 578.137 = $2,828 Mil.
Gross Profit was 222.777 + 350.362 + 249.273 + 220.885 = $1,043 Mil.
Total Current Assets was $825 Mil.
Total Assets was $1,595 Mil.
Property, Plant and Equipment(Net PPE) was $642 Mil.
Depreciation, Depletion and Amortization(DDA) was $91 Mil.
Selling, General & Admin. Expense(SGA) was $903 Mil.
Total Current Liabilities was $612 Mil.
Long-Term Debt was $742 Mil.
Net Income was -34.074 + 71.738 + -11.008 + -36.192 = $-10 Mil.
Non Operating Income was 0 + 0 + 0 + -30.894 = $-31 Mil.
Cash Flow from Operations was -17.83 + 153.825 + -101.541 + 10.148 = $45 Mil.
Accounts Receivable was $32 Mil.
Revenue was 622.533 + 934.619 + 666.573 + 570.985 = $2,795 Mil.
Gross Profit was 229.423 + 351.475 + 253.641 + 219.977 = $1,055 Mil.
Total Current Assets was $793 Mil.
Total Assets was $1,567 Mil.
Property, Plant and Equipment(Net PPE) was $629 Mil.
Depreciation, Depletion and Amortization(DDA) was $86 Mil.
Selling, General & Admin. Expense(SGA) was $897 Mil.
Total Current Liabilities was $399 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)
=(35.198 / 2827.605) / (32.04 / 2794.71)
=0.01244799 / 0.01146452
=1.0858

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)
=(350.362 / 2794.71) / (222.777 / 2827.605)
=0.37732573 / 0.36896844
=1.0227

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 - (824.776 + 642.268) / 1595.207) / (1 - (793.139 + 629.453) / 1566.582)
=0.08034255 / 0.09191348
=0.8741

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
=2827.605 / 2794.71
=1.0118

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))
=(86.254 / (86.254 + 629.453)) / (90.589 / (90.589 + 642.268))
=0.1205158 / 0.12361075
=0.975

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)
=(903.403 / 2827.605) / (896.586 / 2794.71)
=0.31949406 / 0.3208154
=0.9959

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)
=((741.626 + 611.735) / 1595.207) / ((891.77 + 398.601) / 1566.582)
=0.84839209 / 0.82368558
=1.03

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
=(-9.536 - -30.894 - 44.602) / 1595.207
=-0.0146

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 -2.51 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 -0.2641-0.077-0.1092-0.145-0.115-0.0722-0.0638-0.0632-0.0756-0.0332
M-score -4.32-1.54-3.8471.66-3.28-2.95-2.96-2.92-2.73-2.22

Bon-Ton Stores Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 0.868811.00961.63721.15440.89081.13050.81441.51561.0858
GMI 1.00970.99810.98450.97860.98670.9870.99490.99711.01071.0227
AQI 0.90390.93760.96150.99631.03391.02720.94170.92550.88030.8741
SGI 1.00861.01461.0030.99310.95140.93580.94970.95240.99611.0118
DEPI 1.03321.02711.00631.01691.00690.99270.97860.95730.96110.975
SGAI 0.99160.97590.9790.98891.00981.02691.02591.04031.01250.9959
LVGI 1.00120.98151.0030.99260.99881.00941.01971.02761.02721.03
TATA -0.0632-0.0835-0.0653-0.073-0.0805-0.0679-0.029-0.0123-0.014-0.0146
M-score -2.92-2.87-2.79-2.25-2.75-2.96-2.58-2.80-2.13-2.51
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