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Bon-Ton Stores Inc (NAS:BONT)
Beneish M-Score
-2.80 (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 -2.80 suggests that the company is not a manipulator.

BONT' s 10-Year Beneish M-Score Range
Min: -4.32   Max: 71.6
Current: -2.8

-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 * 0.8144+0.528 * 0.9971+0.404 * 0.9255+0.892 * 0.9524+0.115 * 0.9644
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0403+4.679 * -0.0123-0.327 * 1.0276
=-2.80

* 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 $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.
Net Income was -11.008 + -36.192 + -31.512 + 61.339 = $-17 Mil.
Non Operating Income was 0 + -30.894 + -0.153 + -0.136 = $-31 Mil.
Cash Flow from Operations was -101.541 + 10.148 + -15.803 + 143.458 = $36 Mil.
Accounts Receivable was $45 Mil.
Revenue was 666.573 + 570.985 + 661.883 + 1034.159 = $2,934 Mil.
Gross Profit was 253.641 + 219.977 + 240.295 + 386.42 = $1,100 Mil.
Total Current Assets was $1,014 Mil.
Total Assets was $1,809 Mil.
Property, Plant and Equipment(Net PPE) was $650 Mil.
Depreciation, Depletion and Amortization(DDA) was $86 Mil.
Selling, General & Admin. Expense(SGA) was $915 Mil.
Total Current Liabilities was $572 Mil.
Long-Term Debt was $981 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)
=(35.264 / 2794.046) / (45.461 / 2933.6)
=0.01262112 / 0.01549666
=0.8144

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)
=(220.885 / 2933.6) / (249.273 / 2794.046)
=0.37507942 / 0.37617706
=0.9971

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 - (1057.224 + 637.217) / 1829.98) / (1 - (1013.805 + 649.966) / 1808.501)
=0.07406584 / 0.0800276
=0.9255

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
=2794.046 / 2933.6
=0.9524

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))
=(86.431 / (86.431 + 649.966)) / (88.302 / (88.302 + 637.217))
=0.11737011 / 0.12170874
=0.9644

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)
=(906.837 / 2794.046) / (915.207 / 2933.6)
=0.32456051 / 0.31197403
=1.0403

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)
=((1017.642 + 597.738) / 1829.98) / ((981.385 + 572.225) / 1808.501)
=0.88273096 / 0.85905952
=1.0276

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
=(-17.373 - -31.183 - 36.262) / 1829.98
=-0.0123

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 -2.80 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

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 0.858710.868811.00961.63721.15440.89081.13050.8144
GMI 1.04071.04021.00970.99810.98450.97860.98670.9870.99490.9971
AQI 0.92590.9210.90390.93760.96150.99631.03391.02720.94170.9255
SGI 0.97320.99261.00861.01461.0030.99310.95140.93580.94970.9524
DEPI 1.07421.07841.03321.02711.0041.00241.00690.99270.97970.9644
SGAI 1.0381.00760.99160.97590.9790.98891.00981.02691.02591.0403
LVGI 0.99040.98951.00120.98151.0030.99260.99881.00941.01971.0276
TATA -0.0828-0.0677-0.0605-0.0808-0.0546-0.0636-0.0805-0.0679-0.029-0.0123
M-score -3.02-2.80-2.90-2.86-2.74-2.21-2.75-2.96-2.58-2.80
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