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Cabela's Inc (NYSE:CAB)
Beneish M-Score
-2.45 (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.

Cabela's Inc has a M-score of -2.45 suggests that the company is not a manipulator.

CAB' s 10-Year Beneish M-Score Range
Min: -3.26   Max: 10.98
Current: -2.45

-3.26
10.98

During the past 13 years, the highest Beneish M-Score of Cabela's Inc was 10.98. The lowest was -3.26. And the median was -2.45.


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 Cabela's 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 * 1.0972+0.528 * 0.9761+0.404 * 0.8788+0.892 * 1.031+0.115 * 1.0675
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.045+4.679 * -0.0022-0.327 * 1.054
=-2.45

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $3,967 Mil.
Revenue was 761.201 + 725.823 + 1189.447 + 850.828 = $3,527 Mil.
Gross Profit was 353.683 + 317.858 + 500.71 + 380.896 = $1,553 Mil.
Total Current Assets was $5,020 Mil.
Total Assets was $6,598 Mil.
Property, Plant and Equipment(Net PPE) was $1,454 Mil.
Depreciation, Depletion and Amortization(DDA) was $103 Mil.
Selling, General & Admin. Expense(SGA) was $1,219 Mil.
Total Current Liabilities was $1,180 Mil.
Long-Term Debt was $3,000 Mil.
Net Income was 43.517 + 25.749 + 80.112 + 49.886 = $199 Mil.
Non Operating Income was 1.039 + 2.102 + 0.346 + 1.028 = $5 Mil.
Cash Flow from Operations was 102.972 + -56.058 + 250.811 + -88.519 = $209 Mil.
Accounts Receivable was $3,507 Mil.
Revenue was 756.805 + 802.497 + 1120.746 + 741.178 = $3,421 Mil.
Gross Profit was 343.34 + 343.802 + 452.013 + 331.249 = $1,470 Mil.
Total Current Assets was $4,789 Mil.
Total Assets was $6,043 Mil.
Property, Plant and Equipment(Net PPE) was $1,126 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General & Admin. Expense(SGA) was $1,132 Mil.
Total Current Liabilities was $1,103 Mil.
Long-Term Debt was $2,530 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)
=(3967.285 / 3527.299) / (3507.018 / 3421.226)
=1.12473737 / 1.02507639
=1.0972

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)
=(317.858 / 3421.226) / (353.683 / 3527.299)
=0.42978862 / 0.4403219
=0.9761

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 - (5020.233 + 1454.13) / 6598.185) / (1 - (4788.582 + 1125.591) / 6043.22)
=0.01876607 / 0.02135401
=0.8788

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
=3527.299 / 3421.226
=1.031

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))
=(85.316 / (85.316 + 1125.591)) / (102.756 / (102.756 + 1454.13))
=0.07045628 / 0.06600098
=1.0675

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)
=(1219.42 / 3527.299) / (1131.798 / 3421.226)
=0.34570928 / 0.3308165
=1.045

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)
=((2999.924 + 1180.341) / 6598.185) / ((2529.604 + 1102.805) / 6043.22)
=0.63354771 / 0.60107178
=1.054

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
=(199.264 - 4.515 - 209.206) / 6598.185
=-0.0022

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.

Cabela's Inc has a M-score of -2.45 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.

Cabela's Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.56972.79021.39951.04530.82120.764216.23041.07961.03440.9684
GMI 1.00150.99140.98141.00721.04211.0140.95770.95850.98770.9899
AQI 1.37940.92970.72260.86151.03721.35390.27120.82150.78910.8027
SGI 1.11751.15661.14661.13861.08641.03121.01181.05551.10731.1564
DEPI 0.99421.30481.00041.13630.90820.8551.01621.0351.05611.0645
SGAI 0.99391.00621.00571.00680.97160.97481.0171.00950.99090.9925
LVGI 0.91331.00191.10261.0580.8260.94981.56510.85281.09140.9745
TATA 0.0064-0.00780.01210.0222-0.0356-0.1009-0.0138-0.045-0.0117-0.0195
M-score -2.56-0.73-2.08-2.27-2.65-2.9910.98-2.61-2.52-2.53

Cabela's Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.09611.06391.081.03440.99150.97910.9540.96841.03751.0972
GMI 0.95310.95860.96350.98771.00151.00571.01430.98990.98090.9761
AQI 0.87280.81760.81820.78910.73140.72250.67730.80270.80570.8788
SGI 1.05861.06851.07741.10731.15581.17441.18661.15641.07021.031
DEPI 1.02051.05751.06141.05611.05811.04951.05521.06451.05481.0675
SGAI 1.01841.00081.00640.99090.97240.98320.97770.99251.04491.045
LVGI 0.9130.98791.01551.09141.14221.03181.03870.97450.99531.054
TATA -0.0421-0.0488-0.0369-0.0117-0.0304-0.0245-0.01-0.01950.0044-0.0022
M-score -2.58-2.67-2.60-2.52-2.63-2.57-2.53-2.53-2.45-2.45
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