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Cabela's Inc (NYSE:CAB)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

CAB' s 10-Year Beneish M-Score Range
Min: -3.71   Max: 0.84
Current: -2.71

-3.71
0.84

During the past 13 years, the highest Beneish M-Score of Cabela's Inc was 0.84. The lowest was -3.71. And the median was -2.62.


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 * 0.8273+0.528 * 0.9795+0.404 * 0.8913+0.892 * 1.0089+0.115 * 1.0448
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0273+4.679 * -0.0018-0.327 * 1.0631
=-2.71

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $25 Mil.
Revenue was 886.002 + 761.201 + 725.823 + 1189.447 = $3,562 Mil.
Gross Profit was 393.502 + 353.683 + 317.858 + 500.71 = $1,566 Mil.
Total Current Assets was $5,565 Mil.
Total Assets was $7,215 Mil.
Property, Plant and Equipment(Net PPE) was $1,523 Mil.
Depreciation, Depletion and Amortization(DDA) was $108 Mil.
Selling, General & Admin. Expense(SGA) was $1,215 Mil.
Total Current Liabilities was $1,545 Mil.
Long-Term Debt was $3,237 Mil.
Net Income was 53.839 + 43.517 + 25.749 + 80.112 = $203 Mil.
Non Operating Income was 0.916 + 1.039 + 2.102 + 0.346 = $4 Mil.
Cash Flow from Operations was -85.955 + 102.972 + -56.058 + 250.811 = $212 Mil.
Accounts Receivable was $29 Mil.
Revenue was 850.828 + 756.805 + 802.497 + 1120.746 = $3,531 Mil.
Gross Profit was 380.896 + 343.34 + 343.802 + 452.013 = $1,520 Mil.
Total Current Assets was $5,132 Mil.
Total Assets was $6,462 Mil.
Property, Plant and Equipment(Net PPE) was $1,202 Mil.
Depreciation, Depletion and Amortization(DDA) was $89 Mil.
Selling, General & Admin. Expense(SGA) was $1,172 Mil.
Total Current Liabilities was $1,053 Mil.
Long-Term Debt was $2,976 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)
=(24.512 / 3562.473) / (29.367 / 3530.876)
=0.00688061 / 0.0083172
=0.8273

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)
=(353.683 / 3530.876) / (393.502 / 3562.473)
=0.43050252 / 0.43951295
=0.9795

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 - (5564.97 + 1522.91) / 7215.464) / (1 - (5132.201 + 1201.662) / 6462.065)
=0.01768202 / 0.01983917
=0.8913

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
=3562.473 / 3530.876
=1.0089

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))
=(89.223 / (89.223 + 1201.662)) / (107.888 / (107.888 + 1522.91))
=0.0691177 / 0.06615657
=1.0448

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)
=(1214.714 / 3562.473) / (1171.955 / 3530.876)
=0.34097494 / 0.33191622
=1.0273

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)
=((3237.398 + 1545.195) / 7215.464) / ((2976.399 + 1052.66) / 6462.065)
=0.66282543 / 0.62349404
=1.0631

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
=(203.217 - 4.403 - 211.77) / 7215.464
=-0.0018

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 -2.71 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 0.91390.91150.93311.08830.89940.67621.46180.94560.88310.8044
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 -2.24-2.46-2.51-2.23-2.57-3.07-2.61-2.73-2.66-2.68

Cabela's Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.90750.72640.88311.05620.8461.19140.80440.97381.00430.8273
GMI 0.95860.96350.98771.00151.00571.01430.98990.98090.97610.9795
AQI 0.81760.81820.78910.73140.72250.67730.80270.80570.87880.8913
SGI 1.06851.07741.10731.15581.17441.18661.15641.07021.0311.0089
DEPI 1.05751.06141.05611.05811.04951.05521.06451.05481.06751.0448
SGAI 1.00081.00640.99090.97240.98320.97770.99251.04491.0451.0273
LVGI 0.98791.01551.09141.14221.03181.03870.97450.99531.0541.0631
TATA -0.0488-0.0369-0.0117-0.0304-0.0245-0.01-0.01950.0044-0.0022-0.0018
M-score -2.82-2.93-2.66-2.57-2.69-2.31-2.68-2.51-2.54-2.71
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