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Cabela's Inc (NYSE:CAB)
Beneish M-Score
-2.55 (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 -2.55 suggests that the company is not a manipulator.

CAB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.71   Max: -1.76
Current: -2.55

-3.71
-1.76

During the past 13 years, the highest Beneish M-Score of Cabela's Inc was -1.76. The lowest was -3.71. And the median was -2.55.


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 * 0.9244+0.528 * 1.05+0.404 * 1.2514+0.892 * 1.0865+0.115 * 0.8779
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9678+4.679 * -0.0446-0.327 * 0.9712
=-2.55

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $28 Mil.
Revenue was 996.495 + 929.897 + 864.662 + 1407.827 = $4,199 Mil.
Gross Profit was 407.025 + 398.35 + 376.517 + 554.822 = $1,737 Mil.
Total Current Assets was $6,875 Mil.
Total Assets was $8,883 Mil.
Property, Plant and Equipment(Net PPE) was $1,826 Mil.
Depreciation, Depletion and Amortization(DDA) was $148 Mil.
Selling, General & Admin. Expense(SGA) was $1,433 Mil.
Total Current Liabilities was $2,498 Mil.
Long-Term Debt was $3,287 Mil.
Net Income was 28.24 + 37.759 + 22.889 + 78.791 = $168 Mil.
Non Operating Income was 0.88 + 2.78 + 0.901 + 4.532 = $9 Mil.
Cash Flow from Operations was 65.369 + 151.833 + 25.39 + 312.21 = $555 Mil.
Accounts Receivable was $28 Mil.
Revenue was 926.523 + 836.276 + 827.076 + 1274.624 = $3,864 Mil.
Gross Profit was 412.029 + 383.282 + 360.637 + 522.318 = $1,678 Mil.
Total Current Assets was $6,080 Mil.
Total Assets was $8,034 Mil.
Property, Plant and Equipment(Net PPE) was $1,823 Mil.
Depreciation, Depletion and Amortization(DDA) was $128 Mil.
Selling, General & Admin. Expense(SGA) was $1,363 Mil.
Total Current Liabilities was $1,615 Mil.
Long-Term Debt was $3,771 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)
=(28.013 / 4198.881) / (27.89 / 3864.499)
=0.00667154 / 0.00721698
=0.9244

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)
=(1678.266 / 3864.499) / (1736.714 / 4198.881)
=0.43427777 / 0.41361353
=1.05

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 - (6875.265 + 1826.414) / 8883.145) / (1 - (6080.384 + 1822.672) / 8034.207)
=0.02042813 / 0.01632408
=1.2514

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
=4198.881 / 3864.499
=1.0865

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))
=(128.007 / (128.007 + 1822.672)) / (147.549 / (147.549 + 1826.414))
=0.06562177 / 0.0747476
=0.8779

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)
=(1433.365 / 4198.881) / (1363.175 / 3864.499)
=0.34136833 / 0.35274301
=0.9678

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)
=((3286.644 + 2497.509) / 8883.145) / ((3771.408 + 1614.984) / 8034.207)
=0.65113797 / 0.67043232
=0.9712

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
=(167.679 - 9.093 - 554.802) / 8883.145
=-0.0446

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 -2.55 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 local exchange's currency.

Cabela's Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.93311.08830.89940.67621.46180.94560.88310.80441.43551.1608
GMI 0.98141.00721.04211.0140.95770.95850.98770.98991.00151.0169
AQI 0.72260.86151.03721.35390.27120.82150.78910.80270.75731.4309
SGI 1.14661.13861.08641.03121.01181.05551.10731.15641.01341.096
DEPI 1.00041.13630.90820.8551.01621.0351.05611.06451.04010.9527
SGAI 1.00571.00680.97160.97481.0171.00950.99090.99251.02771.0118
LVGI 1.10261.0580.8260.94981.56510.85281.09140.97451.11311.0193
TATA 0.01210.0222-0.0356-0.1009-0.0138-0.045-0.0117-0.0195-0.008-0.0174
M-score -2.51-2.23-2.57-3.07-2.61-2.73-2.66-2.68-2.24-2.16

Cabela's Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.00430.82731.43551.03181.08291.04891.16081.07281.23440.9244
GMI 0.97610.97951.00151.00711.01451.01211.01691.01621.02891.05
AQI 0.87880.89130.75730.95380.87690.92321.43091.14181.18371.2514
SGI 1.0311.00891.01341.06421.08411.08481.0961.07641.07971.0865
DEPI 1.06751.04481.04011.01311.0131.00810.95270.95580.89540.8779
SGAI 1.0451.02731.02770.9991.00551.03451.01181.00840.98280.9678
LVGI 1.0541.06311.11311.06031.0571.01151.01931.01110.97040.9712
TATA -0.0022-0.0018-0.008-0.0159-0.013-0.016-0.0174-0.0216-0.0284-0.0446
M-score -2.54-2.71-2.24-2.50-2.45-2.47-2.16-2.39-2.24-2.55
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