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Cabela's Inc (NYSE:CAB)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

CAB' s 10-Year Beneish M-Score Range
Min: -3.71   Max: 0.84
Current: -2.5

-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 -2.59.


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 * 1.0318+0.528 * 1.0071+0.404 * 0.9538+0.892 * 1.0642+0.115 * 1.0131
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.999+4.679 * -0.0159-0.327 * 1.0603
=-2.50

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $31 Mil.
Revenue was 827.076 + 1274.624 + 886.002 + 761.201 = $3,749 Mil.
Gross Profit was 360.637 + 522.318 + 393.502 + 353.683 = $1,630 Mil.
Total Current Assets was $5,539 Mil.
Total Assets was $7,335 Mil.
Property, Plant and Equipment(Net PPE) was $1,665 Mil.
Depreciation, Depletion and Amortization(DDA) was $118 Mil.
Selling, General & Admin. Expense(SGA) was $1,290 Mil.
Total Current Liabilities was $1,280 Mil.
Long-Term Debt was $3,562 Mil.
Net Income was 26.774 + 78.61 + 53.839 + 43.517 = $203 Mil.
Non Operating Income was 1.74 + 0.867 + 0.916 + 1.039 = $5 Mil.
Cash Flow from Operations was 0.515 + 297.02 + -85.955 + 102.972 = $315 Mil.
Accounts Receivable was $28 Mil.
Revenue was 725.823 + 1189.447 + 850.828 + 756.805 = $3,523 Mil.
Gross Profit was 317.858 + 500.71 + 380.896 + 343.34 = $1,543 Mil.
Total Current Assets was $5,129 Mil.
Total Assets was $6,619 Mil.
Property, Plant and Equipment(Net PPE) was $1,366 Mil.
Depreciation, Depletion and Amortization(DDA) was $98 Mil.
Selling, General & Admin. Expense(SGA) was $1,214 Mil.
Total Current Liabilities was $1,127 Mil.
Long-Term Debt was $2,993 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)
=(30.699 / 3748.903) / (27.959 / 3522.903)
=0.0081888 / 0.00793635
=1.0318

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)
=(522.318 / 3522.903) / (360.637 / 3748.903)
=0.43793542 / 0.4348312
=1.0071

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 - (5539.081 + 1665.178) / 7335.065) / (1 - (5128.583 + 1366.298) / 6618.626)
=0.01783297 / 0.01869648
=0.9538

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
=3748.903 / 3522.903
=1.0642

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))
=(98.388 / (98.388 + 1366.298)) / (118.245 / (118.245 + 1665.178))
=0.06717344 / 0.06630227
=1.0131

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)
=(1290.424 / 3748.903) / (1213.837 / 3522.903)
=0.34421376 / 0.3445559
=0.999

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)
=((3561.563 + 1279.901) / 7335.065) / ((2992.837 + 1127.409) / 6618.626)
=0.66004378 / 0.62252286
=1.0603

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
=(202.74 - 4.562 - 314.552) / 7335.065
=-0.0159

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 -2.50 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.91150.93311.08830.89940.67621.46180.94560.88310.80441.4355
GMI 0.99140.98141.00721.04211.0140.95770.95850.98770.98991.0015
AQI 0.92970.72260.86151.03721.35390.27120.82150.78910.70390.8636
SGI 1.15661.14661.13861.08641.03121.01181.05551.10731.15641.0134
DEPI 1.30481.00041.13630.90820.8551.01621.0351.05611.07611.0289
SGAI 1.00621.00571.00680.97160.97481.0171.00950.99090.99251.0277
LVGI 1.00191.10261.0580.8260.94981.56510.85281.09140.97451.1131
TATA -0.00780.01210.0222-0.0356-0.1009-0.0138-0.045-0.0117-0.0195-0.008
M-score -2.46-2.51-2.23-2.57-3.07-2.61-2.73-2.66-2.72-2.20

Cabela's Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.88311.05620.8461.19140.80440.97381.00430.82731.43551.0318
GMI 0.98771.00151.00571.01430.98990.98090.97610.97951.00151.0071
AQI 0.78910.73140.72250.67730.70390.80570.87880.89130.86360.9538
SGI 1.10731.15581.17441.18661.15641.07021.0311.00891.01341.0642
DEPI 1.05611.05811.04951.05521.07611.05481.06751.04481.02891.0131
SGAI 0.99090.97240.98320.97770.99251.04491.0451.02731.02770.999
LVGI 1.09141.14221.03181.03870.97450.99531.0541.06311.11311.0603
TATA -0.0117-0.0304-0.0245-0.01-0.01950.0044-0.0022-0.0018-0.008-0.0159
M-score -2.66-2.57-2.69-2.31-2.72-2.51-2.54-2.71-2.20-2.50
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