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Cabela's Inc (NYSE:CAB)
Beneish M-Score
-2.47 (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 -2.47 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: -2.47

-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 -2.57.


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 * 1.0489+0.528 * 1.0121+0.404 * 0.9232+0.892 * 1.0848+0.115 * 1.0081
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0345+4.679 * -0.016-0.327 * 1.0115
=-2.47

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 43.708 + 40.057 + 26.774 + 78.61 = $189 Mil.
Non Operating Income was 1.42 + 2.025 + 1.74 + 0.867 = $6 Mil.
Cash Flow from Operations was -67.096 + 81.362 + 0.515 + 297.02 = $312 Mil.
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.



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)
=(27.89 / 3864.499) / (24.512 / 3562.473)
=0.00721698 / 0.00688061
=1.0489

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)
=(383.282 / 3562.473) / (412.029 / 3864.499)
=0.43951295 / 0.43427777
=1.0121

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 - (6080.384 + 1822.672) / 8034.207) / (1 - (5564.97 + 1522.91) / 7215.464)
=0.01632408 / 0.01768202
=0.9232

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
=3864.499 / 3562.473
=1.0848

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))
=(107.888 / (107.888 + 1522.91)) / (128.007 / (128.007 + 1822.672))
=0.06615657 / 0.06562177
=1.0081

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)
=(1363.175 / 3864.499) / (1214.714 / 3562.473)
=0.35274301 / 0.34097494
=1.0345

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)
=((3771.408 + 1614.984) / 8034.207) / ((3237.398 + 1545.195) / 7215.464)
=0.67043232 / 0.66282543
=1.0115

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
=(189.149 - 6.052 - 311.801) / 8034.207
=-0.016

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 -2.47 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.8461.19140.80440.97381.00430.82731.43551.03181.08291.0489
GMI 1.00571.01430.98990.98090.97610.97951.00151.00711.01451.0121
AQI 0.72250.67730.70390.80570.87880.89130.86360.95380.87690.9232
SGI 1.17441.18661.15641.07021.0311.00891.01341.06421.08411.0848
DEPI 1.04951.05521.07611.05481.06751.04481.02891.01311.0131.0081
SGAI 0.98320.97770.99251.04491.0451.02731.02770.9991.00551.0345
LVGI 1.03181.03870.97450.99531.0541.06311.11311.06031.0571.0115
TATA -0.0245-0.01-0.01950.0044-0.0022-0.0018-0.008-0.0159-0.013-0.016
M-score -2.69-2.31-2.72-2.51-2.54-2.71-2.20-2.50-2.45-2.47
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