Switch to:
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: -3.71   Max: 0.84
Current: -2.45

-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 -2.57.


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 * 1.0829+0.528 * 1.0145+0.404 * 0.8769+0.892 * 1.0841+0.115 * 1.013
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0055+4.679 * -0.013-0.327 * 1.057
=-2.45

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $29 Mil.
Revenue was 836.276 + 827.076 + 1274.624 + 886.002 = $3,824 Mil.
Gross Profit was 383.282 + 360.637 + 522.318 + 393.502 = $1,660 Mil.
Total Current Assets was $5,752 Mil.
Total Assets was $7,642 Mil.
Property, Plant and Equipment(Net PPE) was $1,763 Mil.
Depreciation, Depletion and Amortization(DDA) was $123 Mil.
Selling, General & Admin. Expense(SGA) was $1,329 Mil.
Total Current Liabilities was $1,874 Mil.
Long-Term Debt was $3,243 Mil.
Net Income was 40.057 + 26.774 + 78.61 + 53.839 = $199 Mil.
Non Operating Income was 2.025 + 1.74 + 0.867 + 0.916 = $6 Mil.
Cash Flow from Operations was 81.362 + 0.515 + 297.02 + -85.955 = $293 Mil.
Accounts Receivable was $25 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.



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)
=(29.469 / 3823.978) / (25.102 / 3527.299)
=0.00770637 / 0.00711649
=1.0829

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)
=(360.637 / 3527.299) / (383.282 / 3823.978)
=0.4403219 / 0.43403466
=1.0145

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 - (5752.427 + 1763.483) / 7641.655) / (1 - (5020.233 + 1454.13) / 6598.185)
=0.01645521 / 0.01876607
=0.8769

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
=3823.978 / 3527.299
=1.0841

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))
=(102.756 / (102.756 + 1454.13)) / (122.901 / (122.901 + 1763.483))
=0.06600098 / 0.06515163
=1.013

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)
=(1329.265 / 3823.978) / (1219.42 / 3527.299)
=0.34761314 / 0.34570928
=1.0055

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)
=((3243.117 + 1874.298) / 7641.655) / ((2999.924 + 1180.341) / 6598.185)
=0.66967365 / 0.63354771
=1.057

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
=(199.28 - 5.548 - 292.942) / 7641.655
=-0.013

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

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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.05620.8461.19140.80440.97381.00430.82731.43551.03181.0829
GMI 1.00151.00571.01430.98990.98090.97610.97951.00151.00711.0145
AQI 0.73140.72250.67730.70390.80570.87880.89130.86360.95380.8769
SGI 1.15581.17441.18661.15641.07021.0311.00891.01341.06421.0841
DEPI 1.05811.04951.05521.07611.05481.06751.04481.02891.01311.013
SGAI 0.97240.98320.97770.99251.04491.0451.02731.02770.9991.0055
LVGI 1.14221.03181.03870.97450.99531.0541.06311.11311.06031.057
TATA -0.0304-0.0245-0.01-0.01950.0044-0.0022-0.0018-0.008-0.0159-0.013
M-score -2.57-2.69-2.31-2.72-2.51-2.54-2.71-2.20-2.50-2.45
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK