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Cabela's Inc (NYSE:CAB)
Beneish M-Score
-2.21 (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 -2.21 signals that the company is a manipulator.

CAB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.71   Max: -1.76
Current: -2.21

-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 -2.54.


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 * 1.2344+0.528 * 1.0289+0.404 * 1.2597+0.892 * 1.0797+0.115 * 0.8954
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9828+4.679 * -0.0284-0.327 * 0.9709
=-2.21

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $39 Mil.
Revenue was 929.897 + 864.662 + 1407.827 + 926.523 = $4,129 Mil.
Gross Profit was 398.35 + 376.517 + 554.822 + 412.029 = $1,742 Mil.
Total Current Assets was $6,755 Mil.
Total Assets was $8,765 Mil.
Property, Plant and Equipment(Net PPE) was $1,839 Mil.
Depreciation, Depletion and Amortization(DDA) was $144 Mil.
Selling, General & Admin. Expense(SGA) was $1,411 Mil.
Total Current Liabilities was $2,387 Mil.
Long-Term Debt was $3,309 Mil.
Net Income was 37.759 + 22.889 + 78.791 + 43.708 = $183 Mil.
Non Operating Income was 2.78 + 0.901 + 4.532 + 1.42 = $10 Mil.
Cash Flow from Operations was 151.833 + 25.39 + 312.21 + -67.096 = $422 Mil.
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 $7,634 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 $3,236 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)
=(39.278 / 4128.909) / (29.469 / 3823.978)
=0.00951292 / 0.00770637
=1.2344

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)
=(1659.739 / 3823.978) / (1741.718 / 4128.909)
=0.43403466 / 0.42183492
=1.0289

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 - (6755.077 + 1839.451) / 8765.259) / (1 - (5752.427 + 1763.483) / 7633.954)
=0.01947815 / 0.01546302
=1.2597

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
=4128.909 / 3823.978
=1.0797

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))
=(122.901 / (122.901 + 1763.483)) / (144.343 / (144.343 + 1839.451))
=0.06515163 / 0.07276108
=0.8954

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)
=(1410.522 / 4128.909) / (1329.265 / 3823.978)
=0.34162099 / 0.34761314
=0.9828

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)
=((3308.782 + 2387.485) / 8765.259) / ((3235.711 + 1874.003) / 7633.954)
=0.64986865 / 0.66934042
=0.9709

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
=(183.147 - 9.633 - 422.337) / 8765.259
=-0.0284

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 -2.21 signals that the company is likely to 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

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 0.72260.86151.03721.35390.27120.82150.78910.70391.00211.2331
SGI 1.14661.13861.08641.03121.01181.05551.10731.15641.01341.096
DEPI 1.00041.13630.90820.8551.01621.0351.05611.07611.01830.9626
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 -2.51-2.23-2.57-3.07-2.61-2.73-2.66-2.72-2.14-2.24

Cabela's Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.97381.00430.82731.43551.03181.08291.04891.16081.07281.2344
GMI 0.98090.97610.97951.00151.00711.01451.01211.01691.01621.0289
AQI 0.80570.87880.89131.00210.89590.8240.92321.23311.21571.2597
SGI 1.07021.0311.00891.01341.06421.08411.08481.0961.07641.0797
DEPI 1.05481.06751.04481.01831.01311.0131.00810.96260.95580.8954
SGAI 1.04491.0451.02731.02770.9991.00551.03451.01181.00840.9828
LVGI 0.99531.0541.06311.11311.05971.05651.01151.01931.01170.9709
TATA 0.0044-0.0022-0.0018-0.008-0.0159-0.013-0.016-0.0174-0.0216-0.0284
M-score -2.51-2.54-2.71-2.14-2.52-2.47-2.47-2.24-2.36-2.21
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