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Cabela's Inc (NYSE:CAB)
Beneish M-Score
-2.36 (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 -2.36 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: -2.36

-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 -2.56.


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 * 1.0728+0.528 * 1.0162+0.404 * 1.2157+0.892 * 1.0764+0.115 * 0.9558
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0084+4.679 * -0.0216-0.327 * 1.0117
=-2.36

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $35 Mil.
Revenue was 864.662 + 1407.827 + 926.523 + 836.276 = $4,035 Mil.
Gross Profit was 376.517 + 554.822 + 412.029 + 383.282 = $1,727 Mil.
Total Current Assets was $6,096 Mil.
Total Assets was $8,101 Mil.
Property, Plant and Equipment(Net PPE) was $1,841 Mil.
Depreciation, Depletion and Amortization(DDA) was $137 Mil.
Selling, General & Admin. Expense(SGA) was $1,401 Mil.
Total Current Liabilities was $2,480 Mil.
Long-Term Debt was $2,927 Mil.
Net Income was 22.889 + 78.791 + 43.708 + 40.057 = $185 Mil.
Non Operating Income was 0.901 + 4.532 + 1.42 + 2.025 = $9 Mil.
Cash Flow from Operations was 25.39 + 312.21 + -67.096 + 81.362 = $352 Mil.
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 $7,327 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 $3,554 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)
=(35.45 / 4035.288) / (30.699 / 3748.903)
=0.008785 / 0.0081888
=1.0728

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)
=(554.822 / 3748.903) / (376.517 / 4035.288)
=0.4348312 / 0.42788767
=1.0162

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 - (6095.72 + 1840.53) / 8101.209) / (1 - (5539.081 + 1665.178) / 7326.985)
=0.02036227 / 0.01674986
=1.2157

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
=4035.288 / 3748.903
=1.0764

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))
=(118.245 / (118.245 + 1665.178)) / (137.185 / (137.185 + 1840.53))
=0.06630227 / 0.0693654
=0.9558

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)
=(1400.732 / 4035.288) / (1290.424 / 3748.903)
=0.3471207 / 0.34421376
=1.0084

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)
=((2926.697 + 2479.84) / 8101.209) / ((3553.588 + 1279.796) / 7326.985)
=0.66737409 / 0.65966888
=1.0117

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
=(185.445 - 8.878 - 351.866) / 8101.209
=-0.0216

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 -2.36 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

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 1.00571.00680.97810.96831.0171.00950.99090.99251.02771.0118
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

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.80440.97381.00430.82731.43551.03181.08291.04891.16081.0728
GMI 0.98990.98090.97610.97951.00151.00711.01451.01211.01691.0162
AQI 0.70390.80570.87880.89131.00210.89590.87690.92321.23311.2157
SGI 1.15641.07021.0311.00891.01341.06421.08411.08481.0961.0764
DEPI 1.07611.05481.06751.04481.01831.01311.0131.00810.96260.9558
SGAI 0.99251.04491.0451.02731.02770.9991.00551.03451.01181.0084
LVGI 0.97450.99531.0541.06311.11311.05971.0571.01151.01931.0117
TATA -0.01950.0044-0.0022-0.0018-0.008-0.0159-0.013-0.016-0.0174-0.0216
M-score -2.72-2.51-2.54-2.71-2.14-2.52-2.45-2.47-2.24-2.36
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