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Cabela's Inc (NYSE:CAB)
Beneish M-Score
-2.20 (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 -2.20 signals that the company is a manipulator.

CAB' s 10-Year Beneish M-Score Range
Min: -3.07   Max: 0.84
Current: -2.2

-3.07
0.84

During the past 13 years, the highest Beneish M-Score of Cabela's Inc was 0.84. The lowest was -3.07. 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 * 1.4355+0.528 * 1.0015+0.404 * 0.8636+0.892 * 1.0134+0.115 * 1.0289
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0277+4.679 * -0.008-0.327 * 1.1131
=-2.20

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $62 Mil.
Revenue was 1274.624 + 886.002 + 761.201 + 725.823 = $3,648 Mil.
Gross Profit was 522.318 + 393.502 + 353.683 + 317.858 = $1,587 Mil.
Total Current Assets was $5,938 Mil.
Total Assets was $7,675 Mil.
Property, Plant and Equipment(Net PPE) was $1,626 Mil.
Depreciation, Depletion and Amortization(DDA) was $113 Mil.
Selling, General & Admin. Expense(SGA) was $1,251 Mil.
Total Current Liabilities was $2,121 Mil.
Long-Term Debt was $3,071 Mil.
Net Income was 78.61 + 53.839 + 43.517 + 25.749 = $202 Mil.
Non Operating Income was 0.867 + 0.916 + 1.039 + 2.102 = $5 Mil.
Cash Flow from Operations was 297.02 + -85.955 + 102.972 + -56.058 = $258 Mil.
Accounts Receivable was $43 Mil.
Revenue was 1189.447 + 850.828 + 756.805 + 802.497 = $3,600 Mil.
Gross Profit was 500.71 + 380.896 + 343.34 + 343.802 = $1,569 Mil.
Total Current Assets was $4,987 Mil.
Total Assets was $6,397 Mil.
Property, Plant and Equipment(Net PPE) was $1,303 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General & Admin. Expense(SGA) was $1,202 Mil.
Total Current Liabilities was $1,113 Mil.
Long-Term Debt was $2,775 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)
=(62.358 / 3647.65) / (42.868 / 3599.577)
=0.01709539 / 0.01190918
=1.4355

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)
=(393.502 / 3599.577) / (522.318 / 3647.65)
=0.43581454 / 0.4351736
=1.0015

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 - (5937.672 + 1626.053) / 7675.317) / (1 - (4986.512 + 1302.654) / 6396.864)
=0.01453907 / 0.01683606
=0.8636

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
=3647.65 / 3599.577
=1.0134

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))
=(93.407 / (93.407 + 1302.654)) / (113.097 / (113.097 + 1626.053))
=0.06690753 / 0.06503004
=1.0289

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)
=(1251.325 / 3647.65) / (1201.519 / 3599.577)
=0.34304963 / 0.3337945
=1.0277

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)
=((3071.031 + 2121.04) / 7675.317) / ((2774.897 + 1112.78) / 6396.864)
=0.6764634 / 0.60774733
=1.1131

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
=(201.715 - 4.924 - 257.979) / 7675.317
=-0.008

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 -2.20 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

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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.72640.88311.05620.8461.19140.80440.97381.00430.82731.4355
GMI 0.96350.98771.00151.00571.01430.98990.98090.97610.97951.0015
AQI 0.81820.78910.73140.72250.67730.70390.80570.87880.89130.8636
SGI 1.07741.10731.15581.17441.18661.15641.07021.0311.00891.0134
DEPI 1.06141.05611.05811.04951.05521.07611.05481.06751.04481.0289
SGAI 1.00640.99090.97240.98320.97770.99251.04491.0451.02731.0277
LVGI 1.01551.09141.14221.03181.03870.97450.99531.0541.06311.1131
TATA -0.0369-0.0117-0.0304-0.0245-0.01-0.01950.0044-0.0022-0.0018-0.008
M-score -2.93-2.66-2.57-2.69-2.31-2.72-2.51-2.54-2.71-2.20
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