bebe stores (bebe stores) Beneish M-Score

: -3.61 (As of Today)

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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for bebe stores's Beneish M-Score or its related term are showing as below:

BEBE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.03 Med: -2.66 Max: 98.38
Current: -3.61

During the past 13 years, the highest Beneish M-Score of bebe stores was 98.38. The lowest was -4.03. And the median was -2.66.

bebe stores Beneish M-Score Historical Data

The historical data trend for bebe stores's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

bebe stores Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Beneish M-Score

-1.15

-2.35

bebe stores Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score																45.77	48.67	-2.46	-2.35	-3.61

Competitive Comparison

For the Rental & Leasing Services subindustry, bebe stores's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

bebe stores Beneish M-Score Distribution

For the Business Services industry and Industrials sector, bebe stores's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where bebe stores's Beneish M-Score falls into.

bebe stores Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 bebe stores for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.0303

0.528 * 1.0231

0.404 * 0.9891

0.892 * 1.0402

0.115 * 0.9689

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.052

4.679 * -0.054787

0.327 * 1.0315

-3.61

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was $0.57 Mil.
Revenue was 13.159 + 14.186 + 15.201 + 14.236 = $56.78 Mil.
Gross Profit was 8.167 + 8.709 + 9.704 + 8.846 = $35.43 Mil.
Total Current Assets was $25.34 Mil.
Total Assets was $88.11 Mil.
Property, Plant and Equipment(Net PPE) was $10.62 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.49 Mil.
Selling, General, & Admin. Expense(SGA) was $40.07 Mil.
Total Current Liabilities was $12.66 Mil.
Long-Term Debt & Capital Lease Obligation was $28.01 Mil.
Net Income was 0.002 + -0.606 + 0.262 + -0.321 = $-0.66 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.896 + 2.39 + 0.365 + -0.487 = $4.16 Mil.

Total Receivables was $18.09 Mil.
Revenue was 13.257 + 13.676 + 14.283 + 13.37 = $54.59 Mil.
Gross Profit was 8.189 + 8.686 + 9.415 + 8.551 = $34.84 Mil.
Total Current Assets was $27.58 Mil.
Total Assets was $95.53 Mil.
Property, Plant and Equipment(Net PPE) was $10.79 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.37 Mil.
Selling, General, & Admin. Expense(SGA) was $36.62 Mil.
Total Current Liabilities was $13.13 Mil.
Long-Term Debt & Capital Lease Obligation was $29.62 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(0.57 / 56.782)	/	(18.089 / 54.586)
	=	0.010038	/	0.331385
	=	0.0303

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)
	=	(34.841 / 54.586)	/	(35.426 / 56.782)
	=	0.638277	/	0.623895
	=	1.0231

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (25.339 + 10.622) / 88.105)	/	(1 - (27.583 + 10.786) / 95.529)
	=	0.591839	/	0.598352
	=	0.9891

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	56.782	/	54.586
	=	1.0402

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(16.368 / (16.368 + 10.786))	/	(17.487 / (17.487 + 10.622))
	=	0.602784	/	0.622114
	=	0.9689

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(40.071 / 56.782)	/	(36.617 / 54.586)
	=	0.705699	/	0.670813
	=	1.052

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((28.013 + 12.656) / 88.105)	/	((29.617 + 13.131) / 95.529)
	=	0.461597	/	0.447487
	=	1.0315

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
	=	(-0.663 - 0	-	4.164)	/	88.105
	=	-0.054787

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

bebe stores has a M-score of -3.61 suggests that the company is unlikely to be a manipulator.

bebe stores Beneish M-Score Related Terms

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bebe stores (bebe stores) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » bebe stores Inc (OTCPK:BEBE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

552 Wisconsin Street, San Francisco, CA, USA, 94107

Website

https://www.bebe.com

bebe stores Inc was a women's apparel company that designs, develops, and produces a distinctive line of contemporary women's apparel and accessories. It also owns and operates, through subsidiaries, rent-to-own Buddy's Home Furnishings franchise stores located in states in the southeastern U.S., offering furniture, appliances, and electronics to consumers through rent-to-own agreements, along with other investments.

Executives

Kenneth M Young	director	C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367
Manny Mashouf	director, 10 percent owner, officer: Chairman and Founder, other: Chairman and Founder	400 VALLEY DRIVE, BRISBANE CA 94005
B. Riley Financial, Inc.	director, 10 percent owner	11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
Nicholas John Capuano	director	C/O B RILEY FINANCIAL, 11100 SANTA MONICA BLVD, STE.800, LOS ANGELES CA 90025
Joseph Scirocco	officer: Managing Director, PAO, PFO	QUIKSILVER, INC, 15202 GRAHAM STREET, HUNTINGTON BEACH CA 92649
Miller Lloyd I Iii	10 percent owner
Walter J Parks	officer: PRESIDENT COO INTERIM CFO
James F. Wiggett	director, officer: CHIEF EXECUTIVE OFFICER	BEBE STORES, INC., 10345 WEST OLYMPIC BOULEVARD, LOS ANGELES CA 90064
Robert Galvin	director	78 GOLF LANE, RIDGEFIELD CT 06877
Blair W Lambert	director	C/O THE GYMBOREE CORPORATION, 500 HOWARD STREET, SAN FRANCISCO CA 94105
Brett Brewer	director
Seth R Johnson	director
Darren Horvath	officer: CONTROLLER/ PAO	C/O BEBE STORES, INC., 400 VALLEY DRIVE, BRISBANE CA 94005
Narender Singh	director	400 VALLEY DRIVE, BRISBANE CA 94005
Steve Birkhold	officer: CHIEF EXECUTIVE OFFICER	400 VALLEY DRIVE, BRISBANE CA 94005