Switch to:
Pep Boys - Manny Moe & Jack (NYSE:PBY)
Beneish M-Score
-2.88 (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.

Pep Boys - Manny Moe & Jack has a M-score of -2.88 suggests that the company is not a manipulator.

PBY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05   Max: -1.57
Current: -2.88

-3.05
-1.57

During the past 13 years, the highest Beneish M-Score of Pep Boys - Manny Moe & Jack was -1.57. The lowest was -3.05. And the median was -2.60.


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 Pep Boys - Manny Moe & Jack 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 * 1.0031+0.528 * 1.0027+0.404 * 0.8056+0.892 * 1.0007+0.115 * 1.0115
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0001+4.679 * -0.0714-0.327 * 0.9746
=-2.88

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $32 Mil.
Revenue was 508.136 + 526.546 + 542.261 + 502.424 = $2,079 Mil.
Gross Profit was 117.797 + 127.572 + 133.767 + 99.684 = $479 Mil.
Total Current Assets was $797 Mil.
Total Assets was $1,492 Mil.
Property, Plant and Equipment(Net PPE) was $579 Mil.
Depreciation, Depletion and Amortization(DDA) was $69 Mil.
Selling, General & Admin. Expense(SGA) was $476 Mil.
Total Current Liabilities was $614 Mil.
Long-Term Debt was $193 Mil.
Net Income was 1.266 + 4.81 + 11.893 + -26.668 = $-9 Mil.
Non Operating Income was 0.345 + 0.334 + 0.372 + 0.013 = $1 Mil.
Cash Flow from Operations was 13.671 + 33.446 + 33.829 + 15.819 = $97 Mil.
Accounts Receivable was $32 Mil.
Revenue was 517.584 + 525.773 + 538.821 + 495.733 = $2,078 Mil.
Gross Profit was 118.334 + 124.297 + 133.126 + 104.016 = $480 Mil.
Total Current Assets was $807 Mil.
Total Assets was $1,572 Mil.
Property, Plant and Equipment(Net PPE) was $614 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General & Admin. Expense(SGA) was $476 Mil.
Total Current Liabilities was $642 Mil.
Long-Term Debt was $230 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)
=(31.743 / 2079.367) / (31.622 / 2077.911)
=0.0152657 / 0.01521817
=1.0031

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)
=(479.773 / 2077.911) / (478.82 / 2079.367)
=0.23089199 / 0.230272
=1.0027

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 - (797.481 + 579.3) / 1492.355) / (1 - (806.91 + 614.326) / 1572.401)
=0.07744404 / 0.09613642
=0.8056

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
=2079.367 / 2077.911
=1.0007

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))
=(74.016 / (74.016 + 614.326)) / (68.907 / (68.907 + 579.3))
=0.10752794 / 0.106304
=1.0115

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)
=(476.328 / 2079.367) / (475.962 / 2077.911)
=0.22907356 / 0.22905793
=1.0001

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)
=((192.5 + 613.818) / 1492.355) / ((229.5 + 642.251) / 1572.401)
=0.54029906 / 0.55440756
=0.9746

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
=(-8.699 - 1.064 - 96.765) / 1492.355
=-0.0714

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.

Pep Boys - Manny Moe & Jack has a M-score of -2.88 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.

Pep Boys - Manny Moe & Jack Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 1.20950.79931.04481.08580.80420.8171.2720.91451.06481.2224
GMI 1.18150.9011.10970.9420.94910.96851.06381.05030.99681.034
AQI 0.74852.06610.64171.84440.82161.15921.58080.88631.15880.8419
SGI 0.97191.01580.95290.90160.99131.04071.03771.01310.98841.0087
DEPI 0.96440.87430.9571.03290.99130.94640.93721.11760.82191.0081
SGAI 0.97681.03520.99561.03780.89490.98770.96751.06970.97741.0326
LVGI 1.04011.00650.93470.95010.95171.00841.01590.98861.00921.0114
TATA -0.0043-0.0628-0.07210.0046-0.0443-0.0534-0.0288-0.0217-0.0338-0.0363
M-score -2.35-2.59-2.89-2.14-2.94-2.82-2.07-2.66-2.55-2.49

Pep Boys - Manny Moe & Jack Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 0.89650.97161.06481.10341.1191.28231.22241.05311.05551.0031
GMI 1.02020.98920.99680.95871.00181.03151.0341.0571.02071.0027
AQI 1.0841.06091.15881.17221.19811.07280.84190.81720.80580.8056
SGI 1.01271.01770.98840.98430.98250.98871.00871.00911.01041.0007
DEPI 1.19340.87580.82190.79870.75691.00321.00811.02651.05351.0115
SGAI 1.05351.04930.97741.00340.99080.98371.03260.99990.99221.0001
LVGI 0.97991.0141.00921.00821.01551.01071.01140.99480.98710.9746
TATA 0.0250.028-0.0338-0.0368-0.0294-0.0087-0.0363-0.0447-0.0612-0.0714
M-score -2.38-2.37-2.55-2.55-2.47-2.23-2.49-2.67-2.76-2.88
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)
FEEDBACK