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Perry Ellis International, Inc. (NAS:PERY)
Beneish M-Score
-2.84 (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.

Perry Ellis International, Inc. has a M-score of -2.84 suggests that the company is not a manipulator.

PERY' s 10-Year Beneish M-Score Range
Min: -3.53   Max: 3.25
Current: -2.84

-3.53
3.25

During the past 13 years, the highest Beneish M-Score of Perry Ellis International, Inc. was 3.25. The lowest was -3.53. And the median was -2.55.


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 Perry Ellis International, 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 * 0.8917+0.528 * 0.9857+0.404 * 0.892+0.892 * 0.9409+0.115 * 1.193
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0985+4.679 * -0.0325-0.327 * 1.0285
=-2.84

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $146.4 Mil.
Revenue was 216.079 + 222.121 + 211.705 + 262.319 = $912.2 Mil.
Gross Profit was 74.197 + 71.364 + 68.546 + 88.681 = $302.8 Mil.
Total Current Assets was $424.4 Mil.
Total Assets was $706.7 Mil.
Property, Plant and Equipment(Net PPE) was $59.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.2 Mil.
Selling, General & Admin. Expense(SGA) was $272.7 Mil.
Total Current Liabilities was $146.2 Mil.
Long-Term Debt was $181.0 Mil.
Net Income was -28.247 + -3.022 + -2.83 + 11.32 = $-22.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 6.585 + -20.416 + 28.297 + -14.246 = $0.2 Mil.
Accounts Receivable was $174.5 Mil.
Revenue was 258.345 + 236.248 + 209.437 + 265.523 = $969.6 Mil.
Gross Profit was 84.341 + 75.795 + 69.325 + 87.74 = $317.2 Mil.
Total Current Assets was $443.1 Mil.
Total Assets was $763.1 Mil.
Property, Plant and Equipment(Net PPE) was $50.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.9 Mil.
Selling, General & Admin. Expense(SGA) was $263.9 Mil.
Total Current Liabilities was $169.3 Mil.
Long-Term Debt was $174.2 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)
=(146.392 / 912.224) / (174.484 / 969.553)
=0.16047813 / 0.17996334
=0.8917

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)
=(71.364 / 969.553) / (74.197 / 912.224)
=0.3271621 / 0.33192286
=0.9857

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 - (424.389 + 59.912) / 706.735) / (1 - (443.104 + 50.749) / 763.129)
=0.31473466 / 0.35285777
=0.892

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
=912.224 / 969.553
=0.9409

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))
=(13.943 / (13.943 + 50.749)) / (13.211 / (13.211 + 59.912))
=0.21552897 / 0.18066819
=1.193

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)
=(272.716 / 912.224) / (263.854 / 969.553)
=0.29895727 / 0.27213984
=1.0985

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)
=((181.006 + 146.192) / 706.735) / ((174.202 + 169.331) / 763.129)
=0.46297127 / 0.45016373
=1.0285

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
=(-22.779 - 0 - 0.22) / 706.735
=-0.0325

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.

Perry Ellis International, Inc. has a M-score of -2.84 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.

Perry Ellis International, Inc. Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.89870.87391.05640.84261.04991.10550.88340.90571.21230.8917
GMI 1.04261.02530.92990.98451.03280.98960.92411.08261.00910.9857
AQI 0.90870.95710.99860.98021.01171.061.06590.94130.96060.892
SGI 1.29781.29370.9771.0410.98550.88591.04781.24080.98870.9409
DEPI 0.97360.94770.9180.97030.87190.94071.01050.93370.89171.193
SGAI 1.00690.98451.07421.01211.11330.95491.0480.91071.07341.0985
LVGI 0.90460.99770.92330.83161.14420.86541.11290.85661.05661.0285
TATA -0.0484-0.063-0.0105-0.0777-0.0085-0.13410.00560.0361-0.0815-0.0325
M-score -2.52-2.64-2.53-2.92-2.55-3.05-2.58-2.11-2.73-2.84

Perry Ellis International, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 1.03580.90570.86031.10771.05361.21230.98251.08250.94760.8917
GMI 1.04931.08261.0671.05691.04871.00910.99740.9980.98870.9857
AQI 0.97390.94131.03090.98891.02980.96060.97310.98220.98160.892
SGI 1.22861.24081.11611.0460.98180.98871.00891.01661.01470.9409
DEPI 0.95520.93370.91840.91840.92030.89171.01471.10191.12211.193
SGAI 0.95280.91070.98971.02211.031.07341.05651.03891.06471.0985
LVGI 1.04880.85660.94951.01830.97981.05661.00350.99830.94821.0285
TATA 0.07470.0361-0.03-0.0769-0.0942-0.0815-0.05370.0141-0.0008-0.0325
M-score -1.89-2.11-2.59-2.69-2.86-2.73-2.76-2.33-2.51-2.84
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