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Perry Ellis International Inc (NAS:PERY)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

PERY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37   Max: 3.25
Current: -2.79

-3.37
3.25

During the past 13 years, the highest Beneish M-Score of Perry Ellis International Inc was 3.25. The lowest was -3.37. 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 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 * 0.9684+0.528 * 0.9377+0.404 * 0.9226+0.892 * 0.9948+0.115 * 0.9359
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0333+4.679 * -0.0448-0.327 * 0.9618
=-2.79

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $192.7 Mil.
Revenue was 261.294 + 214.363 + 205.439 + 213.299 = $894.4 Mil.
Gross Profit was 95.084 + 79.73 + 73.295 + 75.942 = $324.1 Mil.
Total Current Assets was $372.8 Mil.
Total Assets was $628.6 Mil.
Property, Plant and Equipment(Net PPE) was $64.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.4 Mil.
Selling, General & Admin. Expense(SGA) was $276.2 Mil.
Total Current Liabilities was $98.3 Mil.
Long-Term Debt was $171.5 Mil.
Net Income was 14.25 + -17.695 + 2.273 + -1.281 = $-2.5 Mil.
Non Operating Income was 0 + 0 + 0 + -5.121 = $-5.1 Mil.
Cash Flow from Operations was -39 + 11.527 + -1.838 + 60.144 = $30.8 Mil.
Accounts Receivable was $200.0 Mil.
Revenue was 266.414 + 217.686 + 211.44 + 203.532 = $899.1 Mil.
Gross Profit was 90.1 + 74.568 + 70.307 + 70.464 = $305.4 Mil.
Total Current Assets was $379.8 Mil.
Total Assets was $662.8 Mil.
Property, Plant and Equipment(Net PPE) was $64.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.3 Mil.
Selling, General & Admin. Expense(SGA) was $268.7 Mil.
Total Current Liabilities was $114.3 Mil.
Long-Term Debt was $181.6 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)
=(192.668 / 894.395) / (200.002 / 899.072)
=0.21541713 / 0.22245382
=0.9684

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)
=(305.439 / 899.072) / (324.051 / 894.395)
=0.33972696 / 0.36231307
=0.9377

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 - (372.845 + 64.763) / 628.628) / (1 - (379.783 + 64.723) / 662.815)
=0.30386811 / 0.32936641
=0.9226

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
=894.395 / 899.072
=0.9948

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))
=(13.281 / (13.281 + 64.723)) / (14.401 / (14.401 + 64.763))
=0.1702605 / 0.1819135
=0.9359

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)
=(276.189 / 894.395) / (268.681 / 899.072)
=0.3087998 / 0.29884258
=1.0333

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)
=((171.548 + 98.313) / 628.628) / ((181.552 + 114.286) / 662.815)
=0.42928568 / 0.4463357
=0.9618

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
=(-2.453 - -5.121 - 30.833) / 628.628
=-0.0448

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 -2.79 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

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 1.05640.84261.04991.10550.88340.90261.21650.84620.95730.9487
GMI 0.92990.98451.03280.98960.92411.08261.00910.98570.97490.9598
AQI 0.99860.98021.01171.061.06590.94130.96060.8921.0270.9531
SGI 0.9771.0410.98550.88591.04781.24080.98870.94090.97561.0107
DEPI 0.9180.97030.87190.94071.01050.93370.89171.1931.08360.911
SGAI 1.07421.01211.11330.95491.0480.91071.07341.09851.01021.0155
LVGI 0.92330.83161.14420.86541.11290.85661.05661.02851.04340.9349
TATA -0.0105-0.1077-0.0085-0.13410.00560.0361-0.0815-0.0325-0.1348-0.0519
M-score -2.53-3.06-2.55-3.05-2.58-2.11-2.73-2.88-3.18-2.79

Perry Ellis International Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 1.16480.88590.92460.95731.10191.05060.84870.94870.96841.058
GMI 0.98970.970.96240.97490.97910.98740.97980.95980.93770.938
AQI 0.84740.90330.91281.0271.06661.07081.05280.95310.92260.9652
SGI 0.93880.92820.93070.97560.9911.01091.01631.01070.99480.9713
DEPI 1.0731.0211.06961.08361.07171.03990.97780.9110.93590.9273
SGAI 1.07941.09141.05671.01020.99760.98190.99251.01551.03331.0696
LVGI 1.09861.00331.05661.04340.98520.96060.95360.93490.96180.8982
TATA 0.0091-0.0864-0.096-0.1348-0.1483-0.0956-0.111-0.0519-0.04480.0439
M-score -2.44-3.12-3.14-3.18-3.06-2.83-3.10-2.79-2.79-2.28
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