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Perry Ellis International Inc (NAS:PERY)
Beneish M-Score
-3.06 (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 -3.06 suggests that the company is not a manipulator.

PERY' s 10-Year Beneish M-Score Range
Min: -3.53   Max: 3.25
Current: -3.06

-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 -2.56.


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 * 1.1019+0.528 * 0.9791+0.404 * 1.0666+0.892 * 0.991+0.115 * 1.0717
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9976+4.679 * -0.1483-0.327 * 0.9852
=-3.06

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
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.
Net Income was 9.411 + -42.897 + -0.437 + -1.616 = $-35.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -39.668 + 21.31 + -13.145 + 94.285 = $62.8 Mil.
Accounts Receivable was $183.1 Mil.
Revenue was 257.314 + 216.079 + 222.121 + 211.705 = $907.2 Mil.
Gross Profit was 87.665 + 74.197 + 71.364 + 68.546 = $301.8 Mil.
Total Current Assets was $436.9 Mil.
Total Assets was $719.1 Mil.
Property, Plant and Equipment(Net PPE) was $60.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.4 Mil.
Selling, General & Admin. Expense(SGA) was $271.8 Mil.
Total Current Liabilities was $88.6 Mil.
Long-Term Debt was $237.2 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)
=(200.002 / 899.072) / (183.146 / 907.219)
=0.22245382 / 0.20187628
=1.1019

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)
=(74.568 / 907.219) / (90.1 / 899.072)
=0.33263413 / 0.33972696
=0.9791

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 - (379.783 + 64.723) / 662.815) / (1 - (436.92 + 60.113) / 719.094)
=0.32936641 / 0.30880664
=1.0666

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
=899.072 / 907.219
=0.991

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))
=(13.417 / (13.417 + 60.113)) / (13.281 / (13.281 + 64.723))
=0.18246974 / 0.1702605
=1.0717

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)
=(268.681 / 899.072) / (271.757 / 907.219)
=0.29884258 / 0.2995495
=0.9976

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)
=((181.552 + 114.286) / 662.815) / ((237.218 + 88.563) / 719.094)
=0.4463357 / 0.45304369
=0.9852

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
=(-35.539 - 0 - 62.782) / 662.815
=-0.1483

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 -3.06 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 0.87391.05640.84261.04991.10550.88340.90261.21650.84620.9573
GMI 1.02530.92990.98451.03280.98960.92411.08261.00910.98570.9749
AQI 0.95710.99860.98021.01171.061.06590.94130.96060.8921.027
SGI 1.29370.9771.0410.98550.88591.04781.24080.98870.94090.9756
DEPI 0.94770.9180.97030.87190.94071.01050.93370.89171.1931.0836
SGAI 0.98451.07421.01211.11330.95491.0480.91071.07341.09851.0102
LVGI 0.99770.92330.83161.14420.86541.11290.85661.05661.02851.0434
TATA -0.063-0.0105-0.0777-0.0085-0.13410.00560.0361-0.0815-0.0325-0.1348
M-score -2.64-2.53-2.92-2.55-3.05-2.58-2.11-2.73-2.88-3.18

Perry Ellis International Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1.21650.94751.03571.0460.84621.16480.88590.92460.95731.1019
GMI 1.00910.99740.9980.98870.98570.98970.970.96240.97490.9791
AQI 0.96060.97310.98220.98160.8920.84740.90330.91281.0271.0666
SGI 0.98871.00891.01661.01470.94090.93880.92820.93070.97560.991
DEPI 0.89171.01471.10191.12211.1931.0731.0211.06961.08361.0717
SGAI 1.07341.05651.03891.06471.09851.07941.09141.05671.01020.9976
LVGI 1.05661.00350.99830.94821.02851.09861.00331.05661.04340.9852
TATA -0.0815-0.05370.0141-0.0008-0.03250.0091-0.0864-0.096-0.1348-0.1483
M-score -2.73-2.79-2.37-2.42-2.88-2.44-3.12-3.14-3.18-3.06
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