PETM has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
PetSmart Inc has a M-score of -2.65 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of PetSmart Inc was -1.66. The lowest was -4.00. And the median was -2.78.
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 PetSmart 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 * 1.1438||+||0.528 * 1.0068||+||0.404 * 1.0458||+||0.892 * 1.0049||+||0.115 * 1.0069|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9791||+||4.679 * -0.0717||-||0.327 * 1.0042|
|This Year (Jul14) TTM:||Last Year (Jul13) TTM:|
|Accounts Receivable was $79 Mil.|
Revenue was 1729.939 + 1729.132 + 1804.866 + 1695.168 = $6,959 Mil.
Gross Profit was 515.117 + 530.838 + 565.998 + 504.973 = $2,117 Mil.
Total Current Assets was $1,375 Mil.
Total Assets was $2,566 Mil.
Property, Plant and Equipment(Net PPE) was $954 Mil.
Depreciation, Depletion and Amortization(DDA) was $235 Mil.
Selling, General & Admin. Expense(SGA) was $1,413 Mil.
Total Current Liabilities was $788 Mil.
Long-Term Debt was $450 Mil.
Net Income was 98.116 + 103.766 + 131.516 + 92.221 = $426 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 91.864 + 136.506 + 273.907 + 107.238 = $610 Mil.
|Accounts Receivable was $69 Mil.
Revenue was 1705.997 + 1710.596 + 1879.166 + 1629.511 = $6,925 Mil.
Gross Profit was 515.22 + 529.746 + 593.438 + 482.512 = $2,121 Mil.
Total Current Assets was $1,373 Mil.
Total Assets was $2,550 Mil.
Property, Plant and Equipment(Net PPE) was $951 Mil.
Depreciation, Depletion and Amortization(DDA) was $237 Mil.
Selling, General & Admin. Expense(SGA) was $1,436 Mil.
Total Current Liabilities was $770 Mil.
Long-Term Debt was $455 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(79.446 / 6959.105)||/||(69.118 / 6925.27)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(530.838 / 6925.27)||/||(515.117 / 6959.105)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1374.889 + 954.109) / 2565.747)||/||(1 - (1373.431 + 951.499) / 2549.906)|
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.
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))|
|=||(236.568 / (236.568 + 951.499))||/||(235.183 / (235.183 + 954.109))|
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)|
|=||(1412.966 / 6959.105)||/||(1436.042 / 6925.27)|
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)|
|=||((449.873 + 787.96) / 2565.747)||/||((454.673 + 770.389) / 2549.906)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(425.619 - 0||-||609.515)||/||2565.747|
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.
PetSmart Inc has a M-score of -2.65 suggests that the company will not be a manipulator.
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
PetSmart Inc Annual Data
PetSmart Inc Quarterly Data