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Zumiez Inc (NAS:ZUMZ)
Beneish M-Score
-2.87 (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.

Zumiez Inc has a M-score of -2.85 suggests that the company is not a manipulator.

ZUMZ' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: -1.34
Current: -2.87

-10000000
-1.34

During the past 13 years, the highest Beneish M-Score of Zumiez Inc was -1.34. The lowest was -10000000.00. And the median was -2.73.


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 Zumiez 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 * 0.9676+0.528 * 1.0767+0.404 * 1.1688+0.892 * 0.9622+0.115 * 1.0119
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0542+4.679 * -0.0782-0.327 * 1.112
=-2.85

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $14.6 Mil.
Revenue was 178.272 + 172.97 + 242.434 + 204.32 = $798.0 Mil.
Gross Profit was 54.844 + 49.958 + 84.257 + 70.059 = $259.1 Mil.
Total Current Assets was $212.7 Mil.
Total Assets was $432.6 Mil.
Property, Plant and Equipment(Net PPE) was $136.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.1 Mil.
Selling, General & Admin. Expense(SGA) was $227.5 Mil.
Total Current Liabilities was $103.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -0.838 + -2.137 + 13.149 + 9.653 = $19.8 Mil.
Non Operating Income was -0.256 + 0.499 + -0.606 + -0.071 = $-0.4 Mil.
Cash Flow from Operations was 3.313 + 3.13 + 48.131 + -0.501 = $54.1 Mil.
Accounts Receivable was $15.7 Mil.
Revenue was 179.819 + 177.61 + 258.569 + 213.341 = $829.3 Mil.
Gross Profit was 57.773 + 56.535 + 97.778 + 77.86 = $289.9 Mil.
Total Current Assets was $240.0 Mil.
Total Assets was $457.4 Mil.
Property, Plant and Equipment(Net PPE) was $142.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $30.7 Mil.
Selling, General & Admin. Expense(SGA) was $224.3 Mil.
Total Current Liabilities was $98.7 Mil.
Long-Term Debt was $0.0 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)
=(14.576 / 797.996) / (15.656 / 829.339)
=0.01826576 / 0.01887768
=0.9676

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)
=(289.946 / 829.339) / (259.118 / 797.996)
=0.34961096 / 0.3247109
=1.0767

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 - (212.729 + 136.505) / 432.561) / (1 - (239.985 + 141.994) / 457.355)
=0.19263641 / 0.16480852
=1.1688

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
=797.996 / 829.339
=0.9622

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))
=(30.712 / (30.712 + 141.994)) / (29.102 / (29.102 + 136.505))
=0.17782822 / 0.17572929
=1.0119

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)
=(227.467 / 797.996) / (224.255 / 829.339)
=0.28504779 / 0.27040209
=1.0542

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)
=((0 + 103.778) / 432.561) / ((0 + 98.671) / 457.355)
=0.2399153 / 0.21574269
=1.112

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
=(19.827 - -0.434 - 54.073) / 432.561
=-0.0782

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.

Zumiez Inc has a M-score of -2.85 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 local exchange's currency.

Zumiez Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.71470.36822.98020.93160.88320.79550.81351.31060.9865
GMI 1.01051.0910.99590.94320.9661.00650.99741.02161.059
AQI 0.8761.02141.14370.9460.70914.16910.88080.88821.097
SGI 1.27921.07150.99741.17481.16091.20421.08211.12040.9909
DEPI 0.95040.87750.83131.34551.0311.090.95990.97620.9756
SGAI 1.01151.04651.11280.91020.9341.01421.01071.01821.0417
LVGI 0.67770.66621.14260.98591.05450.97210.95531.11781.0107
TATA -0.0415-0.0907-0.1386-0.0804-0.0838-0.0596-0.0437-0.0936-0.0458
M-score -2.63-3.28-1.34-2.76-2.97-1.46-2.82-2.60-2.66

Zumiez Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 1.02130.99921.0551.31061.12190.8610.99470.98650.94960.9676
GMI 1.00411.00961.01161.02161.00861.01981.03341.0591.08231.0767
AQI 0.95330.92620.89710.88820.77150.93071.0421.0971.29291.1688
SGI 1.07381.06591.08021.12041.11841.09471.05190.99090.96770.9622
DEPI 0.9860.99650.98220.97620.9760.9430.96160.97560.99061.0119
SGAI 0.98220.97510.95321.01821.03081.0571.09381.04171.04671.0542
LVGI 1.07911.10081.07541.11780.9170.91470.91411.01071.16931.112
TATA -0.0699-0.0764-0.0531-0.0936-0.0614-0.0441-0.0498-0.0458-0.0609-0.0782
M-score -2.76-2.83-2.66-2.60-2.62-2.74-2.63-2.66-2.74-2.85
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