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bebe stores Inc (NAS:BEBE)
Altman Z-Score
2.76 (As of Today)

bebe stores Inc has a Z-score of 2.76, indicating it is in Grey Zones. This implies that bebe stores Inc is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

BEBE' s Altman Z-Score Range Over the Past 10 Years
Min: 1.71   Max: 29.24
Current: 2.74

1.71
29.24

During the past 13 years, bebe stores Inc's highest Altman Z-Score was 29.24. The lowest was 1.71. And the median was 7.93.

Definition

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

bebe stores Inc's Altman Z-Score for today is calculated with this formula:

 Z = 1.2 * X1 + 1.4 * X2 + 3.3 * X3 + 0.6 * X4 + 1.0 * X5 = 1.2 * 0.4028 + 1.4 * -0.1646 + 3.3 * -0.1111 + 0.6 * 0.9543 + 1.0 * 2.3025 = 2.76

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

Trailing Twelve Months (TTM) ended in Sep. 2016:
Total Assets was \$167.0 Mil.
Total Current Assets was \$96.0 Mil.
Total Current Liabilities was \$28.8 Mil.
Retained Earnings was \$-27.5 Mil.
Pretax Income was -8.211 + 25.093 + -30.01 + -5.428 = \$-18.6 Mil.
Interest Expense was 0 + 0 + 0 + 0 = \$0.0 Mil.
Revenue was 87.238 + 94.925 + 79.939 + 122.447 = \$384.5 Mil.
Market Capitalization (Today) was \$43.7 Mil.
Total Liabilities was \$45.8 Mil.

 X1 = Working Capital / Total Assets = (Total Current Assets - Total Current Liabilities) / Total Assets = (96.048 - 28.769) / 167.012 = 0.4028

 X2 = Retained Earnings / Total Assets = -27.496 / 167.012 = -0.1646

 X3 = Earnings Before Interest and Taxes / Total Assets = (Pretax Income + Interest Expense) / Total Assets = (-18.556 + 0) / 167.012 = -0.1111

 X4 = Market Value Equity / Book Value of Total Liabilities = Market Capitalization / Total Liabilities = 43.690 / 45.781 = 0.9543

 X5 = Revenue / Total Assets = 384.549 / 167.012 = 2.3025

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

bebe stores Inc has a Z-score of 2.76 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firms assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firms assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firms assets.

Be Aware

Z score does not apply to financial companies.

Related Terms

Historical Data

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

bebe stores Inc Annual Data

 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 X1 0.6649 0.2298 0.4098 0.3234 0.464 0.4384 0.3827 0.3736 0.3384 0.3928 X2 0.6072 0.5793 0.5814 0.4193 0.4859 0.4833 0.349 0.1443 0.0359 -0.1099 X3 0.195 0.1602 0.029 0.0251 0.0153 0.0505 -0.1223 -0.2198 -0.1143 -0.153 X4 14.834 7.8243 5.4186 3.0296 6.0706 5.6109 5.3819 2.8356 2.4556 0.7861 X5 1.1052 1.1503 1.0552 0.8696 1.1182 1.1541 1.3432 1.5724 1.9777 2.1934 Z-score 12.30 7.46 5.71 3.75 6.05 5.89 5.12 3.20 3.53 2.48 Zones Safe Zones Safe Zones Safe Zones Safe Zones Safe Zones Safe Zones Safe Zones Safe Zones Safe Zones Grey Zones

bebe stores Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 X1 0.3736 0.3732 0.3691 0.343 0.3384 0.2937 0.3021 0.2594 0.3928 0.4028 X2 0.1443 0.1097 0.1033 0.0577 0.0359 -0.0478 -0.0782 -0.2799 -0.1099 -0.1646 X3 -0.2198 -0.245 -0.2266 -0.1943 -0.1143 -0.1678 -0.2028 -0.36 -0.153 -0.1111 X4 0.2849 0.2494 0.228 0.4181 0.2455 0.121 0.0747 0.0763 0.0787 0.1225 X5 1.5724 1.6978 1.7217 1.8977 1.9777 2.153 2.1924 2.5171 2.1934 2.3025 Z-score 1.67 1.64 1.70 2.00 2.20 1.96 1.82 1.29 2.05 2.26 Zones Distress Zones Distress Zones Distress Zones Grey Zones Grey Zones Grey Zones Grey Zones Distress Zones Grey Zones Grey Zones
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