Switch to:
GuruFocus has detected 3 Warning Signs with bebe stores Inc $BEBE.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
bebe stores Inc (NAS:BEBE)
Beneish M-Score
-3.12 (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.

bebe stores Inc has a M-score of -3.12 suggests that the company is not a manipulator.

BEBE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.03   Max: 2.87
Current: -3.12

-4.03
2.87

During the past 13 years, the highest Beneish M-Score of bebe stores Inc was 2.87. The lowest was -4.03. 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 bebe stores 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 * 1.0721+0.528 * 1.0432+0.404 * 0.9451+0.892 * 0.8682+0.115 * 0.3707
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1449+4.679 * -0.0882-0.327 * 1.2487
=-3.12

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $7.9 Mil.
Revenue was 65.716 + 101.931 + 87.238 + 94.925 = $349.8 Mil.
Gross Profit was 15.364 + 35.028 + 27.495 + 29.328 = $107.2 Mil.
Total Current Assets was $97.3 Mil.
Total Assets was $109.6 Mil.
Property, Plant and Equipment(Net PPE) was $9.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.2 Mil.
Selling, General & Admin. Expense(SGA) was $181.6 Mil.
Total Current Liabilities was $32.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -51.811 + -5.231 + -7.778 + 25.086 = $-39.7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -38.838 + 20.847 + -7.765 + -4.311 = $-30.1 Mil.
Accounts Receivable was $8.4 Mil.
Revenue was 79.939 + 122.447 + 96.283 + 104.259 = $402.9 Mil.
Gross Profit was 22.971 + 41.68 + 27.863 + 36.316 = $128.8 Mil.
Total Current Assets was $79.2 Mil.
Total Assets was $160.1 Mil.
Property, Plant and Equipment(Net PPE) was $77.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.5 Mil.
Selling, General & Admin. Expense(SGA) was $182.7 Mil.
Total Current Liabilities was $37.7 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)
=(7.862 / 349.81) / (8.447 / 402.928)
=0.02247506 / 0.02096404
=1.0721

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)
=(128.83 / 402.928) / (107.215 / 349.81)
=0.31973454 / 0.30649495
=1.0432

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 - (97.317 + 9.935) / 109.603) / (1 - (79.184 + 77.261) / 160.078)
=0.02145014 / 0.02269519
=0.9451

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
=349.81 / 402.928
=0.8682

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))
=(21.512 / (21.512 + 77.261)) / (14.152 / (14.152 + 9.935))
=0.21779231 / 0.58753685
=0.3707

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)
=(181.61 / 349.81) / (182.71 / 402.928)
=0.51916755 / 0.4534557
=1.1449

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 + 32.199) / 109.603) / ((0 + 37.661) / 160.078)
=0.29377845 / 0.23526656
=1.2487

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
=(-39.734 - 0 - -30.067) / 109.603
=-0.0882

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.

bebe stores Inc has a M-score of -3.12 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.

bebe stores Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 1.02081.15470.73611.37820.90221.66990.86110.74391.46951.2981
GMI 1.03141.04571.13741.0121.02490.96831.20621.02460.95791.0958
AQI 1.222510.95560.58290.92830.9380.88870.86620.35050.69590.4697
SGI 1.15861.02490.87690.80191.02011.05390.8910.91781.00680.9196
DEPI 0.97810.99540.82990.87251.04341.28230.87990.99571.06720.7447
SGAI 1.02711.06351.12710.98550.98850.9541.18391.0930.85511.1349
LVGI 0.86691.01471.06362.23140.40961.05681.31231.56230.85980.9685
TATA -0.0382-0.0538-0.0488-0.0774-0.0536-0.0467-0.2002-0.1594-0.01220.0622
M-score -2.361.46-3.22-3.11-2.61-2.07-3.73-3.98-2.17-2.19

bebe stores Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.73971.31781.46950.97551.12151.44351.29811.5481.58611.0721
GMI 1.02891.00250.95790.94511.00411.03111.09581.0521.02241.0432
AQI 0.78340.74410.69590.98211.14820.50790.46970.44230.34050.9451
SGI 0.95621.01941.00681.00990.98110.94290.91960.9110.87580.8682
DEPI 1.12921.19441.06720.95110.79730.68130.74470.75430.86590.3707
SGAI 1.05390.97050.85510.8920.90831.04691.13491.06921.07881.1449
LVGI 1.46261.36580.85981.02341.01181.20510.96850.85451.03451.2487
TATA -0.1634-0.1339-0.0122-0.0493-0.0476-0.12510.06220.0548-0.0122-0.0882
M-score -3.74-2.99-2.17-2.76-2.56-3.00-2.19-1.99-2.40-3.12
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK