Advance Auto Parts (BUE:AAP) Beneish M-Score : -2.94 (As of Dec. 15, 2024)

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What is Advance Auto Parts Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Advance Auto Parts's Beneish M-Score or its related term are showing as below:

BUE:AAP' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94 Med: -2.58 Max: -0.41
Current: -2.94

During the past 13 years, the highest Beneish M-Score of Advance Auto Parts was -0.41. The lowest was -2.94. And the median was -2.58.

Advance Auto Parts Beneish M-Score Historical Data

The historical data trend for Advance Auto Parts's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Advance Auto Parts Beneish M-Score Chart

Advance Auto Parts Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.47

-2.61

-2.67

-2.72

-2.39

Advance Auto Parts Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.48	-2.39	-2.63	-2.59	-2.94

Competitive Comparison of Advance Auto Parts's Beneish M-Score

For the Specialty Retail subindustry, Advance Auto Parts's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Advance Auto Parts's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Advance Auto Parts's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Advance Auto Parts's Beneish M-Score falls into.

Advance Auto Parts Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Advance Auto Parts for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.5976

0.528 * 1.0002

0.404 * 0.6463

0.892 * 3.5016

0.115 * 0.684

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9981

4.679 * -0.016374

0.327 * 1.0113

-0.88

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ARS635,825 Mil.
Revenue was 2041665.356 + 2402673.927 + 2869769.044 + 1477550.258 = ARS8,791,659 Mil.
Gross Profit was 862957.011 + 997862.8 + 1203994.865 + 535370.942 = ARS3,600,186 Mil.
Total Current Assets was ARS7,122,825 Mil.
Total Assets was ARS11,851,008 Mil.
Property, Plant and Equipment(Net PPE) was ARS3,687,339 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS228,243 Mil.
Selling, General, & Admin. Expense(SGA) was ARS3,451,115 Mil.
Total Current Liabilities was ARS5,316,660 Mil.
Long-Term Debt & Capital Lease Obligation was ARS3,618,454 Mil.
Net Income was -5716.307 + 40289.44 + 33710.111 + -12680.847 = ARS55,602 Mil.
Non Operating Income was 2274.546 + 8069.35 + -1086.825 + 1910.773 = ARS11,168 Mil.
Cash Flow from Operations was 66650.958 + 76230.332 + 2264.64 + 93333.301 = ARS238,479 Mil.

Total Receivables was ARS303,863 Mil.
Revenue was 776260.861 + 644655.835 + 675145.71 + 414723.338 = ARS2,510,786 Mil.
Gross Profit was 286107.58 + 273709.198 + 288803.883 + 179770.252 = ARS1,028,391 Mil.
Total Current Assets was ARS2,211,846 Mil.
Total Assets was ARS4,286,514 Mil.
Property, Plant and Equipment(Net PPE) was ARS1,492,196 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS61,969 Mil.
Selling, General, & Admin. Expense(SGA) was ARS987,489 Mil.
Total Current Liabilities was ARS1,797,322 Mil.
Long-Term Debt & Capital Lease Obligation was ARS1,398,266 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(635824.591 / 8791658.585)	/	(303863.343 / 2510785.744)
	=	0.072321	/	0.121023
	=	0.5976

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)
	=	(1028390.913 / 2510785.744)	/	(3600185.618 / 8791658.585)
	=	0.409589	/	0.4095
	=	1.0002

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (7122825.22 + 3687339.122) / 11851008.371)	/	(1 - (2211846.438 + 1492195.94) / 4286513.871)
	=	0.087827	/	0.135885
	=	0.6463

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	8791658.585	/	2510785.744
	=	3.5016

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(61968.825 / (61968.825 + 1492195.94))	/	(228243.055 / (228243.055 + 3687339.122))
	=	0.039873	/	0.058291
	=	0.684

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(3451115.119 / 8791658.585)	/	(987488.831 / 2510785.744)
	=	0.392544	/	0.393299
	=	0.9981

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((3618454.489 + 5316660.487) / 11851008.371)	/	((1398265.858 + 1797321.903) / 4286513.871)
	=	0.753954	/	0.745498
	=	1.0113

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
	=	(55602.397 - 11167.844	-	238479.231)	/	11851008.371
	=	-0.016374

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Advance Auto Parts has a M-score of -0.88 signals that the company is likely to be a manipulator.

Advance Auto Parts Beneish M-Score Related Terms

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Advance Auto Parts Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Advance Auto Parts Inc (BUE:AAP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

AAP:USA AAP:Mexico 0H9G:UK AWN:Germany AWN:Germany A1AP34:Brazil

Address

4200 Six Forks Road, Raleigh, NC, USA, 27609

Website

https://www.advanceautoparts.com

Advance Auto Parts is a leading auto parts retailer in North America with more than 4,000 store and branch locations. About 55% of the firm's sales are geared toward the professional channel, with the remaining 45% going to the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units conducive to various vehicle makes and models. The retailer primarily competes on the basis of inventory availability and service speed, making the operating efficiency of its hub and spoke distribution model critical to meeting customer needs.