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Lululemon Athletica (Lululemon Athletica) Beneish M-Score

: -3.04 (As of Today)
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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 -3.04 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LULU' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Med: -2.73   Max: -0.95
Current: -3.04

During the past 13 years, the highest Beneish M-Score of Lululemon Athletica was -0.95. The lowest was -3.15. And the median was -2.73.


Lululemon Athletica Beneish M-Score Historical Data

The historical data trend for Lululemon Athletica'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.

Lululemon Athletica Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.33 -0.95 -2.87 -1.99 -3.04

Lululemon Athletica Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.99 -2.26 -2.67 -2.84 -3.04

Competitive Comparison

For the Apparel Retail subindustry, Lululemon Athletica'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.


Lululemon Athletica Beneish M-Score Distribution

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

* The bar in red indicates where Lululemon Athletica's Beneish M-Score falls into.



Lululemon Athletica 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 Lululemon Athletica 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 * 0.8166+0.528 * 0.9498+0.404 * 0.8338+0.892 * 1.186+0.115 * 0.9697
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0388+4.679 * -0.100753-0.327 * 0.9352
=-3.04

* 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.

This Year (Jan24) TTM:Last Year (Jan23) TTM:
Total Receivables was $309 Mil.
Revenue was 3205.103 + 2204.218 + 2209.165 + 2000.792 = $9,619 Mil.
Gross Profit was 1903.425 + 1256.664 + 1298.511 + 1150.805 = $5,609 Mil.
Total Current Assets was $4,061 Mil.
Total Assets was $7,092 Mil.
Property, Plant and Equipment(Net PPE) was $2,811 Mil.
Depreciation, Depletion and Amortization(DDA) was $379 Mil.
Selling, General, & Admin. Expense(SGA) was $3,397 Mil.
Total Current Liabilities was $1,631 Mil.
Long-Term Debt & Capital Lease Obligation was $1,154 Mil.
Net Income was 669.468 + 248.714 + 341.603 + 290.405 = $1,550 Mil.
Non Operating Income was 17.83 + -64.659 + 7.362 + 8.025 = $-31 Mil.
Cash Flow from Operations was 1384.098 + 389.853 + 476.71 + 45.503 = $2,296 Mil.
Total Receivables was $319 Mil.
Revenue was 2771.838 + 1856.889 + 1868.328 + 1613.463 = $8,111 Mil.
Gross Profit was 1527.619 + 1038.852 + 1055.476 + 870.393 = $4,492 Mil.
Total Current Assets was $3,159 Mil.
Total Assets was $5,607 Mil.
Property, Plant and Equipment(Net PPE) was $2,239 Mil.
Depreciation, Depletion and Amortization(DDA) was $292 Mil.
Selling, General, & Admin. Expense(SGA) was $2,757 Mil.
Total Current Liabilities was $1,492 Mil.
Long-Term Debt & Capital Lease Obligation was $862 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)
=(308.502 / 9619.278) / (318.547 / 8110.518)
=0.032071 / 0.039276
=0.8166

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)
=(4492.34 / 8110.518) / (5609.405 / 9619.278)
=0.553891 / 0.583142
=0.9498

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 - (4060.577 + 2811.421) / 7091.941) / (1 - (3159.453 + 2239.033) / 5607.038)
=0.031013 / 0.037195
=0.8338

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
=9619.278 / 8110.518
=1.186

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))
=(291.791 / (291.791 + 2239.033)) / (379.384 / (379.384 + 2811.421))
=0.115295 / 0.118899
=0.9697

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)
=(3397.218 / 9619.278) / (2757.447 / 8110.518)
=0.353168 / 0.339984
=1.0388

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)
=((1154.012 + 1631.261) / 7091.941) / ((862.362 + 1492.198) / 5607.038)
=0.392738 / 0.419929
=0.9352

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
=(1550.19 - -31.442 - 2296.164) / 7091.941
=-0.100753

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.

Lululemon Athletica has a M-score of -3.04 suggests that the company is unlikely to be a manipulator.


Lululemon Athletica Beneish M-Score Related Terms

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Lululemon Athletica (Lululemon Athletica) Business Description

Address
1818 Cornwall Avenue, Vancouver, BC, CAN, V6J 1C7
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 680 company-owned stores in 19 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Executives
Meghan Frank officer: Chief Financial Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Nicole Neuburger officer: Chief Brand Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Calvin Mcdonald director, officer: Chief Executive Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Celeste Burgoyne officer: Pres Americas&Global Guest C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVE, VANCOUVER A1 V6J 1C7
Shane Grant director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Michelle Sun Choe officer: Chief Product Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVE, VANCOUVER A1 V6J 1C7
David M Mussafer director C/O ADVENT INTERNATIONAL CORP, 75 STATE ST 29TH FLOOR, BOSTON MA 02104
Isabel Mahe director ONE APPLE PARK WAY, MS169:2CL, CUPERTINO CA 95014
Kathryn Henry director C/O LULULEMON ATHLETICA, INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Kourtney Gibson director C/O MARKETAXESS HOLDINGS INC., 55 HUDSON YARDS, 15TH FLOOR, NEW YORK NY 10001
Alison Loehnis director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J1C7
Andre Maestrini officer: EVP, International C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Glenn Murphy director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J1C7
Martin Michael Casey director
Jon Mcneill director 45500 FREMONT BLVD, FREMONT CA 94538

Lululemon Athletica (Lululemon Athletica) Headlines