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Bassett Furniture Industries Beneish M-Score

: -1.91 (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 -1.91 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSET' s Beneish M-Score Range Over the Past 10 Years
Min: -3.77   Med: -2.69   Max: -1.84
Current: -1.91

During the past 13 years, the highest Beneish M-Score of Bassett Furniture Industries was -1.84. The lowest was -3.77. And the median was -2.69.


Bassett Furniture Industries Beneish M-Score Historical Data

The historical data trend for Bassett Furniture Industries'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.

Bassett Furniture Industries Annual Data
Trend Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.77 -2.71 -2.23 -2.72 -2.30

Bassett Furniture Industries Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
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 -2.85 -2.64 -2.30 -2.52 -1.91

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Bassett Furniture Industries'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.

   

Bassett Furniture Industries Beneish M-Score Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Bassett Furniture Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Bassett Furniture Industries's Beneish M-Score falls into.



Bassett Furniture Industries 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 Bassett Furniture Industries 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 * 0.6208+0.528 * 1.053+0.404 * 0.8279+0.892 * 1.175+0.115 * 0.7677
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9465+4.679 * 0.1674-0.327 * 0.8835
=-1.91

* 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 (May22) TTM:Last Year (May21) TTM:
Total Receivables was $24.6 Mil.
Revenue was 128.706 + 117.864 + 129.896 + 118.906 = $495.4 Mil.
Gross Profit was 65.939 + 57.393 + 58.466 + 52.121 = $233.9 Mil.
Total Current Assets was $221.7 Mil.
Total Assets was $413.8 Mil.
Property, Plant and Equipment(Net PPE) was $165.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.8 Mil.
Selling, General, & Admin. Expense(SGA) was $204.8 Mil.
Total Current Liabilities was $121.1 Mil.
Long-Term Debt & Capital Lease Obligation was $88.8 Mil.
Net Income was 47.118 + 5.573 + 5.041 + 3.016 = $60.7 Mil.
Non Operating Income was -0.627 + -0.629 + -0.475 + -0.347 = $-2.1 Mil.
Cash Flow from Operations was -11.812 + 2.866 + 0.886 + 1.627 = $-6.4 Mil.
Total Receivables was $33.7 Mil.
Revenue was 109.997 + 101.655 + 118.383 + 91.559 = $421.6 Mil.
Gross Profit was 57.086 + 53.403 + 56.192 + 42.945 = $209.6 Mil.
Total Current Assets was $176.5 Mil.
Total Assets was $418.5 Mil.
Property, Plant and Equipment(Net PPE) was $208.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.1 Mil.
Selling, General, & Admin. Expense(SGA) was $184.2 Mil.
Total Current Liabilities was $130.4 Mil.
Long-Term Debt & Capital Lease Obligation was $109.8 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)
=(24.56 / 495.372) / (33.671 / 421.594)
=0.0495789 / 0.07986594
=0.6208

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)
=(209.626 / 421.594) / (233.919 / 495.372)
=0.49722245 / 0.47220876
=1.053

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 - (221.722 + 164.962) / 413.753) / (1 - (176.471 + 208.938) / 418.479)
=0.06542309 / 0.07902428
=0.8279

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
=495.372 / 421.594
=1.175

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))
=(13.134 / (13.134 + 208.938)) / (13.769 / (13.769 + 164.962))
=0.05914298 / 0.07703756
=0.7677

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)
=(204.83 / 495.372) / (184.184 / 421.594)
=0.41348724 / 0.43687529
=0.9465

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)
=((88.803 + 121.086) / 413.753) / ((109.832 + 130.449) / 418.479)
=0.50728091 / 0.57417696
=0.8835

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
=(60.748 - -2.078 - -6.433) / 413.753
=0.1674

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.

Bassett Furniture Industries has a M-score of -1.91 suggests that the company is unlikely to be a manipulator.


Bassett Furniture Industries Beneish M-Score Related Terms

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Bassett Furniture Industries Business Description

Bassett Furniture Industries logo
Traded in Other Exchanges
N/A
Address
3525 Fairystone Park Highway, P.O. Box 626, Bassett, VA, USA, 24055
Bassett Furniture Industries Inc is a manufacturer, importer, and retailer of home furnishings products in the United States. It operates through the following segments: The Wholesale segment focuses on the design, manufacture, sourcing, sale, and distribution of furniture products. The Retail segment consists of company-owned stores. The Logistical Services segment offers shipping, delivery, and warehousing services.
Executives
Battle Emma S. director 101 NORTH CHERRY STREET, SUITE 501 WINSTON SALEM NC 27101
Lucas Stefanie Jane officer: SVP, Chief Merchandising Offic P.O. BOX 626 BASSETT VA 24055
Kelchner-strong Kara Ann officer: SVP, Customer Experience Offic P.O. BOX 626 BASSETT VA 24055
Hamlet Virginia W. director P.O. BOX 626 BASSETT VA 24055
Belk John R director BELK INC 2801 WEST TYVOLA ROAD CHARLOTTE NC 28217-4500
Baker David C officer: SVP, Corporate Retail 1012 SHERATON COURT MARTINSVILLE VA 24112
Hawn Jack Leroy Jr officer: Pres. of Zenith Freight Lines 1123 4TH STREET SW CONOVER NC 28613
Cohenour Bruce officer: SR VP/SALES & MERCHANDISING HOOKER FURNITURE CORPORATION 440 EAST COMMONWEALTH BLVD MARTINSVILLE VA 24112
Mcdowell John Walter director 2826 LAZY LANE WINSTON SALEM NC 27106
Daniel John Michael officer: V P, Chief Accounting Officer P O BOX 626 3525 FAIRYSTONE PARK HWY BASSETT VA 24055
Cashman Kristina K director
Camp Jason officer: Senior VP, Retail C/O RESTORATION HARDWARE, INC. 15 KOCH ROAD, SUITE J CORTE MADERA CA 94925
Pond Dale director
Stonecipher David A director BASSETT FURNITURE INDUSTRIES INC PO BOX 626 BASSETT VA 24055
Haworth Howard H director BASSETT FURNITURE INDUSTRIES INC P O BOX 626 BASSETT VA 24055

Bassett Furniture Industries Headlines

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