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Lands' End Beneish M-Score

: -3.01 (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 -3.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

NAS:LE' s Beneish M-Score Range Over the Past 10 Years
Min: -7.88   Med: -2.52   Max: 188.87
Current: -3.01
-7.88
188.87

During the past 13 years, the highest Beneish M-Score of Lands' End was 188.87. The lowest was -7.88. And the median was -2.52.

Lands' End Beneish M-Score Historical Data

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

* Premium members only.

Lands' End Annual Data
Jan02 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.27 -2.19 -2.24 -2.89 -2.07

Lands' End Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
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 -2.42 -2.07 -2.18 -2.52 -3.01
Competitive Comparison
* 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.

Lands' End Beneish M-Score Distribution

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


Lands' End 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 Lands' End 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 * 0.8758+0.528 * 1.003+0.404 * 0.96+0.892 * 1.0254+0.115 * 0.8643
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9566+4.679 * -0.0909-0.327 * 0.9732
=-3.01

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

This Year (Oct20) TTM:Last Year (Oct19) TTM:
Accounts Receivable was $34 Mil.
Revenue was 359.982 + 312.083 + 217.008 + 549.478 = $1,439 Mil.
Gross Profit was 163.455 + 135.422 + 94.155 + 218.758 = $612 Mil.
Total Current Assets was $645 Mil.
Total Assets was $1,200 Mil.
Property, Plant and Equipment(Net PPE) was $186 Mil.
Depreciation, Depletion and Amortization(DDA) was $36 Mil.
Selling, General, & Admin. Expense(SGA) was $522 Mil.
Total Current Liabilities was $341 Mil.
Long-Term Debt & Capital Lease Obligation was $443 Mil.
Net Income was 7.176 + 4.376 + -20.643 + 25.516 = $16 Mil.
Non Operating Income was 0.25 + -1.333 + 0.173 + 0.272 = $-1 Mil.
Cash Flow from Operations was -34.048 + 88.182 + -80.198 + 152.24 = $126 Mil.
 Accounts Receivable was $38 Mil.
Revenue was 340.023 + 298.267 + 262.433 + 502.252 = $1,403 Mil.
Gross Profit was 154.175 + 129.085 + 119.874 + 195.303 = $598 Mil.
Total Current Assets was $603 Mil.
Total Assets was $1,162 Mil.
Property, Plant and Equipment(Net PPE) was $186 Mil.
Depreciation, Depletion and Amortization(DDA) was $30 Mil.
Selling, General, & Admin. Expense(SGA) was $532 Mil.
Total Current Liabilities was $369 Mil.
Long-Term Debt & Capital Lease Obligation was $411 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(34.238 / 1438.551) / (38.125 / 1402.975)
=0.02380034 / 0.0271744
=0.8758

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)
=(598.437 / 1402.975) / (611.79 / 1438.551)
=0.42654858 / 0.42528211
=1.003

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 - (645 + 186.041) / 1200.154) / (1 - (603.207 + 186.431) / 1161.842)
=0.3075547 / 0.32035681
=0.96

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
=1438.551 / 1402.975
=1.0254

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))
=(30.239 / (30.239 + 186.431)) / (35.826 / (35.826 + 186.041))
=0.13956247 / 0.16147512
=0.8643

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)
=(521.605 / 1438.551) / (531.796 / 1402.975)
=0.36259055 / 0.37904881
=0.9566

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)
=((442.869 + 341.073) / 1200.154) / ((410.577 + 369.202) / 1161.842)
=0.65320117 / 0.67115752
=0.9732

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
=(16.425 - -0.638 - 126.176) / 1200.154
=-0.0909

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.

Lands' End has a M-score of -3.01 suggests that the company is unlikely to be a manipulator.

Lands' End Beneish M-Score Headlines

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