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Lululemon Athletica Beneish M-Score

: -2.09 (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 -2.09 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: -3.5   Med: -2.48   Max: 0.66
Current: -2.09

During the past 13 years, the highest Beneish M-Score of Lululemon Athletica was 0.66. The lowest was -3.50. And the median was -2.48.


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 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.07 -2.65 -2.59 -0.99 -2.70

Lululemon Athletica Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 -1.82 -3.06 -2.94 -2.70 -2.09

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 * 1.0309+0.528 * 0.9998+0.404 * 0.9481+0.892 * 1.335+0.115 * 0.974
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9689+4.679 * 0.026-0.327 * 1.1266
=-2.09

* 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 (Apr22) TTM:Last Year (Apr21) TTM:
Total Receivables was $78 Mil.
Revenue was 1613.463 + 2129.113 + 1450.421 + 1450.618 = $6,644 Mil.
Gross Profit was 870.393 + 1236.172 + 829.393 + 842.686 = $3,779 Mil.
Total Current Assets was $2,303 Mil.
Total Assets was $4,697 Mil.
Property, Plant and Equipment(Net PPE) was $1,795 Mil.
Depreciation, Depletion and Amortization(DDA) was $238 Mil.
Selling, General, & Admin. Expense(SGA) was $2,336 Mil.
Total Current Liabilities was $1,207 Mil.
Long-Term Debt & Capital Lease Obligation was $726 Mil.
Net Income was 189.998 + 434.504 + 187.788 + 208.074 = $1,020 Mil.
Non Operating Income was -0.022 + -1.284 + -24.112 + -8.047 = $-33 Mil.
Cash Flow from Operations was -243.256 + 730.984 + 158.352 + 285.663 = $932 Mil.
Total Receivables was $57 Mil.
Revenue was 1226.465 + 1729.549 + 1117.426 + 902.942 = $4,976 Mil.
Gross Profit was 700.314 + 1012.734 + 627.354 + 489.501 = $2,830 Mil.
Total Current Assets was $2,253 Mil.
Total Assets was $4,330 Mil.
Property, Plant and Equipment(Net PPE) was $1,494 Mil.
Depreciation, Depletion and Amortization(DDA) was $192 Mil.
Selling, General, & Admin. Expense(SGA) was $1,806 Mil.
Total Current Liabilities was $965 Mil.
Long-Term Debt & Capital Lease Obligation was $617 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)
=(78.391 / 6643.615) / (56.956 / 4976.382)
=0.01179945 / 0.01144526
=1.0309

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)
=(2829.903 / 4976.382) / (3778.644 / 6643.615)
=0.56866675 / 0.56876324
=0.9998

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 - (2303.24 + 1794.782) / 4697.212) / (1 - (2253.452 + 1493.824) / 4329.831)
=0.1275629 / 0.13454451
=0.9481

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
=6643.615 / 4976.382
=1.335

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))
=(192.431 / (192.431 + 1493.824)) / (238.191 / (238.191 + 1794.782))
=0.11411738 / 0.11716388
=0.974

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)
=(2336.251 / 6643.615) / (1806.054 / 4976.382)
=0.35165358 / 0.36292511
=0.9689

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)
=((726.27 + 1206.891) / 4697.212) / ((616.917 + 964.814) / 4329.831)
=0.41155498 / 0.3653101
=1.1266

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
=(1020.364 - -33.465 - 931.743) / 4697.212
=0.026

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 -2.09 suggests that the company is unlikely to be a manipulator.


Lululemon Athletica Beneish M-Score Related Terms

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Lululemon Athletica Business Description

Lululemon Athletica logo
Address
1818 Cornwall Avenue, Vancouver, BC, CAN, V6J 1C7
Lululemon Athletica Inc. designs, distributes, and markets athletic apparel 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 550 company-owned stores in 17 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Executives
Neuburger Nicole officer: Chief Brand Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Loehnis Alison director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J1C7
Maestrini Andre officer: EVP, International C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Choe Michelle Sun officer: Chief Product Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVE VANCOUVER A1 V6J 1C7
Burgoyne Celeste officer: Pres Americas&Global Guest C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVE VANCOUVER A1 V6J 1C7
Frank Meghan officer: Chief Financial Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Gibson Kourtney director C/O MARKETAXESS HOLDINGS INC. 55 HUDSON YARDS, 15TH FLOOR NEW YORK NY 10001
White Emily director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Ferris Stephanie director C/O VANTIV, INC. 8500 GOVERNORS HILL DRIVE CINCINNATI OH 45249
Murphy Glenn director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J1C7
Mcneill Jon director 45500 FREMONT BLVD FREMONT CA 94538
Casey Martin Michael director
Morfitt Martha A M director P.O. BOX 1441 MINNEAPOLIS MN 55440-1441
Henry Kathryn director C/O LULULEMON ATHLETICA, INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Mcdonald Calvin director, officer: Chief Executive Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7

Lululemon Athletica Headlines

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