Best Buy Co (BSP:BBYY34) Beneish M-Score : -2.66 (As of May. 14, 2024)

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What is Best Buy Co 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 -2.66 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:BBYY34' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31 Med: -2.65 Max: -2.42
Current: -2.66

During the past 13 years, the highest Beneish M-Score of Best Buy Co was -2.42. The lowest was -3.31. And the median was -2.65.

Best Buy Co Beneish M-Score Historical Data

The historical data trend for Best Buy Co'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.

Best Buy Co Beneish M-Score Chart

Best Buy Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Beneish M-Score

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-2.63

-3.31

-2.61

-2.42

-2.66

Best Buy Co 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	Get a 7-Day Free Trial															-2.42	-2.85	-2.90	-2.91	-2.66

Competitive Comparison of Best Buy Co's Beneish M-Score

For the Specialty Retail subindustry, Best Buy Co'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.

Best Buy Co's Beneish M-Score Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Best Buy Co's Beneish M-Score falls into.

Best Buy Co 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 Best Buy Co 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 * 0.864

0.528 * 0.9684

0.404 * 1.1385

0.892 * 0.9022

0.115 * 0.9694

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0532

4.679 * -0.01021

0.327 * 0.9663

-2.70

This Year (Jan24) TTM:

Last Year (Jan23) TTM:

Total Receivables was R$4,618 Mil.
Revenue was 72031.957 + 49325.36 + 46003.192 + 47538.54 = R$214,899 Mil.
Gross Profit was 14759.518 + 11284.769 + 10657.11 + 10796.225 = R$47,498 Mil.
Total Current Assets was R$38,839 Mil.
Total Assets was R$73,611 Mil.
Property, Plant and Equipment(Net PPE) was R$24,680 Mil.
Depreciation, Depletion and Amortization(DDA) was R$4,568 Mil.
Selling, General, & Admin. Expense(SGA) was R$38,964 Mil.
Total Current Liabilities was R$38,898 Mil.
Long-Term Debt & Capital Lease Obligation was R$16,481 Mil.
Net Income was 2262.372 + 1329.702 + 1315.337 + 1225.246 = R$6,133 Mil.
Non Operating Income was -649.202 + 40.447 + 192.02 + 150.645 = R$-266 Mil.
Cash Flow from Operations was 5803.476 + 551.093 + 2457.856 + -1662.116 = R$7,150 Mil.

Total Receivables was R$5,924 Mil.
Revenue was 76507.067 + 55603.983 + 55448.138 + 50623.291 = R$238,182 Mil.
Gross Profit was 15265.068 + 12247.897 + 12277.073 + 11187.809 = R$50,978 Mil.
Total Current Assets was R$45,702 Mil.
Total Assets was R$82,052 Mil.
Property, Plant and Equipment(Net PPE) was R$26,470 Mil.
Depreciation, Depletion and Amortization(DDA) was R$4,722 Mil.
Selling, General, & Admin. Expense(SGA) was R$41,002 Mil.
Total Current Liabilities was R$46,621 Mil.
Long-Term Debt & Capital Lease Obligation was R$17,259 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)
	=	(4618.19 / 214899.049)	/	(5924.3 / 238182.479)
	=	0.02149	/	0.024873
	=	0.864

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)
	=	(50977.847 / 238182.479)	/	(47497.622 / 214899.049)
	=	0.214029	/	0.221023
	=	0.9684

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 - (38839.025 + 24679.528) / 73610.699)	/	(1 - (45701.744 + 26469.836) / 82052.337)
	=	0.137102	/	0.12042
	=	1.1385

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
	=	214899.049	/	238182.479
	=	0.9022

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))
	=	(4722.282 / (4722.282 + 26469.836))	/	(4567.736 / (4567.736 + 24679.528))
	=	0.151393	/	0.156177
	=	0.9694

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)
	=	(38964.084 / 214899.049)	/	(41002.456 / 238182.479)
	=	0.181313	/	0.172147
	=	1.0532

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)
	=	((16480.888 + 38898.044) / 73610.699)	/	((17258.873 + 46620.764) / 82052.337)
	=	0.752322	/	0.778523
	=	0.9663

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
	=	(6132.657 - -266.09	-	7150.309)	/	73610.699
	=	-0.01021

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.

Best Buy Co has a M-score of -2.70 suggests that the company is unlikely to be a manipulator.

Best Buy Co Beneish M-Score Related Terms

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Best Buy Co (BSP:BBYY34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Best Buy Co Inc (BSP:BBYY34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

BBY:USA BBY:Mexico BUY:Germany

Address

7601 Penn Avenue South, Richfield, MN, USA, 55423

Website

https://www.investors.bestbuy.com

With $46.3 billion in consolidated fiscal 2023 sales, Best Buy is the largest pure-play consumer electronics retailer in the U.S., boasting roughly 8.5% share of the U.S. market and north of 35% share of offline sales, per our calculations, CTA, and Euromonitor data. The firm generates the bulk of its sales in-store, with mobile phones and tablets, computers, and appliances representing its three largest categories. Recent investments in e-commerce fulfillment, accelerated by the COVID-19 pandemic, have seen the U.S. e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.

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