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LULU (Lululemon Athletica) Beneish M-Score : -2.96 (As of Oct. 31, 2024)


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What is Lululemon Athletica 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 -2.96 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: -3.38   Med: -2.67   Max: 7.32
Current: -2.96

During the past 13 years, the highest Beneish M-Score of Lululemon Athletica was 7.32. The lowest was -3.38. And the median was -2.67.


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 Beneish M-Score Chart

Lululemon Athletica Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.33 -0.95 -2.87 -1.99 -3.04

Lululemon Athletica Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Beneish M-Score Get a 7-Day Free Trial 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 -2.67 -2.84 -3.04 -2.97 -2.96

Competitive Comparison of Lululemon Athletica's Beneish M-Score

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

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 * 0.9007+0.528 * 0.9695+0.404 * 1.0181+0.892 * 1.1302+0.115 * 1.0042
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0282+4.679 * -0.104763-0.327 * 0.9962
=-2.96

* 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 (Jul24) TTM:Last Year (Jul23) TTM:
Total Receivables was $337 Mil.
Revenue was 2371.078 + 2208.891 + 3205.103 + 2204.218 = $9,989 Mil.
Gross Profit was 1412.185 + 1275.068 + 1903.425 + 1256.664 = $5,847 Mil.
Total Current Assets was $3,572 Mil.
Total Assets was $6,744 Mil.
Property, Plant and Equipment(Net PPE) was $2,918 Mil.
Depreciation, Depletion and Amortization(DDA) was $401 Mil.
Selling, General, & Admin. Expense(SGA) was $3,547 Mil.
Total Current Liabilities was $1,469 Mil.
Long-Term Debt & Capital Lease Obligation was $1,181 Mil.
Net Income was 392.922 + 321.421 + 669.468 + 248.714 = $1,633 Mil.
Non Operating Income was 17.994 + 23.283 + 17.83 + -64.659 = $-6 Mil.
Cash Flow from Operations was 443.14 + 127.524 + 1384.098 + 389.853 = $2,345 Mil.
Total Receivables was $331 Mil.
Revenue was 2209.165 + 2000.792 + 2771.838 + 1856.889 = $8,839 Mil.
Gross Profit was 1298.511 + 1150.805 + 1527.619 + 1038.852 = $5,016 Mil.
Total Current Assets was $3,324 Mil.
Total Assets was $5,992 Mil.
Property, Plant and Equipment(Net PPE) was $2,446 Mil.
Depreciation, Depletion and Amortization(DDA) was $337 Mil.
Selling, General, & Admin. Expense(SGA) was $3,052 Mil.
Total Current Liabilities was $1,386 Mil.
Long-Term Debt & Capital Lease Obligation was $977 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)
=(337.09 / 9989.29) / (331.137 / 8838.684)
=0.033745 / 0.037465
=0.9007

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)
=(5015.787 / 8838.684) / (5847.342 / 9989.29)
=0.567481 / 0.585361
=0.9695

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 - (3571.744 + 2917.84) / 6744.135) / (1 - (3323.933 + 2446.37) / 5992.458)
=0.037744 / 0.037072
=1.0181

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
=9989.29 / 8838.684
=1.1302

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))
=(337.475 / (337.475 + 2446.37)) / (400.591 / (400.591 + 2917.84))
=0.121226 / 0.120717
=1.0042

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)
=(3546.715 / 9989.29) / (3052.231 / 8838.684)
=0.355052 / 0.345326
=1.0282

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)
=((1180.823 + 1468.651) / 6744.135) / ((976.736 + 1386.37) / 5992.458)
=0.392856 / 0.394347
=0.9962

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
=(1632.525 - -5.552 - 2344.615) / 6744.135
=-0.104763

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 -2.96 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

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 700 company-owned stores in about 20 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Executives
Calvin Mcdonald director, officer: Chief Executive Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Morfitt Martha A M director P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
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
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
Stephanie Ferris director C/O VANTIV, INC., 8500 GOVERNORS HILL DRIVE, CINCINNATI OH 45249
Martin Michael Casey director

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