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ConAgra Foods Inc (NYSE:CAG)
Beneish M-Score
-3.21 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

ConAgra Foods Inc has a M-score of -3.21 suggests that the company is not a manipulator.

CAG' s 10-Year Beneish M-Score Range
Min: -3.21   Max: -1.27
Current: -3.21

-3.21
-1.27

During the past 13 years, the highest Beneish M-Score of ConAgra Foods Inc was -1.27. The lowest was -3.21. And the median was -2.68.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 ConAgra Foods Inc 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 * 0.8857+0.528 * 1.0051+0.404 * 1.0009+0.892 * 0.8924+0.115 * 0.9685
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4056+4.679 * -0.0988-0.327 * 0.9868
=-3.21

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (May15) TTM:Last Year (May14) TTM:
Accounts Receivable was $973 Mil.
Revenue was 4104.7 + 3876.7 + 4150 + 3701 = $15,832 Mil.
Gross Profit was 892.4 + 823.8 + 888.5 + 703.8 = $3,309 Mil.
Total Current Assets was $3,668 Mil.
Total Assets was $17,542 Mil.
Property, Plant and Equipment(Net PPE) was $3,608 Mil.
Depreciation, Depletion and Amortization(DDA) was $592 Mil.
Selling, General & Admin. Expense(SGA) was $3,472 Mil.
Total Current Liabilities was $3,310 Mil.
Long-Term Debt was $6,889 Mil.
Net Income was 209.2 + -954.1 + 10 + 482.3 = $-253 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 740.1 + 322.8 + 184.1 + 233.6 = $1,481 Mil.
Accounts Receivable was $1,231 Mil.
Revenue was 4435.5 + 4389.7 + 4713.9 + 4201.8 = $17,741 Mil.
Gross Profit was 905.5 + 975.2 + 1014.7 + 830.9 = $3,726 Mil.
Total Current Assets was $4,231 Mil.
Total Assets was $19,366 Mil.
Property, Plant and Equipment(Net PPE) was $3,812 Mil.
Depreciation, Depletion and Amortization(DDA) was $603 Mil.
Selling, General & Admin. Expense(SGA) was $2,768 Mil.
Total Current Liabilities was $2,642 Mil.
Long-Term Debt was $8,768 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(972.9 / 15832.4) / (1230.8 / 17740.9)
=0.06144994 / 0.06937641
=0.8857

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)
=(823.8 / 17740.9) / (892.4 / 15832.4)
=0.21004008 / 0.20897021
=1.0051

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3667.7 + 3608.1) / 17542.2) / (1 - (4230.8 + 3811.9) / 19366.4)
=0.58524016 / 0.58470857
=1.0009

4. SGI = Sales Growth Index

Ratio of sales 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
=15832.4 / 17740.9
=0.8924

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(602.9 / (602.9 + 3811.9)) / (592.3 / (592.3 + 3608.1))
=0.13656338 / 0.14101038
=0.9685

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(3472.1 / 15832.4) / (2768 / 17740.9)
=0.21930345 / 0.15602365
=1.4056

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((6888.9 + 3310.2) / 17542.2) / ((8767.6 + 2642.4) / 19366.4)
=0.5814037 / 0.58916474
=0.9868

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
=(-252.6 - 0 - 1480.6) / 17542.2
=-0.0988

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

ConAgra Foods Inc has a M-score of -3.21 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

ConAgra Foods Inc Annual Data

May06May07May08May09May10May11May12May13May14May15
DSRI 1.03760.67670.99040.79691.14590.98161.011.19070.83740.8838
GMI 1.00410.96951.08941.0520.87931.07161.1110.92751.09291.0063
AQI 0.90660.95190.95771.23030.95380.96621.12941.24460.98071.0009
SGI 0.90051.02731.0981.1010.94881.01851.0781.16811.14270.8944
DEPI 0.92540.88621.23780.9890.97340.92980.99721.15450.75740.9685
SGAI 1.19090.93730.90570.87251.13180.81521.22640.91521.13391.403
LVGI 0.95411.00810.99810.88410.98580.97671.01461.35540.97830.9868
TATA -0.0672-0.01750.05760.075-0.0655-0.0469-0.051-0.0313-0.0644-0.0988
M-score -2.91-2.88-2.06-2.05-2.80-2.64-2.57-2.32-2.81-3.21

ConAgra Foods Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
DSRI 1.17411.19071.06561.08660.83650.83560.82380.88360.91210.8857
GMI 0.95250.92751.06841.09551.09041.09411.02921.01551.02561.0051
AQI 1.28341.24461.24461.28641.02780.98071.04861.03520.98021.0009
SGI 1.09931.16811.21321.25481.25071.14521.05240.96060.9030.8924
DEPI 1.31131.15451.03630.95320.69730.75740.80370.85850.93890.9685
SGAI 1.39650.91520.91060.89220.781.13181.1451.28511.98371.4056
LVGI 1.46871.35541.31231.25580.93440.97830.93060.94431.01350.9868
TATA -0.0253-0.0313-0.0286-0.0377-0.0369-0.0644-0.0505-0.0518-0.1195-0.0988
M-score -2.45-2.32-2.31-2.25-2.50-2.80-2.82-2.89-3.38-3.21
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