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ConAgra Foods Inc (NYSE:CAG)
Beneish M-Score
-3.27 (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 -3.27 suggests that the company is not a manipulator.

CAG' s 10-Year Beneish M-Score Range
Min: -3.27   Max: -1.27
Current: -3.27

-3.27
-1.27

During the past 13 years, the highest Beneish M-Score of ConAgra Foods Inc was -1.27. The lowest was -3.27. And the median was -2.66.


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 * 0.7721+0.528 * 1.1199+0.404 * 0.9802+0.892 * 1.0668+0.115 * 0.8854
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7381+4.679 * -0.1181-0.327 * 1.0135
=-3.27

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

This Year (Feb15) TTM:Last Year (Feb14) TTM:
Accounts Receivable was $1,051 Mil.
Revenue was 3876.7 + 4150 + 3701 + 5818.4 = $17,546 Mil.
Gross Profit was 823.8 + 888.5 + 703.8 + 1047.5 = $3,464 Mil.
Total Current Assets was $3,923 Mil.
Total Assets was $17,869 Mil.
Property, Plant and Equipment(Net PPE) was $3,580 Mil.
Depreciation, Depletion and Amortization(DDA) was $618 Mil.
Selling, General & Admin. Expense(SGA) was $4,092 Mil.
Total Current Liabilities was $3,717 Mil.
Long-Term Debt was $6,919 Mil.
Net Income was -954.1 + 10 + 482.3 + -324.2 = $-786 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 322.8 + 184.1 + 233.6 + 583.2 = $1,324 Mil.
Accounts Receivable was $1,276 Mil.
Revenue was 3947.3 + 4221.1 + 3715.8 + 4563.3 = $16,448 Mil.
Gross Profit was 923.1 + 959.8 + 792.1 + 961.1 = $3,636 Mil.
Total Current Assets was $4,521 Mil.
Total Assets was $20,433 Mil.
Property, Plant and Equipment(Net PPE) was $3,820 Mil.
Depreciation, Depletion and Amortization(DDA) was $573 Mil.
Selling, General & Admin. Expense(SGA) was $2,207 Mil.
Total Current Liabilities was $3,241 Mil.
Long-Term Debt was $8,761 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)
=(1050.7 / 17546.1) / (1275.6 / 16447.5)
=0.05988225 / 0.07755586
=0.7721

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)
=(888.5 / 16447.5) / (823.8 / 17546.1)
=0.22107311 / 0.19739999
=1.1199

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 - (3923.3 + 3579.9) / 17868.9) / (1 - (4520.6 + 3819.7) / 20433.3)
=0.58009726 / 0.59182805
=0.9802

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
=17546.1 / 16447.5
=1.0668

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))
=(572.8 / (572.8 + 3819.7)) / (618.3 / (618.3 + 3579.9))
=0.1304041 / 0.1472774
=0.8854

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)
=(4091.7 / 17546.1) / (2206.7 / 16447.5)
=0.23319712 / 0.13416629
=1.7381

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)
=((6919.3 + 3716.9) / 17868.9) / ((8760.7 + 3240.5) / 20433.3)
=0.5952353 / 0.58733538
=1.0135

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
=(-786 - 0 - 1323.7) / 17868.9
=-0.1181

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 -3.27 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

May05May06May07May08May09May10May11May12May13May14
DSRI 0.91391.03760.67670.99040.78921.16330.96981.00881.19880.8383
GMI 1.02581.00410.96951.08941.04840.87871.08721.11370.91121.0981
AQI 1.03230.90660.95190.95771.24990.9430.9621.12941.2550.9726
SGI 1.04190.90051.02731.0981.07460.96691.03091.07931.1541.1475
DEPI 0.80260.92540.88621.23780.99320.96890.93010.99721.13130.7729
SGAI 0.971.19090.93730.90570.8881.11760.79921.22610.93341.1286
LVGI 0.91980.95411.00810.99810.8830.98710.97671.01461.35540.9783
TATA -0.0485-0.0672-0.01750.05760.075-0.0636-0.0469-0.051-0.0313-0.0644
M-score -2.71-2.91-2.88-2.06-2.07-2.76-2.63-2.57-2.34-2.80

ConAgra Foods Inc Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
DSRI 0.99921.19391.19881.10711.15710.90950.83830.77650.7870.7721
GMI 0.95080.93370.91121.03361.04991.03681.09811.0711.08491.1199
AQI 1.06711.28341.2551.24461.28641.02780.97261.04861.03520.9802
SGI 1.06851.08111.1541.16771.17851.15031.14751.11661.07851.0668
DEPI 1.07011.32081.13131.05220.97690.71720.77290.78320.81990.8854
SGAI 1.29391.48210.93340.93940.93050.82071.12861.09561.17771.7381
LVGI 1.05931.46871.35541.31231.25580.93440.97830.93060.94431.0135
TATA -0.0307-0.0265-0.0313-0.0286-0.039-0.0381-0.0644-0.0505-0.0504-0.1181
M-score -2.62-2.47-2.34-2.33-2.29-2.56-2.80-2.78-2.82-3.27
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