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Campbell Soup Co (NYSE:CPB)
Beneish M-Score
-2.61 (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.

Campbell Soup Co has a M-score of -2.61 suggests that the company is not a manipulator.

CPB' s 10-Year Beneish M-Score Range
Min: -3.15   Max: -1.9
Current: -2.61

-3.15
-1.9

During the past 13 years, the highest Beneish M-Score of Campbell Soup Co was -1.90. The lowest was -3.15. And the median was -2.65.


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 Campbell Soup Co 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 * 0.9552+0.528 * 1.0619+0.404 * 0.9863+0.892 * 1.0616+0.115 * 1.0921
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8785+4.679 * -0.0453-0.327 * 0.9644
=-2.61

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $794 Mil.
Revenue was 2234 + 2255 + 1852 + 1970 = $8,311 Mil.
Gross Profit was 728 + 783 + 631 + 676 = $2,818 Mil.
Total Current Assets was $2,090 Mil.
Total Assets was $7,903 Mil.
Property, Plant and Equipment(Net PPE) was $2,257 Mil.
Depreciation, Depletion and Amortization(DDA) was $306 Mil.
Selling, General & Admin. Expense(SGA) was $1,453 Mil.
Total Current Liabilities was $2,850 Mil.
Long-Term Debt was $2,253 Mil.
Net Income was 207 + 234 + 137 + 184 = $762 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 396 + 188 + 136 + 400 = $1,120 Mil.
Accounts Receivable was $783 Mil.
Revenue was 2281 + 2165 + 1289 + 2094 = $7,829 Mil.
Gross Profit was 814 + 777 + 480 + 748 = $2,819 Mil.
Total Current Assets was $2,174 Mil.
Total Assets was $8,119 Mil.
Property, Plant and Equipment(Net PPE) was $2,241 Mil.
Depreciation, Depletion and Amortization(DDA) was $336 Mil.
Selling, General & Admin. Expense(SGA) was $1,558 Mil.
Total Current Liabilities was $3,189 Mil.
Long-Term Debt was $2,247 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)
=(794 / 8311) / (783 / 7829)
=0.09553604 / 0.10001277
=0.9552

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)
=(783 / 7829) / (728 / 8311)
=0.36007153 / 0.3390687
=1.0619

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 - (2090 + 2257) / 7903) / (1 - (2174 + 2241) / 8119)
=0.44995571 / 0.45621382
=0.9863

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
=8311 / 7829
=1.0616

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))
=(336 / (336 + 2241)) / (306 / (306 + 2257))
=0.13038417 / 0.11939134
=1.0921

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)
=(1453 / 8311) / (1558 / 7829)
=0.17482854 / 0.1990037
=0.8785

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)
=((2253 + 2850) / 7903) / ((2247 + 3189) / 8119)
=0.64570416 / 0.66954058
=0.9644

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
=(762 - 0 - 1120) / 7903
=-0.0453

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.

Campbell Soup Co has a M-score of -2.61 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.

Campbell Soup Co Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
DSRI 1.04420.93471.16940.90590.97660.95831.0080.991.07470.9891
GMI 1.00340.97821.03051.02490.99330.97271.02081.03551.07351.0318
AQI 0.97840.98220.92281.00150.95090.96881.00760.98921.14530.9866
SGI 0.99481.03831.00571.0830.94851.01191.00560.99841.04481.0268
DEPI 0.97720.95561.05850.92451.11761.08040.96461.03070.71861.3124
SGAI 0.99631.04340.91620.97460.99360.98530.96811.0090.9530.9043
LVGI 0.91760.96210.9870.9791.02610.99881.00720.96951.1220.9215
TATA -0.0425-0.05870.02330.0636-0.071-0.0333-0.0491-0.053-0.0674-0.01
M-score -2.62-2.80-2.20-2.18-2.90-2.68-2.68-2.71-2.65-2.42

Campbell Soup Co Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 1.1071.11061.09871.07470.90151.01431.0790.98910.98510.9552
GMI 1.0431.0621.07231.07351.06331.0321.02241.03181.03131.0619
AQI 1.12981.13991.12711.14531.02680.9881.01650.98660.95260.9863
SGI 1.02261.05331.08771.04480.99990.96620.91991.02681.06051.0616
DEPI 1.04330.86680.79750.71860.7641.00741.17811.31241.21691.0921
SGAI 0.9980.97830.96140.9530.98550.97080.9460.90430.86360.8785
LVGI 1.07551.08721.08861.1221.01710.98670.96880.92150.930.9644
TATA -0.0428-0.0468-0.0477-0.0674-0.0653-0.0447-0.0496-0.01-0.0204-0.0453
M-score -2.51-2.50-2.49-2.65-2.86-2.68-2.65-2.42-2.47-2.61
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