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Campbell Soup Co (NYSE:CPB)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

CPB' s 10-Year Beneish M-Score Range
Min: -3.15   Max: -1.9
Current: -2.68

-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 -2.64.


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 * 0.9099+0.528 * 1.0423+0.404 * 0.988+0.892 * 1.077+0.115 * 1.0074
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9676+4.679 * -0.0447-0.327 * 0.9867
=-2.68

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
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.
Net Income was 325 + 172 + -158 + 181 = $520 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 325 + 38 + 155 + 365 = $883 Mil.
Accounts Receivable was $799 Mil.
Revenue was 2162 + 2205 + 1081 + 1821 = $7,269 Mil.
Gross Profit was 762 + 821 + 439 + 706 = $2,728 Mil.
Total Current Assets was $2,264 Mil.
Total Assets was $8,593 Mil.
Property, Plant and Equipment(Net PPE) was $2,361 Mil.
Depreciation, Depletion and Amortization(DDA) was $357 Mil.
Selling, General & Admin. Expense(SGA) was $1,495 Mil.
Total Current Liabilities was $2,891 Mil.
Long-Term Debt was $2,940 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)
=(783 / 7829) / (799 / 7269)
=0.10001277 / 0.10991883
=0.9099

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)
=(777 / 7269) / (814 / 7829)
=0.37529234 / 0.36007153
=1.0423

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 - (2174 + 2241) / 8119) / (1 - (2264 + 2361) / 8593)
=0.45621382 / 0.46177121
=0.988

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
=7829 / 7269
=1.077

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))
=(357 / (357 + 2361)) / (336 / (336 + 2241))
=0.13134658 / 0.13038417
=1.0074

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)
=(1558 / 7829) / (1495 / 7269)
=0.1990037 / 0.2056679
=0.9676

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)
=((2247 + 3189) / 8119) / ((2940 + 2891) / 8593)
=0.66954058 / 0.67857558
=0.9867

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
=(520 - 0 - 883) / 8119
=-0.0447

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 -2.68 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

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
DSRI 1.11451.04420.93471.16940.90590.97660.95831.17540.98311.0232
GMI 1.04671.00340.97821.03051.02490.99330.97271.0151.03241.0829
AQI 0.99840.97840.98220.92281.00150.95090.96881.00760.98921.1453
SGI 1.06450.99481.03831.00571.0830.94851.01190.93061.00451.1222
DEPI 0.96820.97720.95561.05850.92451.11761.08040.96461.03070.7186
SGAI 0.94780.99631.04340.91620.97460.99360.98530.96021.0190.9514
LVGI 0.90120.91760.96210.9870.9791.02610.99881.00720.96951.122
TATA -0.0171-0.0425-0.05870.02330.0636-0.071-0.0339-0.0491-0.053-0.0674
M-score -2.34-2.62-2.80-2.20-2.18-2.90-2.68-2.60-2.72-2.63

Campbell Soup Co Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 1.04931.026910.98311.11831.14541.1291.06310.84390.9099
GMI 1.02231.02251.0281.03241.03811.05621.06811.07981.07191.0423
AQI 1.02421.00660.98520.98921.12981.13991.12711.14531.02680.988
SGI 0.93290.93410.93381.00451.01221.02141.05851.08011.0681.077
DEPI 0.97290.99560.98731.03071.04330.86680.79750.71860.7641.0074
SGAI 0.95070.9550.9711.0191.00870.98970.97070.95440.98610.9676
LVGI 0.98790.94370.94640.96951.07551.08721.08861.1221.01710.9867
TATA -0.0652-0.057-0.0578-0.053-0.0428-0.0468-0.0477-0.0674-0.0653-0.0447
M-score -2.77-2.74-2.78-2.72-2.51-2.50-2.49-2.63-2.85-2.68
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