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Campbell Soup Co (NYSE:CPB)
Beneish M-Score
-2.81 (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 -2.81 suggests that the company is not a manipulator.

CPB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Max: -1.9
Current: -2.81

-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 -2.66.


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 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 * 1.0272+0.528 * 1.0088+0.404 * 0.992+0.892 * 0.9608+0.115 * 1.0328
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0394+4.679 * -0.0676-0.327 * 1.0071
=-2.81

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $829 Mil.
Revenue was 2203 + 1693 + 1900 + 2234 = $8,030 Mil.
Gross Profit was 755 + 612 + 682 + 728 = $2,777 Mil.
Total Current Assets was $2,337 Mil.
Total Assets was $8,304 Mil.
Property, Plant and Equipment(Net PPE) was $2,340 Mil.
Depreciation, Depletion and Amortization(DDA) was $302 Mil.
Selling, General & Admin. Expense(SGA) was $1,471 Mil.
Total Current Liabilities was $2,904 Mil.
Long-Term Debt was $2,551 Mil.
Net Income was 194 + 68 + 182 + 207 = $651 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 218 + 211 + 387 + 396 = $1,212 Mil.
Accounts Receivable was $840 Mil.
Revenue was 2255 + 1852 + 1970 + 2281 = $8,358 Mil.
Gross Profit was 795 + 631 + 676 + 814 = $2,916 Mil.
Total Current Assets was $2,358 Mil.
Total Assets was $8,297 Mil.
Property, Plant and Equipment(Net PPE) was $2,286 Mil.
Depreciation, Depletion and Amortization(DDA) was $306 Mil.
Selling, General & Admin. Expense(SGA) was $1,473 Mil.
Total Current Liabilities was $3,168 Mil.
Long-Term Debt was $2,244 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)
=(829 / 8030) / (840 / 8358)
=0.10323786 / 0.10050251
=1.0272

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)
=(612 / 8358) / (755 / 8030)
=0.34888729 / 0.34582814
=1.0088

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 - (2337 + 2340) / 8304) / (1 - (2358 + 2286) / 8297)
=0.43677746 / 0.44027962
=0.992

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
=8030 / 8358
=0.9608

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))
=(306 / (306 + 2286)) / (302 / (302 + 2340))
=0.11805556 / 0.11430734
=1.0328

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)
=(1471 / 8030) / (1473 / 8358)
=0.18318804 / 0.17623833
=1.0394

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)
=((2551 + 2904) / 8304) / ((2244 + 3168) / 8297)
=0.65691233 / 0.65228396
=1.0071

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
=(651 - 0 - 1212) / 8304
=-0.0676

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 -2.81 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

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
DSRI 0.93471.16940.90590.97660.95831.08930.9841.00050.98910.974
GMI 0.97821.03051.02490.99330.97271.0151.03241.08291.03181.0099
AQI 0.98220.92281.00150.95090.96881.00760.98921.14530.98660.9908
SGI 1.03831.00571.0830.94851.01190.93061.00451.12221.02680.9775
DEPI 0.95561.05850.92451.11761.08040.96461.03070.71861.31241.017
SGAI 1.04340.91620.97460.99360.98530.96021.0190.95140.90430.9979
LVGI 0.96210.9870.9791.02610.99881.00720.96951.1220.92151.0269
TATA -0.05870.02330.0636-0.071-0.0339-0.0491-0.053-0.0674-0.01-0.0607
M-score -2.80-2.20-2.18-2.90-2.68-2.68-2.72-2.65-2.42-2.81

Campbell Soup Co Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 1.00050.81210.87610.90370.98911.00150.99210.94630.9741.0272
GMI 1.08291.07461.0451.03681.03181.0261.05461.03181.00561.0088
AQI 1.14531.02680.9881.01650.98660.95260.98630.97470.99080.992
SGI 1.12221.10981.11861.09841.02681.04321.02211.01250.97750.9608
DEPI 0.71860.7641.00741.17811.31241.21691.09211.02581.0171.0328
SGAI 0.95140.98240.96510.94190.90430.85990.87590.91910.99251.0394
LVGI 1.1221.01710.98670.96880.92150.930.96440.98831.02691.0071
TATA -0.0674-0.0653-0.0447-0.0496-0.01-0.0187-0.0435-0.0429-0.059-0.0676
M-score -2.65-2.84-2.67-2.65-2.42-2.46-2.60-2.69-2.81-2.81
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