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Campbell Soup Co (NYSE:CPB)
Beneish M-Score
-2.65 (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 -2.65 suggests that the company is not a manipulator.

CPB' s 10-Year Beneish M-Score Range
Min: -3.15   Max: -1.9
Current: -2.65

-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 * 0.9037+0.528 * 1.0368+0.404 * 1.0165+0.892 * 1.0984+0.115 * 1.1781
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9419+4.679 * -0.0496-0.327 * 0.9688
=-2.65

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $669 Mil.
Revenue was 1970 + 2281 + 2165 + 1723 = $8,139 Mil.
Gross Profit was 676 + 814 + 777 + 623 = $2,890 Mil.
Total Current Assets was $1,947 Mil.
Total Assets was $7,964 Mil.
Property, Plant and Equipment(Net PPE) was $2,263 Mil.
Depreciation, Depletion and Amortization(DDA) was $311 Mil.
Selling, General & Admin. Expense(SGA) was $1,556 Mil.
Total Current Liabilities was $2,817 Mil.
Long-Term Debt was $2,247 Mil.
Net Income was 184 + 325 + 172 + -158 = $523 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 400 + 325 + 38 + 155 = $918 Mil.
Accounts Receivable was $674 Mil.
Revenue was 1962 + 2162 + 2205 + 1081 = $7,410 Mil.
Gross Profit was 706 + 762 + 821 + 439 = $2,728 Mil.
Total Current Assets was $2,177 Mil.
Total Assets was $8,453 Mil.
Property, Plant and Equipment(Net PPE) was $2,356 Mil.
Depreciation, Depletion and Amortization(DDA) was $391 Mil.
Selling, General & Admin. Expense(SGA) was $1,504 Mil.
Total Current Liabilities was $2,604 Mil.
Long-Term Debt was $2,944 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)
=(669 / 8139) / (674 / 7410)
=0.08219683 / 0.09095816
=0.9037

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)
=(814 / 7410) / (676 / 8139)
=0.36815115 / 0.35508048
=1.0368

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 - (1947 + 2263) / 7964) / (1 - (2177 + 2356) / 8453)
=0.47137117 / 0.46374068
=1.0165

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
=8139 / 7410
=1.0984

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))
=(391 / (391 + 2356)) / (311 / (311 + 2263))
=0.1423371 / 0.12082362
=1.1781

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)
=(1556 / 8139) / (1504 / 7410)
=0.19117828 / 0.20296896
=0.9419

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 + 2817) / 7964) / ((2944 + 2604) / 8453)
=0.63586138 / 0.65633503
=0.9688

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
=(523 - 0 - 918) / 7964
=-0.0496

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 -2.65 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 1.04420.93471.16940.90590.97660.95831.17540.98311.0232
GMI 1.00340.97821.03051.02490.99330.97271.0151.03241.0829
AQI 0.97840.98220.92281.00150.95090.96881.00760.98921.1453
SGI 0.99481.03831.00571.0830.94851.01190.93061.00451.1222
DEPI 0.97720.95561.05850.92451.11761.08040.96461.03070.7186
SGAI 0.99631.04340.91620.97460.99360.98530.96021.0190.9514
LVGI 0.91760.96210.9870.9791.02610.99881.00720.96951.122
TATA -0.0425-0.05870.02330.0636-0.071-0.0339-0.0491-0.053-0.0674
M-score -2.62-2.80-2.20-2.18-2.90-2.68-2.60-2.72-2.63

Campbell Soup Co Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 10.98311.11831.14541.14911.02320.81210.87610.90370
GMI 1.0281.03241.03811.05621.06551.08291.07461.0451.03681.0318
AQI 0.98520.98921.12981.13991.12711.14531.02680.9881.01650.9866
SGI 0.93381.00451.01221.02141.041.12221.10981.11861.09841.0268
DEPI 0.98731.03071.04330.86680.79750.71860.7641.00741.17811.746
SGAI 0.9711.0191.00870.98970.97190.95140.98240.96510.94190.9043
LVGI 0.94640.96951.07551.08721.08861.1221.01710.98670.96880.9215
TATA -0.0578-0.053-0.0428-0.0468-0.0477-0.0674-0.0653-0.0447-0.04960.0068
M-score -2.78-2.72-2.51-2.50-2.49-2.63-2.84-2.67-2.65-3.20
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