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Campbell Soup Co (NYSE:CPB)
Beneish M-Score
-2.89 (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 -2.89 suggests that the company is not a manipulator.

CPB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Max: -1.93
Current: -2.89

-3.11
-1.93

During the past 13 years, the highest Beneish M-Score of Campbell Soup Co was -1.93. The lowest was -3.11. 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 * 1.0079+0.528 * 0.9545+0.404 * 0.9922+0.892 * 0.9622+0.115 * 1.0324
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0545+4.679 * -0.0762-0.327 * 0.9809
=-2.89

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $770 Mil.
Revenue was 2201 + 2203 + 1693 + 1900 = $7,997 Mil.
Gross Profit was 819 + 755 + 612 + 682 = $2,868 Mil.
Total Current Assets was $2,132 Mil.
Total Assets was $8,079 Mil.
Property, Plant and Equipment(Net PPE) was $2,340 Mil.
Depreciation, Depletion and Amortization(DDA) was $306 Mil.
Selling, General & Admin. Expense(SGA) was $1,458 Mil.
Total Current Liabilities was $2,566 Mil.
Long-Term Debt was $2,551 Mil.
Net Income was 265 + 194 + 68 + 182 = $709 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 509 + 218 + 211 + 387 = $1,325 Mil.
Accounts Receivable was $794 Mil.
Revenue was 2234 + 2255 + 1852 + 1970 = $8,311 Mil.
Gross Profit was 743 + 795 + 631 + 676 = $2,845 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 $1,437 Mil.
Total Current Liabilities was $2,850 Mil.
Long-Term Debt was $2,253 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)
=(770 / 7997) / (794 / 8311)
=0.09628611 / 0.09553604
=1.0079

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)
=(755 / 8311) / (819 / 7997)
=0.34231741 / 0.35863449
=0.9545

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 - (2132 + 2340) / 8079) / (1 - (2090 + 2257) / 7903)
=0.44646615 / 0.44995571
=0.9922

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
=7997 / 8311
=0.9622

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 + 2257)) / (306 / (306 + 2340))
=0.11939134 / 0.11564626
=1.0324

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)
=(1458 / 7997) / (1437 / 8311)
=0.18231837 / 0.17290338
=1.0545

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 + 2566) / 8079) / ((2253 + 2850) / 7903)
=0.63337047 / 0.64570416
=0.9809

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
=(709 - 0 - 1325) / 8079
=-0.0762

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 -2.89 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

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 0.81210.87610.90370.98911.00150.99210.94630.9741.02721.0079
GMI 1.07461.0451.03681.03181.0261.04911.02641.00031.00340.9545
AQI 1.02680.9881.01650.98660.95260.98630.97470.99080.9920.9922
SGI 1.10981.11861.09841.02681.04321.02211.01250.97750.96080.9622
DEPI 0.7641.00741.17811.31241.21691.09211.02581.0171.03281.0324
SGAI 0.98240.96510.94190.90430.85990.87110.9140.98711.03381.0545
LVGI 1.01710.98670.96880.92150.930.96440.98831.02691.00710.9809
TATA -0.0653-0.0447-0.0496-0.01-0.0187-0.0416-0.041-0.0571-0.0658-0.0762
M-score -2.84-2.67-2.65-2.42-2.46-2.60-2.68-2.80-2.80-2.89
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