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Campbell Soup Co (NYSE:CPB)
Beneish M-Score
-3.81 (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 -2.96 suggests that the company is not a manipulator.

CPB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.81   Max: -1.94
Current: -3.81

-3.81
-1.94

During the past 13 years, the highest Beneish M-Score of Campbell Soup Co was -1.94. The lowest was -3.81. 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 * 0.9822+0.528 * 0.9857+0.404 * 0.998+0.892 * 0.985+0.115 * 1.0079
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0487+4.679 * -0.0967-0.327 * 0.9388
=-2.96

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $626 Mil.
Revenue was 1687 + 1870 + 2201 + 2203 = $7,961 Mil.
Gross Profit was 546 + 660 + 819 + 755 = $2,780 Mil.
Total Current Assets was $1,908 Mil.
Total Assets was $7,837 Mil.
Property, Plant and Equipment(Net PPE) was $2,407 Mil.
Depreciation, Depletion and Amortization(DDA) was $308 Mil.
Selling, General & Admin. Expense(SGA) was $1,534 Mil.
Total Current Liabilities was $2,555 Mil.
Long-Term Debt was $2,314 Mil.
Net Income was -81 + 185 + 265 + 194 = $563 Mil.
Non Operating Income was -142 + 0 + 0 + 0 = $-142 Mil.
Cash Flow from Operations was 280 + 456 + 509 + 218 = $1,463 Mil.
Accounts Receivable was $647 Mil.
Revenue was 1693 + 1900 + 2234 + 2255 = $8,082 Mil.
Gross Profit was 562 + 682 + 743 + 795 = $2,782 Mil.
Total Current Assets was $2,093 Mil.
Total Assets was $8,077 Mil.
Property, Plant and Equipment(Net PPE) was $2,347 Mil.
Depreciation, Depletion and Amortization(DDA) was $303 Mil.
Selling, General & Admin. Expense(SGA) was $1,485 Mil.
Total Current Liabilities was $2,806 Mil.
Long-Term Debt was $2,539 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)
=(626 / 7961) / (647 / 8082)
=0.07863334 / 0.08005444
=0.9822

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)
=(2782 / 8082) / (2780 / 7961)
=0.34422173 / 0.34920236
=0.9857

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 - (1908 + 2407) / 7837) / (1 - (2093 + 2347) / 8077)
=0.44940666 / 0.45029095
=0.998

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
=7961 / 8082
=0.985

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))
=(303 / (303 + 2347)) / (308 / (308 + 2407))
=0.11433962 / 0.11344383
=1.0079

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)
=(1534 / 7961) / (1485 / 8082)
=0.19268936 / 0.18374165
=1.0487

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)
=((2314 + 2555) / 7837) / ((2539 + 2806) / 8077)
=0.62128365 / 0.6617556
=0.9388

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
=(563 - -142 - 1463) / 7837
=-0.0967

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 -2.96 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 local exchange's currency.

Campbell Soup Co Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
DSRI 1.09780.9650.97660.95831.08930.91611.07470.98911.13140.9822
GMI 0.99951.05670.99330.97271.0151.04151.07351.00641.04390.9857
AQI 0.92281.00150.95090.96881.00760.98921.14530.98660.98870.998
SGI 1.07141.01670.94851.01190.93061.0791.04481.02680.97750.985
DEPI 1.05850.92451.11761.08040.96461.03070.71861.31241.0171.0079
SGAI 0.98780.9040.99360.98530.96021.01730.9530.90251.00941.0487
LVGI 0.9870.9791.02610.99881.00720.96951.1220.92151.0260.9388
TATA 0.02650.0636-0.071-0.0339-0.0491-0.053-0.06740.0032-0.0504-0.0967
M-score -2.22-2.15-2.90-2.68-2.68-2.71-2.65-2.37-2.60-2.96

Campbell Soup Co Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
DSRI 0.98910.98510.95520.89581.13141.02721.00791.04570.98220
GMI 1.00641.0021.02551.00481.04391.04730.99641.0110.98570.9484
AQI 0.98660.95260.98630.97470.98870.9920.99220.98790.9981.0005
SGI 1.02681.06051.06161.06960.97750.96080.96220.96680.9850.9913
DEPI 1.31241.21691.09211.02581.0171.03281.03241.02451.00790.9891
SGAI 0.90250.85720.8670.91151.00941.05711.07841.08981.04871.0156
LVGI 0.92150.930.96440.98831.0261.00710.98090.97060.93880.9578
TATA 0.0032-0.0058-0.0281-0.0276-0.0504-0.0591-0.0694-0.0772-0.0967-0.0816
M-score -2.37-2.41-2.54-2.63-2.60-2.75-2.84-2.83-2.96-3.81
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