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Campbell Soup Co (NYSE:CPB)
Beneish M-Score
-3.37 (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 -3.37 suggests that the company is not a manipulator.

CPB' s 10-Year Beneish M-Score Range
Min: -3.37   Max: -1.87
Current: -3.37

-3.37
-1.87

During the past 13 years, the highest Beneish M-Score of Campbell Soup Co was -1.87. The lowest was -3.37. 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+0.528 * 1.0313+0.404 * 0.9526+0.892 * 1.0605+0.115 * 1.2169
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8636+4.679 * -0.0204-0.327 * 0.93
=-3.37

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $0 Mil.
Revenue was 2255 + 1852 + 1970 + 2281 = $8,358 Mil.
Gross Profit was 783 + 631 + 676 + 814 = $2,904 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 $1,481 Mil.
Total Current Liabilities was $3,168 Mil.
Long-Term Debt was $2,244 Mil.
Net Income was 234 + 137 + 184 + 325 = $880 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 188 + 136 + 400 + 325 = $1,049 Mil.
Accounts Receivable was $804 Mil.
Revenue was 2165 + 1289 + 2094 + 2333 = $7,881 Mil.
Gross Profit was 777 + 480 + 748 + 819 = $2,824 Mil.
Total Current Assets was $2,587 Mil.
Total Assets was $9,055 Mil.
Property, Plant and Equipment(Net PPE) was $2,283 Mil.
Depreciation, Depletion and Amortization(DDA) was $383 Mil.
Selling, General & Admin. Expense(SGA) was $1,617 Mil.
Total Current Liabilities was $4,104 Mil.
Long-Term Debt was $2,247 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)
=(0 / 8358) / (804 / 7881)
=0 / 0.10201751
=0

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)
=(631 / 7881) / (783 / 8358)
=0.35833016 / 0.34745154
=1.0313

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 - (2358 + 2286) / 8297) / (1 - (2587 + 2283) / 9055)
=0.44027962 / 0.46217559
=0.9526

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
=8358 / 7881
=1.0605

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))
=(383 / (383 + 2283)) / (306 / (306 + 2286))
=0.14366092 / 0.11805556
=1.2169

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)
=(1481 / 8358) / (1617 / 7881)
=0.1771955 / 0.20517701
=0.8636

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)
=((2244 + 3168) / 8297) / ((2247 + 4104) / 9055)
=0.65228396 / 0.70138045
=0.93

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
=(880 - 0 - 1049) / 8297
=-0.0204

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 -3.37 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 0.97840.99761.09780.9650.97660.95831.0080.991.07470.9891
GMI 1.01490.96710.99951.05670.99330.97271.02081.03551.07351.0318
AQI 0.98030.99950.90681.00150.95090.96881.00760.98921.14530.9866
SGI 1.06180.97281.07141.01670.94851.01191.00560.99841.04481.0268
DEPI 0.97720.95561.05850.92451.11761.08040.96461.03070.71861.3124
SGAI 0.97571.06540.98780.9040.99360.98530.96811.0090.9530.9043
LVGI 0.91690.96220.98690.9791.02610.99881.00720.96951.1220.9215
TATA -0.0427-0.05780.02650.0636-0.071-0.0333-0.0491-0.053-0.0674-0.01
M-score -2.62-2.80-2.23-2.15-2.90-2.68-2.68-2.71-2.65-2.42

Campbell Soup Co Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 0.991.1071.11061.09871.07470.90151.01431.0790.98910
GMI 1.03551.0431.0621.07231.07351.06331.0321.02241.03181.0313
AQI 0.98921.12981.13991.12711.14531.02680.9881.01650.98660.9526
SGI 0.99841.02261.05331.08771.04480.99990.96620.91991.02681.0605
DEPI 1.03071.04330.86680.79750.71860.7641.00741.17811.31241.2169
SGAI 1.0090.9980.97830.96140.9530.98550.97080.9460.90430.8636
LVGI 0.96951.07551.08721.08861.1221.01710.98670.96880.92150.93
TATA -0.053-0.0428-0.0468-0.0477-0.0674-0.0653-0.0447-0.0496-0.01-0.0204
M-score -2.71-2.51-2.50-2.49-2.65-2.86-2.68-2.65-2.42-3.37
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