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Delhaize Group SA (NYSE:DEG)
Beneish M-Score
-2.72 (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.

Delhaize Group SA has a M-score of -3.01 suggests that the company is not a manipulator.

DEG' s 10-Year Beneish M-Score Range
Min: -3.96   Max: -2.46
Current: -2.72

-3.96
-2.46

During the past 13 years, the highest Beneish M-Score of Delhaize Group SA was -2.46. The lowest was -3.96. And the median was -2.79.


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 Delhaize Group SA 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 * 0.8557+0.528 * 1.0032+0.404 * 1.0715+0.892 * 0.9842+0.115 * 0.9053
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.005+4.679 * -0.0923-0.327 * 0.9217
=-3.01

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $656 Mil.
Revenue was 6298.7012987 + 6789.14919852 + 7038.65979381 + 7164.40217391 = $27,291 Mil.
Gross Profit was 1536.7965368 + 1644.88286067 + 1689.43298969 + 1718.75 = $6,590 Mil.
Total Current Assets was $3,991 Mil.
Total Assets was $13,550 Mil.
Property, Plant and Equipment(Net PPE) was $4,577 Mil.
Depreciation, Depletion and Amortization(DDA) was $760 Mil.
Selling, General & Admin. Expense(SGA) was $5,788 Mil.
Total Current Liabilities was $3,274 Mil.
Long-Term Debt was $2,690 Mil.
Net Income was 30.303030303 + -67.8175092478 + 140.463917526 + -61.1413043478 = $42 Mil.
Non Operating Income was -1.08225108225 + -2.46609124538 + 10.3092783505 + 6.79347826087 = $14 Mil.
Cash Flow from Operations was -27.0562770563 + 664.611590629 + 364.690721649 + 277.173913043 = $1,279 Mil.
Accounts Receivable was $779 Mil.
Revenue was 6950.20746888 + 6780.521262 + 7074.76635514 + 6922.16358839 = $27,728 Mil.
Gross Profit was 1676.34854772 + 1659.8079561 + 1699.59946595 + 1680.73878628 = $6,716 Mil.
Total Current Assets was $5,037 Mil.
Total Assets was $15,842 Mil.
Property, Plant and Equipment(Net PPE) was $5,369 Mil.
Depreciation, Depletion and Amortization(DDA) was $795 Mil.
Selling, General & Admin. Expense(SGA) was $5,851 Mil.
Total Current Liabilities was $4,100 Mil.
Long-Term Debt was $3,466 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)
=(655.844155844 / 27290.9124649) / (778.699861687 / 27727.6586744)
=0.0240316 / 0.02808387
=0.8557

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)
=(1644.88286067 / 27727.6586744) / (1536.7965368 / 27290.9124649)
=0.24223087 / 0.24146728
=1.0032

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 - (3991.34199134 + 4576.83982684) / 13549.7835498) / (1 - (5037.34439834 + 5369.29460581) / 15842.3236515)
=0.36765176 / 0.34311158
=1.0715

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
=27290.9124649 / 27727.6586744
=0.9842

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))
=(794.846265249 / (794.846265249 + 5369.29460581)) / (760.18830179 / (760.18830179 + 4576.83982684))
=0.1289468 / 0.14243663
=0.9053

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)
=(5787.69473908 / 27290.9124649) / (5851.31839588 / 27727.6586744)
=0.21207406 / 0.21102822
=1.005

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)
=((2690.47619048 + 3273.80952381) / 13549.7835498) / ((3466.11341632 + 4099.58506224) / 15842.3236515)
=0.44017572 / 0.47756242
=0.9217

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
=(41.8081342331 - 13.5544142838 - 1279.41994827) / 13549.7835498
=-0.0923

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.

Delhaize Group SA has a M-score of -3.01 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.

Delhaize Group SA Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.90271.04651.11981.05030.93710.96571.11190.89320.98780.9754
GMI 0.97751.00140.99820.99760.98571.00121.01591.03111.00671.0121
AQI 1.00790.99440.98350.9721.01780.96861.07150.98110.92191.0044
SGI 0.92261.16731.08630.93231.13050.94890.93121.04821.04930.9324
DEPI 1.11910.90651.04481.11640.92260.96861.08390.87360.99681.0181
SGAI 1.02561.00621.00521.00711.01390.99380.99770.99511.00890.9986
LVGI 2.66830.96180.94940.96080.95380.92851.04061.00931.01740.9907
TATA -0.0557-0.0622-0.0609-0.0486-0.0685-0.0693-0.0529-0.1075-0.0872-0.0884
M-score -3.44-2.58-2.56-2.71-2.74-2.87-2.65-3.05-2.89-2.96

Delhaize Group SA Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.93570.98190.72140.73961.02530.77260.95440.88010.89150.8557
GMI 1.02841.02261.01131.00371.00941.01231.0171.01371.0111.0032
AQI 0.98110.98650.9640.91040.92190.92860.93650.99461.00441.0715
SGI 1.00050.97511.01461.03661.0111.04581.04261.03521.02020.9842
DEPI 0.92330.9540.92730.94161.01181.00041.03111.02240.93710.9053
SGAI 1.03050.95320.95220.96170.97411.01311.01341.00670.99781.005
LVGI 1.00931.00880.9961.04571.01741.00480.99870.97020.99070.9217
TATA -0.1067-0.1092-0.1016-0.1194-0.0849-0.0665-0.089-0.0738-0.0917-0.0923
M-score -3.05-3.02-3.21-3.29-2.87-2.99-2.92-2.89-2.99-3.01
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