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Delhaize Group SA (NYSE:DEG)
Beneish M-Score
-3.21 (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 -2.77 suggests that the company is not a manipulator.

DEG' s 10-Year Beneish M-Score Range
Min: -4.1   Max: -2.46
Current: -3.21

-4.1
-2.46

During the past 13 years, the highest Beneish M-Score of Delhaize Group SA was -2.46. The lowest was -4.10. And the median was -2.75.


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 * 1.2032+0.528 * 1.0156+0.404 * 0.9286+0.892 * 0.9399+0.115 * 0.9899
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9591+4.679 * -0.0867-0.327 * 1.0158
=-2.77

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $985 Mil.
Revenue was 7272.47956403 + 7283.76534789 + 6452.87958115 + 7198.17470665 = $28,207 Mil.
Gross Profit was 1737.05722071 + 1746.24829468 + 1554.97382199 + 1779.66101695 = $6,818 Mil.
Total Current Assets was $4,995 Mil.
Total Assets was $15,798 Mil.
Property, Plant and Equipment(Net PPE) was $5,413 Mil.
Depreciation, Depletion and Amortization(DDA) was $799 Mil.
Selling, General & Admin. Expense(SGA) was $5,982 Mil.
Total Current Liabilities was $4,281 Mil.
Long-Term Debt was $3,416 Mil.
Net Income was 137.602179837 + -118.690313779 + 136.12565445 + 79.5306388527 = $235 Mil.
Non Operating Income was 5.44959128065 + 4.09276944065 + 6.5445026178 + 1.3037809648 = $17 Mil.
Cash Flow from Operations was 606.267029973 + 353.342428377 + 202.879581152 + 425.032594524 = $1,588 Mil.
Accounts Receivable was $871 Mil.
Revenue was 9416.22340426 + 6963.68352789 + 6470.51597052 + 7160.52631579 = $30,011 Mil.
Gross Profit was 2333.77659574 + 1695.20103761 + 1560.1965602 + 1777.63157895 = $7,367 Mil.
Total Current Assets was $4,281 Mil.
Total Assets was $15,872 Mil.
Property, Plant and Equipment(Net PPE) was $5,759 Mil.
Depreciation, Depletion and Amortization(DDA) was $840 Mil.
Selling, General & Admin. Expense(SGA) was $6,636 Mil.
Total Current Liabilities was $3,722 Mil.
Long-Term Debt was $3,890 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)
=(985.013623978 / 28207.2991997) / (871.010638298 / 30010.9492184)
=0.03492052 / 0.0290231
=1.2032

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)
=(1746.24829468 / 30010.9492184) / (1737.05722071 / 28207.2991997)
=0.2454706 / 0.24170837
=1.0156

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 - (4994.55040872 + 5412.80653951) / 15798.3651226) / (1 - (4280.58510638 + 5759.30851064) / 15872.3404255)
=0.34123836 / 0.36745979
=0.9286

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
=28207.2991997 / 30010.9492184
=0.9399

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))
=(840.407902062 / (840.407902062 + 5759.30851064)) / (799.076959684 / (799.076959684 + 5412.80653951))
=0.12734 / 0.12863682
=0.9899

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)
=(5981.72137319 / 28207.2991997) / (6635.88807178 / 30010.9492184)
=0.21206289 / 0.22111557
=0.9591

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)
=((3415.53133515 + 4280.65395095) / 15798.3651226) / ((3889.62765957 + 3722.07446809) / 15872.3404255)
=0.48715074 / 0.47955764
=1.0158

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
=(234.56815936 - 17.3906443039 - 1587.52163403) / 15798.3651226
=-0.0867

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 -2.77 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.2250.92461.02181.11981.05030.93711.00841.09450.86021.189
GMI 1.09480.97751.00140.99820.99760.98571.00121.0111.03721.0126
AQI 0.91141.00790.99440.98350.9721.01780.96861.06460.98020.9286
SGI 0.95280.96411.12171.1180.90321.12880.980.97721.110.9511
DEPI 1.28321.11910.90651.04481.11640.92260.96861.08380.87430.996
SGAI 1.02291.02561.00621.00521.00711.01390.99381.01081.00570.9898
LVGI 0.38262.66830.96180.94940.96080.95380.92851.04191.0091.0158
TATA -0.0837-0.0557-0.0622-0.0609-0.0486-0.0685-0.0693-0.0532-0.1106-0.0879
M-score -2.46-3.39-2.64-2.54-2.74-2.74-2.81-2.64-3.03-2.79

Delhaize Group SA Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.09691.02251.06071.09131.01040.9280.94260.84660.85511.2032
GMI 1.0071.01121.01791.02241.02921.03441.02781.01921.01271.0156
AQI 1.07031.06461.07131.09761.01690.98020.9860.96380.91010.9286
SGI 1.0391.0461.01890.97380.96361.02891.03471.06431.08940.9399
DEPI 1.07861.02061.00231.00140.91370.95160.95450.9250.93940.9899
SGAI 0.99011.01151.04191.04471.04081.03740.98570.96470.97560.9591
LVGI 1.01521.04191.04921.05390.94871.0091.00610.99321.04461.0158
TATA -0.0471-0.0568-0.0542-0.0611-0.0675-0.1089-0.1115-0.106-0.1214-0.0867
M-score -2.54-2.67-2.65-2.68-2.80-3.03-3.02-3.06-3.15-2.77
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