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Delhaize Group SA (NYSE:DEG)
Beneish M-Score
-2.90 (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 -2.84 suggests that the company is not a manipulator.

DEG' s 10-Year Beneish M-Score Range
Min: -4.1   Max: -2.46
Current: -2.9

-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 -2.78.


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 * 0.9194+0.528 * 1.0117+0.404 * 0.9286+0.892 * 1.0531+0.115 * 0.9938
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9822+4.679 * -0.0662-0.327 * 1.0046
=-2.84

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $939 Mil.
Revenue was 7071.82320442 + 7272.47956403 + 7283.76534789 + 6998.69109948 = $28,627 Mil.
Gross Profit was 1697.51381215 + 1737.05722071 + 1746.24829468 + 1696.33507853 = $6,877 Mil.
Total Current Assets was $5,030 Mil.
Total Assets was $15,820 Mil.
Property, Plant and Equipment(Net PPE) was $5,362 Mil.
Depreciation, Depletion and Amortization(DDA) was $796 Mil.
Selling, General & Admin. Expense(SGA) was $6,076 Mil.
Total Current Liabilities was $4,093 Mil.
Long-Term Debt was $3,461 Mil.
Net Income was 110.497237569 + 137.602179837 + -118.690313779 + 149.214659686 = $279 Mil.
Non Operating Income was 4.14364640884 + -17.7111716621 + 4.09276944065 + 6.5445026178 = $-3 Mil.
Cash Flow from Operations was 167.127071823 + 606.267029973 + 353.342428377 + 202.879581152 = $1,330 Mil.
Accounts Receivable was $970 Mil.
Revenue was 6654.49804433 + 7094.41489362 + 6963.68352789 + 6470.51597052 = $27,183 Mil.
Gross Profit was 1638.85267275 + 1712.76595745 + 1695.20103761 + 1560.1965602 = $6,607 Mil.
Total Current Assets was $4,434 Mil.
Total Assets was $15,957 Mil.
Property, Plant and Equipment(Net PPE) was $5,627 Mil.
Depreciation, Depletion and Amortization(DDA) was $829 Mil.
Selling, General & Admin. Expense(SGA) was $5,874 Mil.
Total Current Liabilities was $3,721 Mil.
Long-Term Debt was $3,863 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)
=(939.226519337 / 28626.7592158) / (970.01303781 / 27183.1124363)
=0.03280939 / 0.0356844
=0.9194

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)
=(1737.05722071 / 27183.1124363) / (1697.51381215 / 28626.7592158)
=0.24305591 / 0.24023517
=1.0117

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 - (5030.38674033 + 5361.87845304) / 15820.441989) / (1 - (4434.15906128 + 5627.11864407) / 15956.9752282)
=0.34311158 / 0.36947463
=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
=28626.7592158 / 27183.1124363
=1.0531

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))
=(829.308061348 / (829.308061348 + 5627.11864407)) / (795.885937765 / (795.885937765 + 5361.87845304))
=0.12844691 / 0.12924917
=0.9938

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)
=(6075.64786267 / 28626.7592158) / (5873.51062062 / 27183.1124363)
=0.21223666 / 0.21607204
=0.9822

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)
=((3461.32596685 + 4092.54143646) / 15820.441989) / ((3863.1029987 + 3720.99087353) / 15956.9752282)
=0.47747512 / 0.47528393
=1.0046

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
=(278.623763312 - -2.93025319483 - 1329.61611132) / 15820.441989
=-0.0662

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 -2.84 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 1.2250.92461.02181.11981.05030.93711.00841.18040.86130.9472
GMI 1.09480.97751.00140.99820.99760.98571.00121.01591.04021.0048
AQI 0.91141.00790.99440.98350.9721.01780.96861.07150.9810.9219
SGI 0.95280.96411.12171.1180.90321.12880.980.90351.10831.0302
DEPI 1.28321.11910.90651.04481.11640.92260.96861.08390.87360.9968
SGAI 1.02291.02561.00621.00521.00711.01390.99380.99771.03120.9798
LVGI 0.38262.66830.96180.94940.96080.95380.92851.04061.00871.0174
TATA -0.0837-0.0557-0.0622-0.0609-0.0486-0.0685-0.0693-0.0529-0.1072-0.0864
M-score -2.46-3.39-2.64-2.54-2.74-2.74-2.81-2.61-3.02-2.94

Delhaize Group SA Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.09681.14141.1771.09070.93480.96050.85070.85770.95790.9194
GMI 1.01581.02311.02861.03641.03751.03171.02091.01361.00791.0117
AQI 1.07151.07131.09761.01690.9810.98650.96380.91010.92190.9286
SGI 0.97240.94680.90290.89261.02111.00721.05921.08621.01881.0531
DEPI 1.02051.00511.00420.91620.95110.95450.9250.93940.99060.9938
SGAI 0.99941.03241.03491.03051.06510.98850.98530.99720.94730.9822
LVGI 1.04061.04921.05390.94871.00871.00880.99321.04461.01741.0046
TATA -0.0566-0.0538-0.0608-0.0671-0.1055-0.1088-0.1023-0.1178-0.0853-0.0662
M-score -2.65-2.63-2.66-2.78-3.02-3.01-3.05-3.14-2.93-2.84
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