Switch to:
Delhaize Group SA (NYSE:DEG)
Beneish M-Score
-2.83 (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 -2.88 suggests that the company is not a manipulator.

DEG' s 10-Year Beneish M-Score Range
Min: -3.96   Max: -2.46
Current: -2.83

-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 * 0.8743+0.528 * 1.013+0.404 * 0.9946+0.892 * 1.0421+0.115 * 1.0224
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.978+4.679 * -0.073-0.327 * 0.9702
=-2.88

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $716 Mil.
Revenue was 7038.65979381 + 7164.40217391 + 7081.604426 + 7486.96844993 = $28,772 Mil.
Gross Profit was 1689.43298969 + 1718.75 + 1699.86168741 + 1783.26474623 = $6,891 Mil.
Total Current Assets was $4,454 Mil.
Total Assets was $14,939 Mil.
Property, Plant and Equipment(Net PPE) was $5,259 Mil.
Depreciation, Depletion and Amortization(DDA) was $790 Mil.
Selling, General & Admin. Expense(SGA) was $6,096 Mil.
Total Current Liabilities was $3,540 Mil.
Long-Term Debt was $3,403 Mil.
Net Income was 140.463917526 + -61.1413043478 + 110.650069156 + 142.661179698 = $333 Mil.
Non Operating Income was 10.3092783505 + 6.79347826087 + 4.14937759336 + -17.8326474623 = $3 Mil.
Cash Flow from Operations was 364.690721649 + 277.173913043 + 167.358229599 + 610.425240055 = $1,420 Mil.
Accounts Receivable was $786 Mil.
Revenue was 7074.76635514 + 6922.16358839 + 6611.39896373 + 7001.31233596 = $27,610 Mil.
Gross Profit was 1699.59946595 + 1680.73878628 + 1628.23834197 + 1690.28871391 = $6,699 Mil.
Total Current Assets was $4,645 Mil.
Total Assets was $15,276 Mil.
Property, Plant and Equipment(Net PPE) was $5,258 Mil.
Depreciation, Depletion and Amortization(DDA) was $810 Mil.
Selling, General & Admin. Expense(SGA) was $5,982 Mil.
Total Current Liabilities was $3,917 Mil.
Long-Term Debt was $3,401 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)
=(716.494845361 / 28771.6348437) / (786.381842457 / 27609.6412432)
=0.02490282 / 0.02848215
=0.8743

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)
=(1718.75 / 27609.6412432) / (1689.43298969 / 28771.6348437)
=0.24262776 / 0.23951748
=1.013

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 - (4453.60824742 + 5259.02061856) / 14939.4329897) / (1 - (4644.85981308 + 5257.67690254) / 15276.3684913)
=0.3498663 / 0.35177417
=0.9946

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
=28771.6348437 / 27609.6412432
=1.0421

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))
=(810.149161727 / (810.149161727 + 5257.67690254)) / (789.951372656 / (789.951372656 + 5259.02061856))
=0.13351555 / 0.13059266
=1.0224

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)
=(6096.39870841 / 28771.6348437) / (5981.69004135 / 27609.6412432)
=0.2118892 / 0.21665222
=0.978

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)
=((3403.35051546 + 3539.94845361) / 14939.4329897) / ((3400.53404539 + 3917.22296395) / 15276.3684913)
=0.46476322 / 0.47902465
=0.9702

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
=(332.633862032 - 3.41948674247 - 1419.64810435) / 14939.4329897
=-0.073

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 -2.88 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 1.2250.90271.04651.11981.05030.93710.96571.11190.87290.9861
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 1.00030.92261.16731.08630.93231.13050.94890.93121.07261.0511
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 -2.42-3.44-2.58-2.56-2.71-2.74-2.87-2.65-3.04-2.88

Delhaize Group SA Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.15271.06490.91460.95920.7050.72281.02260.92720.94830.8743
GMI 1.02861.03621.03741.03181.02031.01251.00781.01151.01621.013
AQI 1.09761.01690.9810.98650.9640.91040.92190.92860.93650.9946
SGI 0.93360.90711.02360.99811.03831.06061.01361.05251.04931.0421
DEPI 0.98520.89650.92330.9540.92730.94161.01181.00041.03111.0224
SGAI 1.03461.03031.06540.98860.98710.99650.94830.98340.9840.978
LVGI 1.05390.94871.00871.00880.9961.04571.01741.00460.99870.9702
TATA -0.0603-0.0683-0.1064-0.1088-0.1013-0.119-0.0841-0.0657-0.0882-0.073
M-score -2.65-2.80-3.05-3.02-3.20-3.29-2.86-2.83-2.91-2.88
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK