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Delhaize Group SA (NYSE:DEG)
Beneish M-Score
-2.78 (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 -2.99 suggests that the company is not a manipulator.

DEG' s 10-Year Beneish M-Score Range
Min: -3.96   Max: -2.46
Current: -2.78

-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 * 0.958+0.528 * 0.9968+0.404 * 1.0345+0.892 * 0.9695+0.115 * 0.9523
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0063+4.679 * -0.0977-0.327 * 0.9734
=-2.99

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $721 Mil.
Revenue was 6861.95286195 + 6298.7012987 + 6789.14919852 + 7038.65979381 = $26,988 Mil.
Gross Profit was 1674.52300786 + 1536.7965368 + 1644.88286067 + 1689.43298969 = $6,546 Mil.
Total Current Assets was $4,227 Mil.
Total Assets was $13,934 Mil.
Property, Plant and Equipment(Net PPE) was $4,713 Mil.
Depreciation, Depletion and Amortization(DDA) was $749 Mil.
Selling, General & Admin. Expense(SGA) was $5,730 Mil.
Total Current Liabilities was $3,696 Mil.
Long-Term Debt was $2,697 Mil.
Net Income was 118.967452301 + 30.303030303 + -67.8175092478 + 140.463917526 = $222 Mil.
Non Operating Income was 6.73400673401 + -1.08225108225 + -2.46609124538 + 10.3092783505 = $13 Mil.
Cash Flow from Operations was 567.901234568 + -27.0562770563 + 664.611590629 + 364.690721649 = $1,570 Mil.
Accounts Receivable was $776 Mil.
Revenue was 7032.60869565 + 6950.20746888 + 6780.521262 + 7074.76635514 = $27,838 Mil.
Gross Profit was 1694.29347826 + 1676.34854772 + 1659.8079561 + 1699.59946595 = $6,730 Mil.
Total Current Assets was $4,439 Mil.
Total Assets was $14,901 Mil.
Property, Plant and Equipment(Net PPE) was $5,299 Mil.
Depreciation, Depletion and Amortization(DDA) was $795 Mil.
Selling, General & Admin. Expense(SGA) was $5,873 Mil.
Total Current Liabilities was $3,609 Mil.
Long-Term Debt was $3,414 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)
=(720.538720539 / 26988.463153) / (775.815217391 / 27838.1037817)
=0.02669803 / 0.02786882
=0.958

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)
=(1536.7965368 / 27838.1037817) / (1674.52300786 / 26988.463153)
=0.24175675 / 0.24253457
=0.9968

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 - (4226.71156004 + 4712.68237935) / 13933.7822671) / (1 - (4438.85869565 + 5298.91304348) / 14900.8152174)
=0.35843737 / 0.34649403
=1.0345

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
=26988.463153 / 27838.1037817
=0.9695

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))
=(795.444951724 / (795.444951724 + 5298.91304348)) / (748.539507079 / (748.539507079 + 4712.68237935))
=0.13052153 / 0.13706447
=0.9523

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)
=(5730.24829395 / 26988.463153) / (5873.35149213 / 27838.1037817)
=0.21232214 / 0.21098246
=1.0063

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)
=((2696.96969697 + 3695.84736251) / 13933.7822671) / ((3414.40217391 + 3608.69565217) / 14900.8152174)
=0.45879984 / 0.47132306
=0.9734

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
=(221.916890882 - 13.4949427569 - 1570.14726979) / 13933.7822671
=-0.0977

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 -2.99 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.98190.72140.73961.02530.77260.95890.88430.89570.85990.958
GMI 1.02261.01131.00371.00941.01231.01591.01261.00991.0020.9968
AQI 0.98650.9640.91040.92190.92860.93650.99461.00441.07151.0345
SGI 0.97511.01461.03661.0111.04581.03771.03031.01540.97950.9695
DEPI 0.9540.92730.94161.01181.00041.03111.02240.93710.90530.9523
SGAI 0.95320.95220.96170.97411.01311.0141.00720.99841.00561.0063
LVGI 1.00880.9961.04571.01741.00480.99870.97020.99070.92170.9734
TATA -0.1092-0.1016-0.1194-0.0849-0.0665-0.089-0.0738-0.0917-0.0923-0.0977
M-score -3.02-3.21-3.29-2.87-2.99-2.92-2.89-2.99-3.02-2.99
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