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Delhaize Group SA (NYSE:DEG)
Beneish M-Score
-2.94 (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 -2.91 suggests that the company is not a manipulator.

DEG' s 10-Year Beneish M-Score Range
Min: -4.1   Max: -2.45
Current: -2.94

-4.1
-2.45

During the past 13 years, the highest Beneish M-Score of Delhaize Group SA was -2.45. The lowest was -4.10. And the median was -2.81.


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 * 0.997+0.528 * 1.0201+0.404 * 0.9365+0.892 * 1.0019+0.115 * 1.0382
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0052+4.679 * -0.0897-0.327 * 0.9987
=-2.91

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $773 Mil.
Revenue was 7135.31799729 + 7071.82320442 + 7272.47956403 + 7283.76534789 = $28,763 Mil.
Gross Profit was 1711.77266576 + 1697.51381215 + 1737.05722071 + 1746.24829468 = $6,893 Mil.
Total Current Assets was $4,421 Mil.
Total Assets was $14,840 Mil.
Property, Plant and Equipment(Net PPE) was $5,277 Mil.
Depreciation, Depletion and Amortization(DDA) was $797 Mil.
Selling, General & Admin. Expense(SGA) was $6,109 Mil.
Total Current Liabilities was $3,594 Mil.
Long-Term Debt was $3,401 Mil.
Net Income was -60.8930987821 + 110.497237569 + 137.602179837 + -118.690313779 = $69 Mil.
Non Operating Income was 6.76589986468 + 4.14364640884 + -17.7111716621 + 4.09276944065 = $-3 Mil.
Cash Flow from Operations was 276.048714479 + 167.127071823 + 606.267029973 + 353.342428377 = $1,403 Mil.
Accounts Receivable was $774 Mil.
Revenue was 6867.80104712 + 6654.49804433 + 7644.94680851 + 7542.15304799 = $28,709 Mil.
Gross Profit was 1667.53926702 + 1638.85267275 + 1863.03191489 + 1848.24902724 = $7,018 Mil.
Total Current Assets was $4,433 Mil.
Total Assets was $15,420 Mil.
Property, Plant and Equipment(Net PPE) was $5,281 Mil.
Depreciation, Depletion and Amortization(DDA) was $833 Mil.
Selling, General & Admin. Expense(SGA) was $6,066 Mil.
Total Current Liabilities was $3,855 Mil.
Long-Term Debt was $3,423 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)
=(772.665764547 / 28763.3861136) / (773.560209424 / 28709.3989479)
=0.02686282 / 0.02694449
=0.997

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)
=(1697.51381215 / 28709.3989479) / (1711.77266576 / 28763.3861136)
=0.24443817 / 0.23963076
=1.0201

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 - (4420.83897158 + 5277.40189445) / 14840.3247632) / (1 - (4433.2460733 + 5281.41361257) / 15420.1570681)
=0.34649403 / 0.37000255
=0.9365

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
=28763.3861136 / 28709.3989479
=1.0019

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))
=(833.110930898 / (833.110930898 + 5281.41361257)) / (797.247973627 / (797.247973627 + 5277.40189445))
=0.13625114 / 0.1312418
=1.0382

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)
=(6109.1798041 / 28763.3861136) / (6066.44662479 / 28709.3989479)
=0.21239432 / 0.21130525
=1.0052

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)
=((3400.54127199 + 3594.04600812) / 14840.3247632) / ((3422.77486911 + 3854.71204188) / 15420.1570681)
=0.47132306 / 0.47194635
=0.9987

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
=(68.5160048444 - -2.70885594795 - 1402.78524465) / 14840.3247632
=-0.0897

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 -2.91 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 1.04871.06371.03811.11741.0520.93711.00841.1080.84971.0229
GMI 0.98951.08380.99880.99790.99840.98571.00121.0111.03721.0126
AQI 0.96480.95210.99440.98360.97211.01780.96861.04850.99520.9286
SGI 0.99230.941.10531.120.90111.12880.980.97761.10950.9511
DEPI 0.96841.45940.93251.03271.11570.92260.96861.08480.87350.996
SGAI 1.00421.04561.0051.0130.99981.01390.99341.01151.00540.9916
LVGI 0.99141.03110.95540.95430.9610.95380.92851.0461.00511.0158
TATA -0.0986-0.0578-0.0682-0.0608-0.0486-0.0685-0.0693-0.0534-0.1106-0.0864
M-score -2.92-2.69-2.67-2.54-2.73-2.74-2.81-2.63-3.04-2.93

Delhaize Group SA Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.05851.06920.97230.9360.97620.7440.9481.01840.97990.997
GMI 1.01851.02181.02691.03691.03041.0231.021.01271.01731.0201
AQI 1.07131.09761.01060.99520.98650.9640.91580.92860.92860.9365
SGI 1.02090.9941.00381.00720.9910.99680.98030.95530.98811.0019
DEPI 1.000910.91530.95070.95710.92760.93910.98990.99521.0382
SGAI 1.04461.05121.05131.03650.96060.95130.95570.96331.00031.0052
LVGI 1.04921.05390.94991.00511.00880.9961.04321.01581.00460.9987
TATA -0.0547-0.0599-0.0681-0.1096-0.1126-0.1087-0.1222-0.086-0.067-0.0897
M-score -2.65-2.68-2.80-3.04-3.03-3.23-3.15-2.93-2.84-2.91
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