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Delhaize Group SA (NYSE:DEG)
Beneish M-Score
-2.65 (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 -2.60 suggests that the company is not a manipulator.

DEG' s Beneish M-Score Range Over the Past 10 Years
Min: -39.33   Max: -2.44
Current: -2.65

-39.33
-2.44

During the past 13 years, the highest Beneish M-Score of Delhaize Group SA was -2.44. The lowest was -39.33. 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 * 1.1707+0.528 * 0.9925+0.404 * 0.9613+0.892 * 1.0037+0.115 * 1.0394
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9945+4.679 * -0.0573-0.327 * 0.9952
=-2.60

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $771 Mil.
Revenue was 6851.89309577 + 6884.53159041 + 6892.25589226 + 6861.95286195 = $27,491 Mil.
Gross Profit was 1679.28730512 + 1655.77342048 + 1672.27833895 + 1674.52300786 = $6,682 Mil.
Total Current Assets was $4,273 Mil.
Total Assets was $13,864 Mil.
Property, Plant and Equipment(Net PPE) was $4,692 Mil.
Depreciation, Depletion and Amortization(DDA) was $745 Mil.
Selling, General & Admin. Expense(SGA) was $5,797 Mil.
Total Current Liabilities was $3,458 Mil.
Long-Term Debt was $2,616 Mil.
Net Income was 121.380846325 + 124.183006536 + 132.435465769 + 118.967452301 = $497 Mil.
Non Operating Income was 1.1135857461 + 8.71459694989 + -3.367003367 + 6.73400673401 = $13 Mil.
Cash Flow from Operations was -159.242761693 + 676.470588235 + 193.041526375 + 567.901234568 = $1,278 Mil.
Accounts Receivable was $656 Mil.
Revenue was 6298.7012987 + 7145.49938348 + 6913.65979381 + 7032.60869565 = $27,390 Mil.
Gross Profit was 1536.7965368 + 1711.46732429 + 1664.94845361 + 1694.29347826 = $6,608 Mil.
Total Current Assets was $3,991 Mil.
Total Assets was $13,550 Mil.
Property, Plant and Equipment(Net PPE) was $4,577 Mil.
Depreciation, Depletion and Amortization(DDA) was $760 Mil.
Selling, General & Admin. Expense(SGA) was $5,808 Mil.
Total Current Liabilities was $3,274 Mil.
Long-Term Debt was $2,690 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)
=(770.601336303 / 27490.6334404) / (655.844155844 / 27390.4691716)
=0.02803141 / 0.02394425
=1.1707

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)
=(6607.50579296 / 27390.4691716) / (6681.8620724 / 27490.6334404)
=0.24123376 / 0.24305959
=0.9925

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 - (4272.8285078 + 4691.53674833) / 13864.142539) / (1 - (3991.34199134 + 4576.83982684) / 13549.7835498)
=0.35341365 / 0.36765176
=0.9613

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
=27490.6334404 / 27390.4691716
=1.0037

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))
=(760.18830179 / (760.18830179 + 4576.83982684)) / (745.030181578 / (745.030181578 + 4691.53674833))
=0.14243663 / 0.13704056
=1.0394

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)
=(5797.26946158 / 27490.6334404) / (5808.25661975 / 27390.4691716)
=0.21088163 / 0.21205393
=0.9945

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)
=((2615.81291759 + 3457.68374165) / 13864.142539) / ((2690.47619048 + 3273.80952381) / 13549.7835498)
=0.43807229 / 0.44017572
=0.9952

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
=(496.966770931 - 13.195186063 - 1278.17058749) / 13864.142539
=-0.0573

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 -2.60 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.06211.11781.05270.93710.96571.02770.87191.06820.99980.8932
GMI 0.99880.99790.99840.98571.00121.0111.03721.01261.00510.991
AQI 0.99440.98350.9721.01780.96861.07150.98110.92191.00441.0176
SGI 1.15021.08820.93021.13050.94891.00761.07380.97040.90971.0089
DEPI 0.93251.03131.11730.92260.96861.08060.87390.99941.01810.9797
SGAI 1.0051.0130.99981.01390.99341.01151.00540.99160.99231.0053
LVGI 0.96180.94940.96080.95380.92851.04061.00931.01740.99070.9439
TATA -0.0591-0.0473-0.0486-0.0685-0.0693-0.0533-0.1108-0.0864-0.0884-0.0704
M-score -2.56-2.50-2.71-2.74-2.87-2.67-3.06-2.88-2.96-2.88

Delhaize Group SA Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.02530.77260.95890.88830.88830.85260.94980.95640.93811.1707
GMI 1.00941.01231.01591.01181.01191.00410.99890.99770.99110.9925
AQI 0.92190.92860.93650.99461.00441.07151.03451.03031.01760.9613
SGI 1.0111.04581.03771.02571.02380.98780.97780.98270.96061.0037
DEPI 1.01181.00041.03111.02240.93710.90530.95230.97011.02371.0394
SGAI 0.97411.01311.0141.00760.99831.00491.00561.00961.00510.9945
LVGI 1.01741.00480.99870.97020.99070.92170.97340.96680.94390.9952
TATA -0.0856-0.0672-0.0897-0.0746-0.0921-0.0929-0.0983-0.0858-0.0715-0.0573
M-score -2.87-2.99-2.92-2.89-2.99-3.02-2.99-2.92-2.88-2.60
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