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Delhaize Group SA (NYSE:DEG)
Beneish M-Score
-2.87 (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: -2.87

-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 * 0.8873+0.528 * 1.0122+0.404 * 1.0044+0.892 * 1.025+0.115 * 0.9371
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.998+4.679 * -0.0917-0.327 * 0.9907
=-2.99

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $739 Mil.
Revenue was 6789.14919852 + 7038.65979381 + 7164.40217391 + 7081.604426 = $28,074 Mil.
Gross Profit was 1644.88286067 + 1689.43298969 + 1718.75 + 1699.86168741 = $6,753 Mil.
Total Current Assets was $4,877 Mil.
Total Assets was $14,953 Mil.
Property, Plant and Equipment(Net PPE) was $4,951 Mil.
Depreciation, Depletion and Amortization(DDA) was $780 Mil.
Selling, General & Admin. Expense(SGA) was $5,920 Mil.
Total Current Liabilities was $3,921 Mil.
Long-Term Debt was $3,300 Mil.
Net Income was -67.8175092478 + 140.463917526 + -61.1413043478 + 110.650069156 = $122 Mil.
Non Operating Income was -2.46609124538 + 10.3092783505 + 6.79347826087 + 4.14937759336 = $19 Mil.
Cash Flow from Operations was 664.611590629 + 364.690721649 + 277.173913043 + 167.358229599 = $1,474 Mil.
Accounts Receivable was $812 Mil.
Revenue was 6780.521262 + 7074.76635514 + 6922.16358839 + 6611.39896373 = $27,389 Mil.
Gross Profit was 1659.8079561 + 1699.59946595 + 1680.73878628 + 1628.23834197 = $6,668 Mil.
Total Current Assets was $5,026 Mil.
Total Assets was $15,904 Mil.
Property, Plant and Equipment(Net PPE) was $5,450 Mil.
Depreciation, Depletion and Amortization(DDA) was $796 Mil.
Selling, General & Admin. Expense(SGA) was $5,787 Mil.
Total Current Liabilities was $4,313 Mil.
Long-Term Debt was $3,439 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)
=(738.59432799 / 28073.8155923) / (812.07133059 / 27388.8501693)
=0.02630901 / 0.02964971
=0.8873

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)
=(1689.43298969 / 27388.8501693) / (1644.88286067 / 28073.8155923)
=0.24347077 / 0.24054185
=1.0122

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 - (4876.69543773 + 4950.67817509) / 14953.1442663) / (1 - (5026.06310014 + 5449.93141289) / 15903.9780521)
=0.34278882 / 0.34129722
=1.0044

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
=28073.8155923 / 27388.8501693
=1.025

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))
=(796.45334284 / (796.45334284 + 5449.93141289)) / (779.704746617 / (779.704746617 + 4950.67817509))
=0.12750629 / 0.13606503
=0.9371

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)
=(5919.88205384 / 28073.8155923) / (5786.9134625 / 27388.8501693)
=0.21086845 / 0.2112872
=0.998

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)
=((3299.63008631 + 3921.08508015) / 14953.1442663) / ((3438.95747599 + 4312.75720165) / 15903.9780521)
=0.48288942 / 0.48740728
=0.9907

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
=(122.155173086 - 18.7860429594 - 1473.83445492) / 14953.1442663
=-0.0917

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 0.90271.04651.11981.05030.93710.96571.02770.96640.98780.9754
GMI 0.97751.00140.99820.99760.98571.00121.0111.03611.00671.0121
AQI 1.00790.99440.98350.9721.01780.96861.04851.00270.92191.0044
SGI 0.92261.16731.08630.93231.13050.94891.00760.96881.04930.9324
DEPI 1.11910.90651.04481.11640.92260.96861.08480.87280.99681.0181
SGAI 1.02561.00621.00521.00711.01390.99341.01150.98191.00890.9986
LVGI 2.66830.96180.94940.96080.95380.92851.0461.0041.01740.9907
TATA -0.0557-0.0622-0.0609-0.0486-0.0685-0.0693-0.0534-0.1075-0.0872-0.0884
M-score -3.44-2.58-2.56-2.71-2.74-2.87-2.68-3.03-2.89-2.96

Delhaize Group SA Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.98521.00851.05790.77880.79941.02530.92880.94990.8760.8873
GMI 1.0291.03311.02791.01751.01081.00941.01361.01831.0151.0122
AQI 1.01691.00270.98650.9640.91040.92190.92860.93650.99461.0044
SGI 0.98050.92830.9050.93980.9591.0111.05071.04751.04011.025
DEPI 0.89410.92240.95670.92990.94421.01181.00041.03111.02240.9371
SGAI 1.04141.01780.94420.9430.95180.97411.01331.01361.00690.998
LVGI 0.94871.0041.00880.9961.04571.01741.00460.99870.97020.9907
TATA -0.0686-0.1067-0.1092-0.1016-0.1194-0.0849-0.0665-0.089-0.0738-0.0917
M-score -2.81-3.03-3.01-3.21-3.30-2.87-2.84-2.91-2.89-2.99
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