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Flowers Foods Inc (NYSE:FLO)
Beneish M-Score
-2.77 (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.

Flowers Foods Inc has a M-score of -2.77 suggests that the company is not a manipulator.

FLO' s 10-Year Beneish M-Score Range
Min: -3.61   Max: -2.09
Current: -2.77

-3.61
-2.09

During the past 13 years, the highest Beneish M-Score of Flowers Foods Inc was -2.09. The lowest was -3.61. And the median was -2.74.


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 Flowers Foods Inc 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 * 0.9662+0.528 * 0.9825+0.404 * 1.0086+0.892 * 0.9946+0.115 * 0.9102
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0167+4.679 * -0.0555-0.327 * 0.9217
=-2.77

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $258 Mil.
Revenue was 1146.045 + 862.475 + 849.36 + 877.378 = $3,735 Mil.
Gross Profit was 560.129 + 408.716 + 406.382 + 419.359 = $1,795 Mil.
Total Current Assets was $490 Mil.
Total Assets was $2,423 Mil.
Property, Plant and Equipment(Net PPE) was $790 Mil.
Depreciation, Depletion and Amortization(DDA) was $129 Mil.
Selling, General & Admin. Expense(SGA) was $1,381 Mil.
Total Current Liabilities was $353 Mil.
Long-Term Debt was $671 Mil.
Net Income was 61.389 + 28.01 + 44.599 + 42.064 = $176 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 118.423 + 93.728 + 47.331 + 51.09 = $311 Mil.
Accounts Receivable was $269 Mil.
Revenue was 1153.917 + 825.161 + 878.492 + 898.153 = $3,756 Mil.
Gross Profit was 558.04 + 377.65 + 410.694 + 426.539 = $1,773 Mil.
Total Current Assets was $478 Mil.
Total Assets was $2,477 Mil.
Property, Plant and Equipment(Net PPE) was $840 Mil.
Depreciation, Depletion and Amortization(DDA) was $124 Mil.
Selling, General & Admin. Expense(SGA) was $1,366 Mil.
Total Current Liabilities was $325 Mil.
Long-Term Debt was $811 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)
=(258.249 / 3735.258) / (268.761 / 3755.723)
=0.0691382 / 0.07156039
=0.9662

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)
=(408.716 / 3755.723) / (560.129 / 3735.258)
=0.47205904 / 0.48044499
=0.9825

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 - (489.694 + 789.661) / 2422.852) / (1 - (477.684 + 840.286) / 2477.131)
=0.47196321 / 0.46794497
=1.0086

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
=3735.258 / 3755.723
=0.9946

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))
=(123.594 / (123.594 + 840.286)) / (129.486 / (129.486 + 789.661))
=0.12822551 / 0.14087627
=0.9102

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)
=(1381.06 / 3735.258) / (1365.85 / 3755.723)
=0.36973617 / 0.36367166
=1.0167

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)
=((671.339 + 352.908) / 2422.852) / ((810.988 + 325.189) / 2477.131)
=0.42274435 / 0.4586665
=0.9217

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
=(176.062 - 0 - 310.572) / 2422.852
=-0.0555

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.

Flowers Foods Inc has a M-score of -2.77 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.

Flowers Foods Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.92720.99220.96811.09080.93180.94031.03591.25680.8090.9249
GMI 0.99941.00141.0151.02781.02390.97641.01690.99970.99430.9832
AQI 0.9961.16221.06371.30290.99191.01251.02661.28021.13751.0316
SGI 1.10611.10071.07841.18571.0770.98961.07751.09851.22521.0044
DEPI 0.98580.95511.01611.07760.93740.95951.01720.97881.03080.8731
SGAI 0.99370.99170.9620.95790.96131.0211.00780.99180.99991.0154
LVGI 1.19780.9980.82011.63450.84750.77811.37771.25571.09290.8897
TATA -0.0694-0.0809-0.12150.018-0.0782-0.1275-0.007-0.0405-0.0158-0.0574
M-score -2.84-2.71-2.91-2.20-2.78-3.08-2.51-2.32-2.50-2.79

Flowers Foods Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.25681.16541.09130.97170.8090.87730.92680.92950.92630.9662
GMI 0.99970.97720.97050.97510.99431.00451.00781.00190.98490.9825
AQI 1.28021.52771.55171.07941.13751.08051.07961.03651.03161.0086
SGI 1.09851.14261.20181.23941.22521.14541.06841.01341.00280.9946
DEPI 0.97880.96270.95321.04951.03081.00980.9940.85410.87310.9102
SGAI 0.99180.99380.99921.00520.99991.00331.00320.98671.01271.0167
LVGI 1.25571.03571.00311.10181.09291.06231.1060.92150.88970.9217
TATA -0.0405-0.0155-0.0173-0.0096-0.0158-0.0507-0.0371-0.034-0.0574-0.0555
M-score -2.32-2.09-2.10-2.35-2.50-2.69-2.66-2.67-2.79-2.77
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