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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-2.38 (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.

SUPERVALU Inc has a M-score of -2.38 suggests that the company is not a manipulator.

SVU' s Beneish M-Score Range Over the Past 10 Years
Min: -3.86   Max: -1.06
Current: -2.38

-3.86
-1.06

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was -1.06. The lowest was -3.86. And the median was -2.77.


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 SUPERVALU 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 * 0.9564+0.528 * 0.9799+0.404 * 1.0066+0.892 * 0.9783+0.115 * 1.0338
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0032+4.679 * 0.0323-0.327 * 0.9653
=-2.38

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

This Year (Feb16) TTM:Last Year (Feb15) TTM:
Accounts Receivable was $451 Mil.
Revenue was 3946 + 4114 + 4062 + 5407 = $17,529 Mil.
Gross Profit was 590 + 601 + 583 + 810 = $2,584 Mil.
Total Current Assets was $1,635 Mil.
Total Assets was $4,370 Mil.
Property, Plant and Equipment(Net PPE) was $1,481 Mil.
Depreciation, Depletion and Amortization(DDA) was $276 Mil.
Selling, General & Admin. Expense(SGA) was $2,124 Mil.
Total Current Liabilities was $1,572 Mil.
Long-Term Debt was $2,400 Mil.
Net Income was 52 + 34 + 31 + 61 = $178 Mil.
Non Operating Income was -390 + 1 + 0 + 2 = $-387 Mil.
Cash Flow from Operations was 172 + -25 + 165 + 112 = $424 Mil.
Accounts Receivable was $482 Mil.
Revenue was 4387 + 4225 + 4041 + 5264 = $17,917 Mil.
Gross Profit was 663 + 596 + 574 + 755 = $2,588 Mil.
Total Current Assets was $1,700 Mil.
Total Assets was $4,434 Mil.
Property, Plant and Equipment(Net PPE) was $1,470 Mil.
Depreciation, Depletion and Amortization(DDA) was $285 Mil.
Selling, General & Admin. Expense(SGA) was $2,164 Mil.
Total Current Liabilities was $1,517 Mil.
Long-Term Debt was $2,658 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)
=(451 / 17529) / (482 / 17917)
=0.02572879 / 0.02690183
=0.9564

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)
=(601 / 17917) / (590 / 17529)
=0.14444382 / 0.14741286
=0.9799

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 - (1635 + 1481) / 4370) / (1 - (1700 + 1470) / 4434)
=0.28695652 / 0.28506991
=1.0066

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
=17529 / 17917
=0.9783

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))
=(285 / (285 + 1470)) / (276 / (276 + 1481))
=0.16239316 / 0.15708594
=1.0338

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)
=(2124 / 17529) / (2164 / 17917)
=0.12117063 / 0.12077915
=1.0032

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)
=((2400 + 1572) / 4370) / ((2658 + 1517) / 4434)
=0.90892449 / 0.94158773
=0.9653

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
=(178 - -387 - 424) / 4370
=0.0323

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.

SUPERVALU Inc has a M-score of -2.38 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.

SUPERVALU Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
DSRI 1.15760.84390.90841.02240.98730.69831.97181.05440.94120.9512
GMI 0.66780.94851.01091.00651.00621.00871.65550.90911.02020.9814
AQI 1.31651.09520.76141.02230.78272.04891.03720.52880.93471.0066
SGI 1.88311.17761.01170.9110.92460.96180.47361.00341.03880.9837
DEPI 1.4410.79510.96611.0270.97580.41461.67661.05291.03371.0338
SGAI 1.48331.04641.02660.99811.02230.9830.72650.86170.98091.0024
LVGI 1.30120.9721.13540.96341.0820.73151.20521.48680.97530.9653
TATA -0.0161-0.0541-0.2493-0.0658-0.1943-0.1732-0.21420.0373-0.04960.0323
M-score -1.80-2.73-3.86-2.82-3.59-3.15-2.64-2.62-2.73-2.38

SUPERVALU Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
DSRI 0.12081.050.86970.90120.95240.94140.92590.89330.90210.9564
GMI -4.79660.92030.97150.99621.01581.01930.98890.98050.97130.9799
AQI 1.41180.52881.00081.0040.9380.93470.9980.9951.05371.0066
SGI 6.23711.00751.00861.01371.02841.03851.04541.0411.02210.9783
DEPI -0.04081.05291.05861.07271.0631.03371.03331.01521.02071.0338
SGAI -0.26170.85270.80280.83070.86280.98431.03681.03730.99691.0032
LVGI 1.2061.48680.99961.00240.98360.97530.96580.96150.97370.9653
TATA -0.41820.22090.15690.11840.11660.060.05080.03620.020.0323
M-score -3.44-1.75-1.83-1.97-1.93-2.22-2.27-2.38-2.44-2.38
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