Switch to:
GuruFocus has detected 1 Warning Sign with SUPERVALU Inc $SVU.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-2.28 (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 -2.28 suggests that the company is not a manipulator.

SVU' s Beneish M-Score Range Over the Past 10 Years
Min: -5.02   Max: 0.22
Current: -2.28

-5.02
0.22

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was 0.22. The lowest was -5.02. And the median was -2.67.


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 * 0.7832+0.528 * 0.9992+0.404 * 1.2677+0.892 * 1.1583+0.115 * 0.6333
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0301+4.679 * 0.0411-0.327 * 0.9832
=-2.28

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Nov16) TTM:Last Year (Nov15) TTM:
Accounts Receivable was $440 Mil.
Revenue was 3003 + 3865 + 5196 + 7513 = $19,577 Mil.
Gross Profit was 407 + 562 + 779 + 1141 = $2,889 Mil.
Total Current Assets was $1,850 Mil.
Total Assets was $4,474 Mil.
Property, Plant and Equipment(Net PPE) was $1,014 Mil.
Depreciation, Depletion and Amortization(DDA) was $274 Mil.
Selling, General & Admin. Expense(SGA) was $2,421 Mil.
Total Current Liabilities was $2,597 Mil.
Long-Term Debt was $1,454 Mil.
Net Income was -26 + 31 + 46 + 52 = $103 Mil.
Non Operating Income was 1 + -81 + 1 + -390 = $-469 Mil.
Cash Flow from Operations was -62 + 157 + 121 + 172 = $388 Mil.
Accounts Receivable was $485 Mil.
Revenue was 3045 + 4062 + 5407 + 4387 = $16,901 Mil.
Gross Profit was 436 + 583 + 810 + 663 = $2,492 Mil.
Total Current Assets was $1,867 Mil.
Total Assets was $4,643 Mil.
Property, Plant and Equipment(Net PPE) was $1,458 Mil.
Depreciation, Depletion and Amortization(DDA) was $227 Mil.
Selling, General & Admin. Expense(SGA) was $2,029 Mil.
Total Current Liabilities was $1,786 Mil.
Long-Term Debt was $2,490 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)
=(440 / 19577) / (485 / 16901)
=0.02247535 / 0.02869653
=0.7832

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)
=(2492 / 16901) / (2889 / 19577)
=0.1474469 / 0.14757113
=0.9992

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 - (1850 + 1014) / 4474) / (1 - (1867 + 1458) / 4643)
=0.35985695 / 0.28386819
=1.2677

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
=19577 / 16901
=1.1583

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))
=(227 / (227 + 1458)) / (274 / (274 + 1014))
=0.1347181 / 0.21273292
=0.6333

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)
=(2421 / 19577) / (2029 / 16901)
=0.12366553 / 0.12005207
=1.0301

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)
=((1454 + 2597) / 4474) / ((2490 + 1786) / 4643)
=0.90545373 / 0.92095628
=0.9832

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
=(103 - -469 - 388) / 4474
=0.0411

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 -2.28 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 local exchange's currency.

SUPERVALU Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
DSRI 1.15760.84390.90841.02242.13490.67060.94731.05080.94140.9564
GMI 0.6680.94851.01091.00651.63050.97831.03820.92471.01930.9799
AQI 1.31651.09520.76141.02230.78272.04891.03720.52880.93471.0066
SGI 1.88311.17761.01170.9110.42751.00150.98581.00681.03850.9783
DEPI 1.44220.79510.96611.0272.35630.35170.81841.05291.03371.0338
SGAI 1.48311.04641.02660.99810.68240.97661.10740.84890.98431.0032
LVGI 1.30120.9721.13540.96341.0820.73151.20521.48680.97530.9653
TATA -0.0161-0.0541-0.2493-0.0658-0.1943-0.1732-0.21540.22090.060.0323
M-score -1.80-2.73-3.86-2.82-2.43-3.16-3.62-1.75-2.22-2.38

SUPERVALU Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
DSRI 0.90240.95370.94260.92710.89210.9580.8360.87640.89910.7832
GMI 0.99571.01531.01880.98840.98110.97450.97450.98720.98610.9992
AQI 1.0040.9380.93470.9980.9951.05371.00660.94370.96741.2677
SGI 1.01231.02711.03721.04411.04240.96251.11921.09861.08511.1583
DEPI 1.07271.0631.03371.03331.01521.20971.03381.01461.01050.6333
SGAI 0.8310.86310.98461.03721.03690.99570.99810.99941.00061.0301
LVGI 1.00240.98360.97530.96580.96150.97370.96530.96310.96340.9832
TATA 0.11840.11660.060.05080.05530.0390.05240.04710.04750.0411
M-score -1.97-1.93-2.22-2.27-2.29-2.33-2.27-2.30-2.28-2.28
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK