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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-2.68 (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 -2.77 suggests that the company is not a manipulator.

SVU' s 10-Year Beneish M-Score Range
Min: -4.8   Max: -0.94
Current: -2.68

-4.8
-0.94

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was -0.94. The lowest was -4.80. And the median was -2.82.


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 * 0.2067+0.528 * -2.972+0.404 * 0.938+0.892 * 4.7397+0.115 * -0.3381
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * -0.3359+4.679 * -0.1824-0.327 * 0.9836
=-2.77

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

This Year (Nov14) TTM:Last Year (Nov13) TTM:
Accounts Receivable was $526 Mil.
Revenue was 4204 + 4018 + 5234 + 3953 = $17,409 Mil.
Gross Profit was 593 + 572 + 752 + 590 = $2,507 Mil.
Total Current Assets was $2,241 Mil.
Total Assets was $5,078 Mil.
Property, Plant and Equipment(Net PPE) was $1,469 Mil.
Depreciation, Depletion and Amortization(DDA) was $286 Mil.
Selling, General & Admin. Expense(SGA) was $2,103 Mil.
Total Current Liabilities was $1,964 Mil.
Long-Term Debt was $2,839 Mil.
Net Income was 79 + 31 + 43 + 26 = $179 Mil.
Non Operating Income was 1 + 1 + 1 + 704 = $707 Mil.
Cash Flow from Operations was -54 + 103 + 57 + 292 = $398 Mil.
Accounts Receivable was $537 Mil.
Revenue was 4012 + 3948 + 5158 + -9445 = $3,673 Mil.
Gross Profit was 569 + 577 + 712 + -3430 = $-1,572 Mil.
Total Current Assets was $1,845 Mil.
Total Assets was $4,711 Mil.
Property, Plant and Equipment(Net PPE) was $1,513 Mil.
Depreciation, Depletion and Amortization(DDA) was $-79 Mil.
Selling, General & Admin. Expense(SGA) was $-1,321 Mil.
Total Current Liabilities was $1,573 Mil.
Long-Term Debt was $2,957 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)
=(526 / 17409) / (537 / 3673)
=0.03021426 / 0.14620201
=0.2067

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)
=(572 / 3673) / (593 / 17409)
=-0.42798802 / 0.14400597
=-2.972

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 - (2241 + 1469) / 5078) / (1 - (1845 + 1513) / 4711)
=0.2693974 / 0.28720017
=0.938

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
=17409 / 3673
=4.7397

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))
=(-79 / (-79 + 1513)) / (286 / (286 + 1469))
=-0.05509066 / 0.16296296
=-0.3381

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)
=(2103 / 17409) / (-1321 / 3673)
=0.12079959 / -0.35965151
=-0.3359

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)
=((2839 + 1964) / 5078) / ((2957 + 1573) / 4711)
=0.94584482 / 0.96157928
=0.9836

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
=(179 - 707 - 398) / 5078
=-0.1824

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 -2.77 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.

SUPERVALU Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
DSRI 1.0820.9221.15720.84390.90841.02240.98731.02151.34791.0544
GMI 0.95871.00780.66780.94851.01091.00651.00621.00871.65550.9091
AQI 0.96491.01341.29171.09520.76141.02230.78270.75382.8190.5288
SGI 0.9671.01641.88311.17761.01170.9110.92460.96180.47361.0034
DEPI 1.0230.8881.4410.79510.96611.0270.97581.0070.69021.0529
SGAI 1.03811.081.48331.04641.02660.99811.02230.9830.72650.8617
LVGI 0.89750.94331.32750.9721.13540.96341.0821.06530.82751.4868
TATA -0.082-0.05990.0096-0.0205-0.0491-0.0658-0.1943-0.1739-0.21420.0373
M-score -2.82-2.82-1.70-2.57-2.93-2.82-3.59-3.42-2.48-2.62

SUPERVALU Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DSRI 1.09691.071.34792.43143.57087.13031.05960.59670.40190.2067
GMI 1.01941.00911.65553.7964-3.6024-0.51080.93570.4023-0.423-2.972
AQI 0.7640.93762.8191.46571.42141.41180.52881.00081.0040.938
SGI 0.8950.8920.47360.32790.21520.10560.99851.472.27324.7397
DEPI 1.05891.03550.69021.1933.6946-2.33541.05290.61520.2067-0.3381
SGAI 1.01551.02690.72650.4153-0.1727-1.79040.83151.4308-3.3955-0.3359
LVGI 1.08781.02330.82751.23261.21021.2061.48680.99961.00240.9836
TATA -0.1801-0.1158-0.2142-0.4059-0.2999-0.2798-0.0766-0.1433-0.1964-0.1824
M-score -3.44-3.08-2.48-1.95-4.040.45-3.13-3.54-2.90-2.77
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