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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-3.20 (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 -3.20 suggests that the company is not a manipulator.

SVU' s 10-Year Beneish M-Score Range
Min: -5.05   Max: 5.71
Current: -3.2

-5.05
5.71

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was 5.71. The lowest was -5.05. And the median was -2.81.


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 * 0.9094+0.528 * 0.9948+0.404 * 1.004+0.892 * 1.0046+0.115 * 1.0092
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8296+4.679 * -0.1424-0.327 * 1.0024
=-3.20

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

This Year (Aug14) TTM:Last Year (Aug13) TTM:
Accounts Receivable was $528 Mil.
Revenue was 5234 + 4018 + 3953 + 4012 = $17,217 Mil.
Gross Profit was 752 + 572 + 590 + 569 = $2,483 Mil.
Total Current Assets was $1,723 Mil.
Total Assets was $4,486 Mil.
Property, Plant and Equipment(Net PPE) was $1,455 Mil.
Depreciation, Depletion and Amortization(DDA) was $310 Mil.
Selling, General & Admin. Expense(SGA) was $2,030 Mil.
Total Current Liabilities was $1,631 Mil.
Long-Term Debt was $2,710 Mil.
Net Income was 43 + 31 + 26 + 31 = $131 Mil.
Non Operating Income was 1 + 1 + 704 + -104 = $602 Mil.
Cash Flow from Operations was -132 + 57 + 292 + -49 = $168 Mil.
Accounts Receivable was $578 Mil.
Revenue was 3948 + 5241 + 3899 + 4051 = $17,139 Mil.
Gross Profit was 577 + 795 + 557 + 530 = $2,459 Mil.
Total Current Assets was $1,807 Mil.
Total Assets was $4,738 Mil.
Property, Plant and Equipment(Net PPE) was $1,555 Mil.
Depreciation, Depletion and Amortization(DDA) was $335 Mil.
Selling, General & Admin. Expense(SGA) was $2,436 Mil.
Total Current Liabilities was $1,653 Mil.
Long-Term Debt was $2,921 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)
=(528 / 17217) / (578 / 17139)
=0.03066736 / 0.03372425
=0.9094

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 / 17139) / (752 / 17217)
=0.14347395 / 0.14421792
=0.9948

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 - (1723 + 1455) / 4486) / (1 - (1807 + 1555) / 4738)
=0.29157379 / 0.2904179
=1.004

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
=17217 / 17139
=1.0046

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))
=(335 / (335 + 1555)) / (310 / (310 + 1455))
=0.17724868 / 0.17563739
=1.0092

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)
=(2030 / 17217) / (2436 / 17139)
=0.11790672 / 0.14213198
=0.8296

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)
=((2710 + 1631) / 4486) / ((2921 + 1653) / 4738)
=0.96767722 / 0.96538624
=1.0024

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
=(131 - 602 - 168) / 4486
=-0.1424

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 -3.20 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 1.07140.93081.15760.84390.90841.02242.13490.67240.94461.057
GMI 0.95861.00760.6680.94851.01091.00651.63050.99461.020.9235
AQI 0.96770.98851.31651.09520.76141.02230.78272.04891.03720.5288
SGI 0.9671.01641.88311.17761.01170.9110.42750.99880.98861.0009
DEPI 1.0190.89071.44220.79510.96611.0272.35630.35170.81841.0529
SGAI 1.03821.08011.48311.04641.02660.99810.68240.95891.13210.8492
LVGI 0.91390.96311.30120.9721.13540.96341.0820.73151.20521.4868
TATA -0.0835-0.06220.0096-0.0205-0.2493-0.0658-0.1943-0.1732-0.21420.0373
M-score -2.85-2.83-1.68-2.57-3.86-2.82-2.43-3.15-3.63-2.61

SUPERVALU Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 1.65432.695613.81130.94530.53330.31260.11871.05620.94320.9094
GMI 2.5062-1.4849-0.30251.02490.4079-0.686-4.99310.91930.97150.9948
AQI 0.7430.7640.93761.03721.46571.42141.41180.52881.00081.004
SGI 0.59130.36420.06910.98791.49482.4596.34741.00160.931.0046
DEPI 2.00654.9012-18.83640.81840.16520.0683-0.04081.05291.05861.0092
SGAI 0.4564-0.4247-2.86551.12712.3471-2.4766-0.25040.85190.80390.8296
LVGI 1.07261.08781.02331.20521.23261.21021.2061.48680.99961.0024
TATA -0.1769-0.1675-0.0925-0.2275-0.4383-0.3641-0.3696-0.0768-0.1449-0.1424
M-score -2.19-3.015.71-3.69-5.05-3.81-3.22-3.15-3.25-3.20
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