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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-2.88 (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 -2.88 suggests that the company is not a manipulator.

SVU' s 10-Year Beneish M-Score Range
Min: -4.8   Max: -0.8
Current: -2.88

-4.8
-0.8

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was -0.80. The lowest was -4.80. And the median was -2.80.


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 * 1.2836+0.528 * 1.3049+0.404 * 1.0008+0.892 * 0.6834+0.115 * 1.573
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6307+4.679 * -0.1422-0.327 * 0.9996
=-2.88

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

This Year (May14) TTM:Last Year (May13) TTM:
Accounts Receivable was $500 Mil.
Revenue was 5234 + 3953 + 4012 + 3948 = $17,147 Mil.
Gross Profit was 752 + 590 + 569 + 577 = $2,488 Mil.
Total Current Assets was $1,613 Mil.
Total Assets was $4,354 Mil.
Property, Plant and Equipment(Net PPE) was $1,447 Mil.
Depreciation, Depletion and Amortization(DDA) was $293 Mil.
Selling, General & Admin. Expense(SGA) was $2,017 Mil.
Total Current Liabilities was $1,507 Mil.
Long-Term Debt was $2,719 Mil.
Net Income was 43 + 26 + 31 + 40 = $140 Mil.
Non Operating Income was 1 + 704 + -104 + -102 = $499 Mil.
Cash Flow from Operations was 57 + 292 + -42 + -47 = $260 Mil.
Accounts Receivable was $570 Mil.
Revenue was 5241 + 3899 + 7913 + 8039 = $25,092 Mil.
Gross Profit was 795 + 557 + 1679 + 1720 = $4,751 Mil.
Total Current Assets was $1,680 Mil.
Total Assets was $4,691 Mil.
Property, Plant and Equipment(Net PPE) was $1,618 Mil.
Depreciation, Depletion and Amortization(DDA) was $583 Mil.
Selling, General & Admin. Expense(SGA) was $4,680 Mil.
Total Current Liabilities was $1,678 Mil.
Long-Term Debt was $2,877 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)
=(500 / 17147) / (570 / 25092)
=0.02915962 / 0.0227164
=1.2836

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)
=(590 / 25092) / (752 / 17147)
=0.18934322 / 0.14509827
=1.3049

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 - (1613 + 1447) / 4354) / (1 - (1680 + 1618) / 4691)
=0.29719798 / 0.29695161
=1.0008

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
=17147 / 25092
=0.6834

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))
=(583 / (583 + 1618)) / (293 / (293 + 1447))
=0.2648796 / 0.1683908
=1.573

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)
=(2017 / 17147) / (4680 / 25092)
=0.11762991 / 0.18651363
=0.6307

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)
=((2719 + 1507) / 4354) / ((2877 + 1678) / 4691)
=0.97060175 / 0.97100831
=0.9996

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
=(140 - 499 - 260) / 4354
=-0.1422

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 -2.88 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 1.0820.9221.15720.84390.90841.02240.98731.02151.34461.057
GMI 0.95871.00780.66780.94851.01091.00651.00621.00871.62980.9235
AQI 0.96491.01341.29171.09520.76141.02230.78270.75382.8190.5288
SGI 0.9671.01641.88311.17761.01170.9110.92460.96180.47481.0009
DEPI 1.0230.8881.4410.79510.96611.0270.97581.0070.69021.0529
SGAI 1.03811.081.48331.04641.02660.99811.02230.9830.73720.8492
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 -2.82-2.82-1.70-2.57-2.93-2.82-3.59-3.42-2.50-2.61

SUPERVALU Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
DSRI 1.02641.08761.09691.070.7571.13031.28781.53151.87741.2836
GMI 1.00371.00361.01941.00911.07661.17051.2791.49651.39841.3049
AQI 0.75030.7430.7640.93762.8191.46571.42141.41180.52881.0008
SGI 0.9730.89930.8950.8920.84320.70530.59680.49180.56350.6834
DEPI 1.01541.06231.05891.03550.39450.46660.56140.74271.8421.573
SGAI 0.98710.99771.01551.02691.01550.94220.81920.69870.61560.6307
LVGI 1.06841.07261.08781.02330.82751.23261.21021.2061.48680.9996
TATA -0.1739-0.1769-0.1801-0.1158-0.2525-0.4971-0.3892-0.3696-0.0768-0.1422
M-score -3.41-3.44-3.44-3.08-3.27-4.80-4.17-3.79-2.40-2.88
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