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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-2.90 (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 -2.90 suggests that the company is not a manipulator.

SVU' s 10-Year Beneish M-Score Range
Min: -4.04   Max: 0.45
Current: -2.9

-4.04
0.45

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was 0.45. The lowest was -4.04. 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 * 0.4019+0.528 * -0.423+0.404 * 1.004+0.892 * 2.2732+0.115 * 0.2067
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * -3.3955+4.679 * -0.1964-0.327 * 1.0024
=-2.90

* 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 4018 + 5234 + 3953 + 4012 = $17,217 Mil.
Gross Profit was 572 + 752 + 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 $288 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 31 + 43 + 26 + 31 = $131 Mil.
Non Operating Income was 1 + 1 + 704 + -104 = $602 Mil.
Cash Flow from Operations was 103 + 57 + 292 + -42 = $410 Mil.
Accounts Receivable was $578 Mil.
Revenue was 3948 + 5158 + -9445 + 7913 = $7,574 Mil.
Gross Profit was 577 + 712 + -3430 + 1679 = $-462 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 $55 Mil.
Selling, General & Admin. Expense(SGA) was $-263 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 / 7574)
=0.03066736 / 0.0763137
=0.4019

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)
=(752 / 7574) / (572 / 17217)
=-0.06099815 / 0.14421792
=-0.423

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 / 7574
=2.2732

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))
=(55 / (55 + 1555)) / (288 / (288 + 1455))
=0.03416149 / 0.16523236
=0.2067

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) / (-263 / 7574)
=0.11790672 / -0.03472406
=-3.3955

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 - 410) / 4486
=-0.1964

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 -2.90 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

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 1.08761.09691.071.34792.43143.57087.13031.05960.59670.4019
GMI 1.00361.01941.00911.65553.7964-3.6024-0.51080.93570.4023-0.423
AQI 0.7430.7640.93762.8191.46571.42141.41180.52881.00081.004
SGI 0.89930.8950.8920.47360.32790.21520.10560.99851.472.2732
DEPI 1.06231.05891.03550.69021.1933.6946-2.33541.05290.61520.2067
SGAI 0.99771.01551.02690.72650.4153-0.1727-1.79040.83151.4308-3.3955
LVGI 1.07261.08781.02330.82751.23261.21021.2061.48680.99961.0024
TATA -0.1769-0.1801-0.1158-0.2142-0.4059-0.2999-0.2798-0.0766-0.1433-0.1964
M-score -3.44-3.44-3.08-2.48-1.95-4.040.45-3.13-3.54-2.90
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