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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-3.38 (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 -3.38 suggests that the company is not a manipulator.

SVU' s 10-Year Beneish M-Score Range
Min: -5.02   Max: 5.71
Current: -3.38

-5.02
5.71

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was 5.71. The lowest was -5.02. 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 * 0.1195+0.528 * -5.2177+0.404 * 1.4118+0.892 * 6.301+0.115 * -0.0408
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * -0.2393+4.679 * -0.3693-0.327 * 1.206
=-3.38

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

This Year (Nov13) TTM:Last Year (Nov12) TTM:
Accounts Receivable was $537 Mil.
Revenue was 4012 + 3948 + 5158 + 3857 = $16,975 Mil.
Gross Profit was 569 + 577 + 712 + 515 = $2,373 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 $317 Mil.
Selling, General & Admin. Expense(SGA) was $2,277 Mil.
Total Current Liabilities was $1,573 Mil.
Long-Term Debt was $2,957 Mil.
Net Income was 31 + 40 + 85 + -1412 = $-1,256 Mil.
Non Operating Income was -104 + -102 + 0 + 422 = $216 Mil.
Cash Flow from Operations was -42 + -42 + -189 + 541 = $268 Mil.
Accounts Receivable was $713 Mil.
Revenue was 4051 + 3939 + 5237 + -10533 = $2,694 Mil.
Gross Profit was 530 + 529 + 707 + -3731 = $-1,965 Mil.
Total Current Assets was $3,465 Mil.
Total Assets was $11,857 Mil.
Property, Plant and Equipment(Net PPE) was $5,980 Mil.
Depreciation, Depletion and Amortization(DDA) was $-42 Mil.
Selling, General & Admin. Expense(SGA) was $-1,510 Mil.
Total Current Liabilities was $3,274 Mil.
Long-Term Debt was $6,180 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)
=(537 / 16975) / (713 / 2694)
=0.03163476 / 0.26466221
=0.1195

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)
=(577 / 2694) / (569 / 16975)
=-0.72939866 / 0.13979381
=-5.2177

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 - (1845 + 1513) / 4711) / (1 - (3465 + 5980) / 11857)
=0.28720017 / 0.20342414
=1.4118

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
=16975 / 2694
=6.301

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))
=(-42 / (-42 + 5980)) / (317 / (317 + 1513))
=-0.00707309 / 0.17322404
=-0.0408

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)
=(2277 / 16975) / (-1510 / 2694)
=0.13413844 / -0.56050483
=-0.2393

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)
=((2957 + 1573) / 4711) / ((6180 + 3274) / 11857)
=0.96157928 / 0.79733491
=1.206

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
=(-1256 - 216 - 268) / 4711
=-0.3693

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 -3.38 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

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13
DSRI 0.88941.07140.93081.15760.84390.90841.02242.13490.67240.9469
GMI 0.9640.95861.00760.6680.94851.01091.00651.63050.99461.0361
AQI 0.9390.96770.98851.31651.09520.76141.02230.78272.04891.0372
SGI 1.05480.9671.01641.88311.17761.01170.9110.42750.99880.9862
DEPI 0.95291.0190.89071.44220.79510.96611.0272.35630.35170.8184
SGAI 1.0421.03821.08011.48311.04641.02660.99810.68240.95891.1157
LVGI 0.930.91390.96311.30120.9721.13540.96341.0820.73151.2052
TATA -0.0682-0.0835-0.06220.0096-0.0205-0.2493-0.0658-0.1943-0.1732-0.2142
M-score -2.89-2.85-2.83-1.68-2.57-3.86-2.82-2.43-3.15-3.62

SUPERVALU Inc Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
DSRI 1.85640.44770.66641.65432.695613.81130.94760.53730.31490.1195
GMI 1.53650.62680.96142.5062-1.4849-0.30251.04120.4271-0.7175-5.2177
AQI 1.02070.79942.03930.7430.7640.93761.03721.46571.42141.4118
SGI 0.50262.24591.02430.59130.36420.06910.98551.48392.4416.301
DEPI 2.07150.38190.34832.00654.9012-18.83640.81840.16520.0683-0.0408
SGAI 0.67521.46340.98470.4564-0.4247-2.86551.11072.2486-2.3689-0.2393
LVGI 0.97021.05780.73361.07261.08781.02331.20521.23261.21021.206
TATA -0.0764-0.1021-0.1732-0.1769-0.1675-0.0925-0.2275-0.437-0.3624-0.3693
M-score -2.01-2.80-3.16-2.19-3.015.71-3.68-5.02-3.85-3.38
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