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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 -2.68 suggests that the company is not a manipulator.

SVU' s 10-Year Beneish M-Score Range
Min: -5.05   Max: 5.71
Current: -2.68

-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 -2.77.


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 * 0.962+0.528 * 1.0134+0.404 * 0.938+0.892 * 1.0182+0.115 * 1.063
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8633+4.679 * -0.0416-0.327 * 0.9836
=-2.68

* 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 + 3955 = $17,411 Mil.
Gross Profit was 593 + 572 + 752 + 592 = $2,509 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 $2,108 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 + -2 = $1 Mil.
Cash Flow from Operations was -54 + 103 + 57 + 283 = $389 Mil.
Accounts Receivable was $537 Mil.
Revenue was 4012 + 3947 + 5241 + 3899 = $17,099 Mil.
Gross Profit was 569 + 576 + 795 + 557 = $2,497 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 $2,398 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 / 17411) / (537 / 17099)
=0.03021079 / 0.03140535
=0.962

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 / 17099) / (593 / 17411)
=0.14603193 / 0.1441043
=1.0134

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
=17411 / 17099
=1.0182

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))
=(317 / (317 + 1513)) / (286 / (286 + 1469))
=0.17322404 / 0.16296296
=1.063

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)
=(2108 / 17411) / (2398 / 17099)
=0.12107288 / 0.14024212
=0.8633

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 - 1 - 389) / 5078
=-0.0416

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 -2.68 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

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DSRI 2.695613.81130.94530.53330.31260.11871.05620.87630.90920.962
GMI -1.4849-0.30251.02490.4079-0.6862-4.99480.9190.96970.99381.0134
AQI 0.7640.93761.03721.46571.42141.41180.52881.00081.0040.938
SGI 0.36420.06910.98791.49482.45886.34711.00171.00111.00471.0182
DEPI 4.9012-18.83640.81840.16520.0683-0.04081.05291.05861.07271.063
SGAI -0.4247-2.86551.12712.3471-2.4758-0.25020.8530.80330.83140.8633
LVGI 1.08781.02331.20521.23261.21021.2061.48680.99961.00240.9836
TATA -0.1675-0.0925-0.2275-0.4383-0.3858-0.41540.0373-0.0276-0.0606-0.0416
M-score -3.015.71-3.69-5.05-3.91-3.44-2.61-2.70-2.81-2.68
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