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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-2.40 (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 -2.40 suggests that the company is not a manipulator.

SVU' s Beneish M-Score Range Over the Past 10 Years
Min: -5.02   Max: 0.22
Current: -2.4

-5.02
0.22

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was 0.22. The lowest was -5.02. And the median was -2.69.


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 * 1.0041+0.528 * 0.9927+0.404 * 0.9437+0.892 * 0.9589+0.115 * 1.0146
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0058+4.679 * 0.027-0.327 * 0.9631
=-2.40

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

This Year (May16) TTM:Last Year (May15) TTM:
Accounts Receivable was $466 Mil.
Revenue was 5196 + 3946 + 4114 + 4062 = $17,318 Mil.
Gross Profit was 779 + 590 + 601 + 583 = $2,553 Mil.
Total Current Assets was $1,691 Mil.
Total Assets was $4,373 Mil.
Property, Plant and Equipment(Net PPE) was $1,458 Mil.
Depreciation, Depletion and Amortization(DDA) was $279 Mil.
Selling, General & Admin. Expense(SGA) was $2,118 Mil.
Total Current Liabilities was $1,488 Mil.
Long-Term Debt was $2,460 Mil.
Net Income was 46 + 52 + 34 + 31 = $163 Mil.
Non Operating Income was 1 + -390 + 1 + 0 = $-388 Mil.
Cash Flow from Operations was 121 + 172 + -25 + 165 = $433 Mil.
Accounts Receivable was $484 Mil.
Revenue was 5407 + 4387 + 4225 + 4041 = $18,060 Mil.
Gross Profit was 810 + 663 + 596 + 574 = $2,643 Mil.
Total Current Assets was $1,726 Mil.
Total Assets was $4,491 Mil.
Property, Plant and Equipment(Net PPE) was $1,433 Mil.
Depreciation, Depletion and Amortization(DDA) was $279 Mil.
Selling, General & Admin. Expense(SGA) was $2,196 Mil.
Total Current Liabilities was $1,803 Mil.
Long-Term Debt was $2,407 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)
=(466 / 17318) / (484 / 18060)
=0.02690842 / 0.02679956
=1.0041

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)
=(2643 / 18060) / (2553 / 17318)
=0.14634551 / 0.14741887
=0.9927

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 - (1691 + 1458) / 4373) / (1 - (1726 + 1433) / 4491)
=0.27989938 / 0.29659319
=0.9437

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
=17318 / 18060
=0.9589

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))
=(279 / (279 + 1433)) / (279 / (279 + 1458))
=0.16296729 / 0.16062176
=1.0146

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)
=(2118 / 17318) / (2196 / 18060)
=0.1223005 / 0.12159468
=1.0058

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)
=((2460 + 1488) / 4373) / ((2407 + 1803) / 4491)
=0.90281271 / 0.93743042
=0.9631

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
=(163 - -388 - 433) / 4373
=0.027

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 -2.40 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

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
DSRI 1.15760.84390.90841.02242.13490.67060.94731.05080.94140.9564
GMI 0.6680.94851.01091.00651.63050.97831.03820.92471.01930.9799
AQI 1.31651.09520.76141.02230.78272.04891.03720.52880.93471.0066
SGI 1.88311.17761.01170.9110.42751.00150.98581.00681.03850.9783
DEPI 1.44220.79510.96611.0272.35630.35170.81841.05291.03371.0338
SGAI 1.48311.04641.02660.99810.68240.97661.10740.84890.98431.0032
LVGI 1.30120.9721.13540.96341.0820.73151.20521.48680.97530.9653
TATA -0.0161-0.0541-0.2493-0.0658-0.1943-0.1732-0.21540.22090.060.0323
M-score -1.80-2.73-3.86-2.82-2.43-3.16-3.62-1.75-2.22-2.38

SUPERVALU Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
DSRI 1.050.86970.90120.95240.94140.92590.89330.90210.95641.0041
GMI 0.92030.97150.99621.01581.01930.98890.98050.97130.97990.9927
AQI 0.52881.00081.0040.9380.93470.9980.9951.05371.00660.9437
SGI 1.00751.00861.01371.02841.03851.04541.0411.02210.97830.9589
DEPI 1.05291.05861.07271.0631.03371.03331.01521.02071.03381.0146
SGAI 0.85270.80280.83070.86280.98431.03681.03730.99691.00321.0058
LVGI 1.48680.99961.00240.98360.97530.96580.96150.97370.96530.9631
TATA 0.22090.15690.11840.11660.060.05080.03620.020.03230.027
M-score -1.75-1.83-1.97-1.93-2.22-2.27-2.38-2.44-2.38-2.40
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