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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

SVU' s Beneish M-Score Range Over the Past 10 Years
Min: -5.05   Max: 0.35
Current: -2.93

-5.05
0.35

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was 0.35. 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 * 0.9019+0.528 * 0.9713+0.404 * 1.0537+0.892 * 1.0223+0.115 * 1.0207
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9967+4.679 * -0.0846-0.327 * 0.9737
=-2.93

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

This Year (Nov15) TTM:Last Year (Nov14) TTM:
Accounts Receivable was $485 Mil.
Revenue was 4114 + 4062 + 5407 + 4290 = $17,873 Mil.
Gross Profit was 601 + 583 + 810 + 653 = $2,647 Mil.
Total Current Assets was $1,867 Mil.
Total Assets was $4,643 Mil.
Property, Plant and Equipment(Net PPE) was $1,458 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $2,149 Mil.
Total Current Liabilities was $1,786 Mil.
Long-Term Debt was $2,490 Mil.
Net Income was 34 + 31 + 61 + 39 = $165 Mil.
Non Operating Income was 1 + 0 + 2 + 1 = $4 Mil.
Cash Flow from Operations was -25 + 165 + 112 + 302 = $554 Mil.
Accounts Receivable was $526 Mil.
Revenue was 4225 + 4041 + 5264 + 3953 = $17,483 Mil.
Gross Profit was 596 + 574 + 755 + 590 = $2,515 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 $2,109 Mil.
Total Current Liabilities was $1,964 Mil.
Long-Term Debt was $2,839 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)
=(485 / 17873) / (526 / 17483)
=0.0271359 / 0.03008637
=0.9019

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)
=(583 / 17483) / (601 / 17873)
=0.14385403 / 0.14810049
=0.9713

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 - (1867 + 1458) / 4643) / (1 - (2241 + 1469) / 5078)
=0.28386819 / 0.2693974
=1.0537

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
=17873 / 17483
=1.0223

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))
=(286 / (286 + 1469)) / (277 / (277 + 1458))
=0.16296296 / 0.15965418
=1.0207

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)
=(2149 / 17873) / (2109 / 17483)
=0.12023723 / 0.12063147
=0.9967

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)
=((2490 + 1786) / 4643) / ((2839 + 1964) / 5078)
=0.92095628 / 0.94584482
=0.9737

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
=(165 - 4 - 554) / 4643
=-0.0846

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 -2.93 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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
DSRI 0.93081.15760.84390.90841.02242.13490.67240.94461.05710.9411
GMI 1.00760.6680.94851.01091.00651.63050.99461.020.92411.0195
AQI 0.98851.31651.09520.76141.02230.78272.04891.03720.52880.9614
SGI 1.01641.88311.17761.01170.9110.42750.99880.98861.00081.0389
DEPI 0.89071.44220.79510.96611.0272.35630.35170.81841.05291.0337
SGAI 1.08011.48311.04641.02660.99810.68240.95891.13210.84650.984
LVGI 0.96311.30120.9721.13540.96341.0820.73151.20521.48680.9759
TATA -0.06220.0096-0.0205-0.2493-0.0658-0.1943-0.1732-0.21420.0348-0.0491
M-score -2.83-1.68-2.57-3.86-2.82-2.43-3.15-3.63-2.62-2.72

SUPERVALU Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
DSRI 0.31260.11871.05630.87480.90650.9580.94110.92560.8930.9019
GMI -0.6862-4.99480.91960.97090.99561.01511.01950.9890.98060.9713
AQI 1.42141.41180.52881.00081.0040.9380.96140.9980.9951.0537
SGI 2.45886.34711.00161.00271.00771.02251.03891.04581.04131.0223
DEPI 0.0683-0.04081.05291.05861.07271.0631.03371.03331.01521.0207
SGAI -2.4758-0.25020.85030.80040.82810.86020.9841.03681.03730.9967
LVGI 1.21021.2061.48680.99961.00240.98360.97590.96580.96150.9737
TATA -0.3858-0.41540.0348-0.0301-0.0631-0.0437-0.0491-0.0574-0.0692-0.0846
M-score -3.91-3.44-2.62-2.71-2.82-2.68-2.72-2.77-2.87-2.93
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