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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-3.13 (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 -3.23 suggests that the company is not a manipulator.

SVU' s 10-Year Beneish M-Score Range
Min: -3.86   Max: -0.94
Current: -3.13

-3.86
-0.94

During the past 13 years, the highest Beneish M-Score of SUPERVALU Inc was -0.94. The lowest was -3.86. And the median was -2.83.


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 * 0.8763+0.528 * 0.97+0.404 * 1.0008+0.892 * 1.001+0.115 * 1.0586
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8021+4.679 * -0.1422-0.327 * 0.9996
=-3.23

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

This Year (May14) TTM:Last Year (May13) TTM:
Accounts Receivable was $500 Mil.
Revenue was 5234 + 3953 + 4012 + 3948 = $17,147 Mil.
Gross Profit was 752 + 590 + 569 + 577 = $2,488 Mil.
Total Current Assets was $1,613 Mil.
Total Assets was $4,354 Mil.
Property, Plant and Equipment(Net PPE) was $1,447 Mil.
Depreciation, Depletion and Amortization(DDA) was $293 Mil.
Selling, General & Admin. Expense(SGA) was $2,017 Mil.
Total Current Liabilities was $1,507 Mil.
Long-Term Debt was $2,719 Mil.
Net Income was 43 + 26 + 31 + 40 = $140 Mil.
Non Operating Income was 1 + 704 + -104 + -102 = $499 Mil.
Cash Flow from Operations was 57 + 292 + -42 + -47 = $260 Mil.
Accounts Receivable was $570 Mil.
Revenue was 5241 + 3899 + 4051 + 3939 = $17,130 Mil.
Gross Profit was 795 + 557 + 530 + 529 = $2,411 Mil.
Total Current Assets was $1,680 Mil.
Total Assets was $4,691 Mil.
Property, Plant and Equipment(Net PPE) was $1,618 Mil.
Depreciation, Depletion and Amortization(DDA) was $351 Mil.
Selling, General & Admin. Expense(SGA) was $2,512 Mil.
Total Current Liabilities was $1,678 Mil.
Long-Term Debt was $2,877 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)
=(500 / 17147) / (570 / 17130)
=0.02915962 / 0.03327496
=0.8763

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)
=(590 / 17130) / (752 / 17147)
=0.14074723 / 0.14509827
=0.97

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 - (1613 + 1447) / 4354) / (1 - (1680 + 1618) / 4691)
=0.29719798 / 0.29695161
=1.0008

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
=17147 / 17130
=1.001

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))
=(351 / (351 + 1618)) / (293 / (293 + 1447))
=0.17826308 / 0.1683908
=1.0586

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)
=(2017 / 17147) / (2512 / 17130)
=0.11762991 / 0.14664332
=0.8021

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)
=((2719 + 1507) / 4354) / ((2877 + 1678) / 4691)
=0.97060175 / 0.97100831
=0.9996

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
=(140 - 499 - 260) / 4354
=-0.1422

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 -3.23 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

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
DSRI 0.66641.65432.695613.81130.94530.53330.31260.11871.05620.8763
GMI 0.96142.5062-1.4849-0.30251.02490.4079-0.686-4.99310.91930.97
AQI 2.03930.7430.7640.93761.03721.46571.42141.41180.52881.0008
SGI 1.02430.59130.36420.06910.98791.49482.4596.34741.00161.001
DEPI 0.34832.00654.9012-18.83640.81840.16520.0683-0.04081.05291.0586
SGAI 0.98470.4564-0.4247-2.86551.12712.3471-2.4766-0.25040.85190.8021
LVGI 0.73361.07261.08781.02331.20521.23261.21021.2061.48680.9996
TATA -0.1732-0.1769-0.1675-0.0925-0.2275-0.4383-0.3626-0.3696-0.0768-0.1422
M-score -3.16-2.19-3.015.71-3.69-5.05-3.81-3.22-3.15-3.23
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