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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 -3.13 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 * 1.0613+0.528 * 0.9459+0.404 * 0.5288+0.892 * 0.9968+0.115 * 1.0529
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8232+4.679 * -0.0766-0.327 * 1.4868
=-3.13

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

This Year (Feb14) TTM:Last Year (Feb13) TTM:
Accounts Receivable was $493 Mil.
Revenue was 3953 + 4012 + 3948 + 5158 = $17,071 Mil.
Gross Profit was 590 + 569 + 577 + 712 = $2,448 Mil.
Total Current Assets was $1,543 Mil.
Total Assets was $4,374 Mil.
Property, Plant and Equipment(Net PPE) was $1,497 Mil.
Depreciation, Depletion and Amortization(DDA) was $302 Mil.
Selling, General & Admin. Expense(SGA) was $2,030 Mil.
Total Current Liabilities was $1,491 Mil.
Long-Term Debt was $2,732 Mil.
Net Income was 26 + 31 + 40 + 85 = $182 Mil.
Non Operating Income was 704 + -104 + -102 + 0 = $498 Mil.
Cash Flow from Operations was 292 + -42 + -42 + -189 = $19 Mil.
Accounts Receivable was $466 Mil.
Revenue was 3899 + 4051 + 3939 + 5237 = $17,126 Mil.
Gross Profit was 557 + 530 + 529 + 707 = $2,323 Mil.
Total Current Assets was $2,970 Mil.
Total Assets was $11,034 Mil.
Property, Plant and Equipment(Net PPE) was $1,700 Mil.
Depreciation, Depletion and Amortization(DDA) was $365 Mil.
Selling, General & Admin. Expense(SGA) was $2,474 Mil.
Total Current Liabilities was $4,350 Mil.
Long-Term Debt was $2,815 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)
=(493 / 17071) / (466 / 17126)
=0.02887939 / 0.02721009
=1.0613

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)
=(569 / 17126) / (590 / 17071)
=0.13564171 / 0.14340109
=0.9459

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 - (1543 + 1497) / 4374) / (1 - (2970 + 1700) / 11034)
=0.304984 / 0.57676273
=0.5288

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
=17071 / 17126
=0.9968

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))
=(365 / (365 + 1700)) / (302 / (302 + 1497))
=0.17675545 / 0.16787104
=1.0529

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)
=(2030 / 17071) / (2474 / 17126)
=0.11891512 / 0.14445872
=0.8232

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)
=((2732 + 1491) / 4374) / ((2815 + 4350) / 11034)
=0.96547782 / 0.64935653
=1.4868

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
=(182 - 498 - 19) / 4374
=-0.0766

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 -3.13 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

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
DSRI 0.44770.66641.65432.695613.81130.94530.53590.31410.11921.0613
GMI 0.62680.96142.5062-1.4849-0.30251.02490.4204-0.7065-5.13960.9459
AQI 0.79942.03930.7430.7640.93761.03721.46571.42141.41180.5288
SGI 2.24591.02430.59130.36420.06910.98791.48752.44716.31660.9968
DEPI 0.38190.34832.00654.9012-18.83640.81840.16520.0683-0.04081.0529
SGAI 1.46340.98470.4564-0.4247-2.86551.12712.2825-2.4059-0.24310.8232
LVGI 1.05780.73361.07261.08781.02331.20521.23261.21021.2061.4868
TATA -0.1021-0.1732-0.1769-0.1675-0.0925-0.2275-0.437-0.3624-0.3693-0.0766
M-score -2.80-3.16-2.19-3.015.71-3.69-5.03-3.84-3.32-3.13
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