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SUPERVALU Inc (NYSE:SVU)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

SVU' s 10-Year Beneish M-Score Range
Min: -3.86   Max: -0.94
Current: -2.74

-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 -2.82.


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 * 0.9366+0.528 * 0.9912+0.404 * 0.9614+0.892 * 1.0439+0.115 * 1.0337
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0165+4.679 * -0.0491-0.327 * 0.9759
=-2.74

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

This Year (Feb15) TTM:Last Year (Feb14) TTM:
Accounts Receivable was $482 Mil.
Revenue was 4364 + 4204 + 4018 + 5234 = $17,820 Mil.
Gross Profit was 661 + 593 + 572 + 752 = $2,578 Mil.
Total Current Assets was $1,700 Mil.
Total Assets was $4,485 Mil.
Property, Plant and Equipment(Net PPE) was $1,470 Mil.
Depreciation, Depletion and Amortization(DDA) was $285 Mil.
Selling, General & Admin. Expense(SGA) was $2,154 Mil.
Total Current Liabilities was $1,533 Mil.
Long-Term Debt was $2,693 Mil.
Net Income was 39 + 79 + 31 + 43 = $192 Mil.
Non Operating Income was 1 + 1 + 1 + 1 = $4 Mil.
Cash Flow from Operations was 302 + -54 + 103 + 57 = $408 Mil.
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.



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)
=(482 / 17820) / (493 / 17071)
=0.02704826 / 0.02887939
=0.9366

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)
=(593 / 17071) / (661 / 17820)
=0.14340109 / 0.14466891
=0.9912

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 - (1700 + 1470) / 4485) / (1 - (1543 + 1497) / 4374)
=0.29319955 / 0.304984
=0.9614

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
=17820 / 17071
=1.0439

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))
=(302 / (302 + 1497)) / (285 / (285 + 1470))
=0.16787104 / 0.16239316
=1.0337

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)
=(2154 / 17820) / (2030 / 17071)
=0.12087542 / 0.11891512
=1.0165

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)
=((2693 + 1533) / 4485) / ((2732 + 1491) / 4374)
=0.94225195 / 0.96547782
=0.9759

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
=(192 - 4 - 408) / 4485
=-0.0491

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 -2.74 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 0.93081.15760.84390.90841.02240.98731.02151.34791.05440.9412
GMI 1.00760.6680.94851.01091.00651.00621.00871.65550.90911.0202
AQI 0.98851.31651.09520.76141.02230.78270.75382.8190.52880.9614
SGI 1.01641.88311.17761.01170.9110.92460.96180.47361.00341.0388
DEPI 0.89071.44220.79510.96611.0270.97581.0070.69021.05291.0337
SGAI 1.08011.48311.04641.02660.99811.02230.9830.72650.86170.9809
LVGI 0.96311.30120.9721.13540.96341.0821.06530.82751.48680.9759
TATA -0.06220.0096-0.0205-0.2493-0.0658-0.1943-0.1739-0.21420.0373-0.0491
M-score -2.83-1.68-2.57-3.86-2.82-3.59-3.42-2.48-2.62-2.72

SUPERVALU Inc Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
DSRI 1.071.34792.43143.57087.13031.05960.59670.40190.20670.9366
GMI 1.00911.65553.7964-3.6024-0.51080.93570.4023-0.423-2.9720.9912
AQI 0.93762.8191.46571.42141.41180.52881.00081.0040.9380.9614
SGI 0.8920.47360.32790.21520.10560.99851.472.27324.73971.0439
DEPI 1.03550.69021.1933.6946-2.33541.05290.61520.2067-0.33811.0337
SGAI 1.02690.72650.4153-0.1727-1.79040.83151.4308-3.3955-0.33591.0165
LVGI 1.02330.82751.23261.21021.2061.48680.99961.00240.98360.9759
TATA -0.1158-0.2142-0.4059-0.2999-0.2798-0.0766-0.1433-0.1964-0.1824-0.0491
M-score -3.08-2.48-1.95-4.040.45-3.13-3.54-2.90-2.77-2.74
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