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Sysco Corp (NYSE:SYY)
Beneish M-Score
-2.67 (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.

Sysco Corp has a M-score of -2.67 suggests that the company is not a manipulator.

SYY' s 10-Year Beneish M-Score Range
Min: -2.93   Max: -2.09
Current: -2.67

-2.93
-2.09

During the past 13 years, the highest Beneish M-Score of Sysco Corp was -2.09. The lowest was -2.93. And the median was -2.60.


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 Sysco Corp 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 * 0.9889+0.528 * 1.0408+0.404 * 1.0453+0.892 * 1.045+0.115 * 0.9222
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.976+4.679 * -0.0498-0.327 * 1.0744
=-2.67

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $3,511 Mil.
Revenue was 11277.484 + 11237.969 + 11714.267 + 11601.056 = $45,831 Mil.
Gross Profit was 1994.741 + 1964.951 + 2065.487 + 1943.204 = $7,968 Mil.
Total Current Assets was $6,639 Mil.
Total Assets was $13,138 Mil.
Property, Plant and Equipment(Net PPE) was $3,956 Mil.
Depreciation, Depletion and Amortization(DDA) was $542 Mil.
Selling, General & Admin. Expense(SGA) was $6,346 Mil.
Total Current Liabilities was $3,944 Mil.
Long-Term Debt was $2,986 Mil.
Net Income was 180.937 + 210.835 + 285.59 + 283.043 = $960 Mil.
Non Operating Income was -3.718 + 4.211 + 4.534 + 9.832 = $15 Mil.
Cash Flow from Operations was 389.9 + 288.935 + 169.229 + 752.186 = $1,600 Mil.
Accounts Receivable was $3,397 Mil.
Revenue was 10926.371 + 10796.89 + 11086.916 + 11045.382 = $43,856 Mil.
Gross Profit was 1942.482 + 1952.11 + 2029.795 + 2011.711 = $7,936 Mil.
Total Current Assets was $6,376 Mil.
Total Assets was $12,657 Mil.
Property, Plant and Equipment(Net PPE) was $3,938 Mil.
Depreciation, Depletion and Amortization(DDA) was $492 Mil.
Selling, General & Admin. Expense(SGA) was $6,222 Mil.
Total Current Liabilities was $3,657 Mil.
Long-Term Debt was $2,557 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)
=(3510.518 / 45830.776) / (3396.85 / 43855.559)
=0.07659739 / 0.0774554
=0.9889

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)
=(1964.951 / 43855.559) / (1994.741 / 45830.776)
=0.18095991 / 0.17386533
=1.0408

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 - (6639.475 + 3956.209) / 13138.264) / (1 - (6375.582 + 3938.277) / 12657.21)
=0.19352481 / 0.18513962
=1.0453

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
=45830.776 / 43855.559
=1.045

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))
=(491.975 / (491.975 + 3938.277)) / (541.622 / (541.622 + 3956.209))
=0.11104899 / 0.12041849
=0.9222

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)
=(6345.94 / 45830.776) / (6221.999 / 43855.559)
=0.1384646 / 0.14187481
=0.976

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)
=((2986.163 + 3944.016) / 13138.264) / ((2557.314 + 3656.904) / 12657.21)
=0.52748057 / 0.4909627
=1.0744

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
=(960.405 - 14.859 - 1600.25) / 13138.264
=-0.0498

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.

Sysco Corp has a M-score of -2.67 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.

Sysco Corp Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 0.97071.01071.00920.97880.97411.04880.94971.0239
GMI 1.02071.01270.99060.99991.00571.02641.03821.0225
AQI 1.16811.03650.97910.94230.89760.95340.95051.0953
SGI 1.12221.03231.07751.0741.07081.05581.07781.0479
DEPI 1.07480.94450.99781.04451.02961.05521.06070.8494
SGAI 0.96190.98111.06130.980200.99270.98271.0241
LVGI 0.97510.96131.01111.00690.99910.96750.99140.9897
TATA -0.0377-0.0292-0.0309-0.0441-0.05090.0041-0.0238-0.0424
M-score -2.47-2.55-2.57-2.66-2.54-2.35-2.56-2.58

Sysco Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.02950.99380.94970.9771.03791.04541.02391.02060.99170.9889
GMI 1.03551.04781.03821.03171.02051.00821.02251.03111.04041.0408
AQI 0.89270.93340.95050.96081.04311.03841.09531.07591.02931.0453
SGI 1.06741.06411.07781.06781.05891.05011.04791.05031.04711.045
DEPI 1.08161.09891.06070.99940.92950.86590.84940.85530.88690.9222
SGAI 0.98230.96270.98270.99331.01021.04251.02411.00810.99280.976
LVGI 0.9920.9710.99140.97540.9780.95460.98971.02151.01871.0744
TATA -0.0187-0.0164-0.0238-0.0212-0.0147-0.0194-0.0424-0.0381-0.048-0.0498
M-score -2.49-2.48-2.56-2.53-2.44-2.47-2.58-2.57-2.65-2.67
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