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Sysco Corp (NYSE:SYY)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

SYY' s Beneish M-Score Range Over the Past 10 Years
Min: -10.23   Max: -2.09
Current: -2.68

-10.23
-2.09

During the past 13 years, the highest Beneish M-Score of Sysco Corp was -2.09. The lowest was -10.23. And the median was -2.61.


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 * 0.9924+0.528 * 0.9802+0.404 * 1.3649+0.892 * 1.0114+0.115 * 0.911
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0426+4.679 * -0.0698-0.327 * 0.9738
=-2.68

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $3,509 Mil.
Revenue was 12002.791 + 12153.626 + 12562.611 + 12401.938 = $49,121 Mil.
Gross Profit was 2142.825 + 2156.814 + 2237.995 + 2220.164 = $8,758 Mil.
Total Current Assets was $6,960 Mil.
Total Assets was $13,351 Mil.
Property, Plant and Equipment(Net PPE) was $3,900 Mil.
Depreciation, Depletion and Amortization(DDA) was $602 Mil.
Selling, General & Admin. Expense(SGA) was $7,333 Mil.
Total Current Liabilities was $4,112 Mil.
Long-Term Debt was $4,275 Mil.
Net Income was 217.136 + 272.399 + 244.42 + 73.026 = $807 Mil.
Non Operating Income was 6.952 + 7.764 + 15.24 + 25.034 = $55 Mil.
Cash Flow from Operations was 520.1 + 730.363 + -261.482 + 694.985 = $1,684 Mil.
Accounts Receivable was $3,496 Mil.
Revenue was 11746.659 + 12087.074 + 12445.081 + 12286.992 = $48,566 Mil.
Gross Profit was 2057.498 + 2085.137 + 2188.717 + 2155.856 = $8,487 Mil.
Total Current Assets was $11,521 Mil.
Total Assets was $17,944 Mil.
Property, Plant and Equipment(Net PPE) was $3,970 Mil.
Depreciation, Depletion and Amortization(DDA) was $551 Mil.
Selling, General & Admin. Expense(SGA) was $6,954 Mil.
Total Current Liabilities was $4,340 Mil.
Long-Term Debt was $7,236 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)
=(3509.438 / 49120.966) / (3496.254 / 48565.806)
=0.07144481 / 0.07199003
=0.9924

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)
=(8487.208 / 48565.806) / (8757.798 / 49120.966)
=0.17475686 / 0.17829043
=0.9802

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 - (6960.033 + 3900.47) / 13351.094) / (1 - (11521.307 + 3970.261) / 17944.145)
=0.18654584 / 0.1366784
=1.3649

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
=49120.966 / 48565.806
=1.0114

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))
=(550.546 / (550.546 + 3970.261)) / (601.843 / (601.843 + 3900.47))
=0.12178047 / 0.13367418
=0.911

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)
=(7333.128 / 49120.966) / (6954.319 / 48565.806)
=0.14928713 / 0.14319373
=1.0426

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)
=((4274.884 + 4112.072) / 13351.094) / ((7235.941 + 4339.856) / 17944.145)
=0.62818493 / 0.64510162
=0.9738

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
=(806.981 - 54.99 - 1683.966) / 13351.094
=-0.0698

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 -2.68 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.00920.97880.97410.92291.04880.94971.02391.01940.9428
GMI 0.99060.99991.00571.00431.0251.02791.02251.00731.0012
AQI 0.97910.94230.89760.96850.95340.95051.09410.96290.7421
SGI 1.07751.0741.07080.98221.05581.07781.04791.04741.0465
DEPI 0.99781.04451.02961.0041.05521.06070.84940.93221.0041
SGAI 1.06130.98020.983100.97930.99611.02411.01391.0611
LVGI 1.01111.00690.99911.0070.96750.99140.97521.02941.2678
TATA -0.0309-0.0441-0.0509-0.05330.0041-0.0238-0.0423-0.0436-0.0502
M-score -2.57-2.66-2.71-2.66-2.35-2.56-2.58-2.65-2.93

Sysco Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.99170.98891.01941.01551.01460.93980.94280.93750.93510.9924
GMI 1.03711.03751.02381.01471.00991.0111.00120.99720.98690.9802
AQI 1.02791.04380.96290.96120.7110.70720.74210.96231.31651.3649
SGI 1.04711.0451.04741.0491.05751.05971.04651.03281.0161.0114
DEPI 0.89050.92590.94050.95760.97620.98480.99090.98740.97230.911
SGAI 0.99630.97960.99331.00641.01461.01351.06111.05651.04311.0426
LVGI 1.00021.05511.02941.02921.26941.24541.26780.990.96980.9738
TATA -0.0479-0.0498-0.0436-0.0347-0.0345-0.0364-0.0502-0.0468-0.0658-0.0698
M-score -2.65-2.67-2.64-2.61-2.78-2.85-2.93-2.75-2.71-2.68
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