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Sysco Corp (NYSE:SYY)
Beneish M-Score
-2.53 (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 -2.69 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: -2.53

-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 * 0.9745+0.528 * 0.9787+0.404 * 1.1934+0.892 * 1.0346+0.115 * 0.836
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9491+4.679 * -0.0522-0.327 * 1.085
=-2.69

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $3,381 Mil.
Revenue was $50,367 Mil.
Gross Profit was $9,040 Mil.
Total Current Assets was $10,054 Mil.
Total Assets was $16,722 Mil.
Property, Plant and Equipment(Net PPE) was $3,880 Mil.
Depreciation, Depletion and Amortization(DDA) was $663 Mil.
Selling, General & Admin. Expense(SGA) was $7,190 Mil.
Total Current Liabilities was $4,434 Mil.
Long-Term Debt was $7,337 Mil.
Net Income was $950 Mil.
Non Operating Income was $-111 Mil.
Cash Flow from Operations was $1,933 Mil.
Accounts Receivable was $3,353 Mil.
Revenue was $48,681 Mil.
Gross Profit was $8,552 Mil.
Total Current Assets was $11,494 Mil.
Total Assets was $17,989 Mil.
Property, Plant and Equipment(Net PPE) was $3,982 Mil.
Depreciation, Depletion and Amortization(DDA) was $553 Mil.
Selling, General & Admin. Expense(SGA) was $7,322 Mil.
Total Current Liabilities was $9,400 Mil.
Long-Term Debt was $2,272 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)
=(3380.971 / 50366.919) / (3353.381 / 48680.752)
=0.06712682 / 0.06888515
=0.9745

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)
=(8551.516 / 48680.752) / (9040.472 / 50366.919)
=0.17566524 / 0.17949226
=0.9787

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 - (10053.899 + 3880.442) / 16721.804) / (1 - (11494.304 + 3982.143) / 17989.281)
=0.16669631 / 0.13968507
=1.1934

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
=50366.919 / 48680.752
=1.0346

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))
=(553.021 / (553.021 + 3982.143)) / (662.71 / (662.71 + 3880.442))
=0.12194068 / 0.14587009
=0.836

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)
=(7189.972 / 50366.919) / (7322.154 / 48680.752)
=0.14275187 / 0.15041169
=0.9491

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)
=((7336.93 + 4434.456) / 16721.804) / ((2271.825 + 9399.615) / 17989.281)
=0.70395431 / 0.64879969
=1.085

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
=(949.622 - -111.347 - 1933.142) / 16721.804
=-0.0522

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 -2.69 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 local exchange's currency.

Sysco Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 0.97880.97410.92291.04880.94971.02391.01940.94280.9745
GMI 0.99991.00571.00431.02641.02451.01941.02381.00120.9787
AQI 0.94230.89760.96850.95340.95051.09410.96290.74211.1934
SGI 1.0741.07080.98221.05581.07781.04791.04741.04651.0346
DEPI 1.04451.02961.0041.05521.06070.85310.94050.99090.836
SGAI 0.98020.983100.99271.00011.02710.99331.06110.9491
LVGI 1.00690.99911.0070.96750.99140.97521.02941.26781.085
TATA -0.0441-0.0509-0.05280.0041-0.0238-0.0423-0.0436-0.0502-0.0522
M-score -2.66-2.71-2.65-2.35-2.57-2.58-2.64-2.93-2.69
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