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Sysco Corp (NYSE:SYY)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

SYY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.93   Max: -2.09
Current: -2.75

-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 -2.61.


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 * 0.9375+0.528 * 0.9972+0.404 * 0.9623+0.892 * 1.0328+0.115 * 0.9874
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0565+4.679 * -0.0468-0.327 * 0.99
=-2.75

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $3,531 Mil.
Revenue was 12562.611 + 12401.938 + 11746.659 + 12087.074 = $48,798 Mil.
Gross Profit was 2237.995 + 2220.164 + 2057.498 + 2085.137 = $8,601 Mil.
Total Current Assets was $7,028 Mil.
Total Assets was $13,372 Mil.
Property, Plant and Equipment(Net PPE) was $3,961 Mil.
Depreciation, Depletion and Amortization(DDA) was $555 Mil.
Selling, General & Admin. Expense(SGA) was $7,344 Mil.
Total Current Liabilities was $3,971 Mil.
Long-Term Debt was $3,005 Mil.
Net Income was 244.42 + 73.026 + 176.955 + 157.979 = $652 Mil.
Non Operating Income was 15.24 + 25.034 + 8.577 + -2.207 = $47 Mil.
Cash Flow from Operations was -261.482 + 694.985 + 408.061 + 389.82 = $1,231 Mil.
Accounts Receivable was $3,647 Mil.
Revenue was 12445.081 + 12286.992 + 11277.484 + 11237.969 = $47,248 Mil.
Gross Profit was 2188.717 + 2155.856 + 1994.741 + 1964.951 = $8,304 Mil.
Total Current Assets was $7,108 Mil.
Total Assets was $13,594 Mil.
Property, Plant and Equipment(Net PPE) was $3,969 Mil.
Depreciation, Depletion and Amortization(DDA) was $548 Mil.
Selling, General & Admin. Expense(SGA) was $6,730 Mil.
Total Current Liabilities was $4,536 Mil.
Long-Term Debt was $2,627 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)
=(3531.105 / 48798.282) / (3646.817 / 47247.526)
=0.07236126 / 0.07718535
=0.9375

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)
=(2220.164 / 47247.526) / (2237.995 / 48798.282)
=0.17576084 / 0.17625198
=0.9972

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 - (7027.96 + 3961.299) / 13371.551) / (1 - (7108.403 + 3968.713) / 13594.033)
=0.17816123 / 0.18514866
=0.9623

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
=48798.282 / 47247.526
=1.0328

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))
=(548.028 / (548.028 + 3968.713)) / (554.986 / (554.986 + 3961.299))
=0.12133262 / 0.12288551
=0.9874

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)
=(7343.571 / 48798.282) / (6729.728 / 47247.526)
=0.15048831 / 0.14243556
=1.0565

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)
=((3004.618 + 3970.816) / 13371.551) / ((2626.61 + 4536.489) / 13594.033)
=0.5216623 / 0.52692965
=0.99

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
=(652.38 - 46.644 - 1231.384) / 13371.551
=-0.0468

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 -2.75 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 1.00920.97880.97411.04880.94971.02391.01940.9428
GMI 0.99060.99991.00571.02641.02451.01941.02381.0012
AQI 0.97910.94230.89760.95340.95051.09410.96290.7421
SGI 1.07751.0741.07081.05581.07781.04791.04741.0465
DEPI 0.99781.04451.02961.05521.06070.85310.94050.9909
SGAI 1.06130.980200.99271.00011.02710.99331.0611
LVGI 1.01111.00690.99910.96750.99140.97521.02941.2678
TATA -0.0309-0.0441-0.05090.0041-0.0238-0.0423-0.0436-0.0502
M-score -2.57-2.66-2.54-2.35-2.57-2.58-2.64-2.93

Sysco Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.02060.99170.98891.01941.01551.01460.93980.94280.93750.9351
GMI 1.0281.03711.03751.02381.01471.00991.0111.00120.99720.9869
AQI 1.07481.02791.04380.96290.96120.7110.7170.74210.96231.3165
SGI 1.05031.04711.0451.04741.0491.05751.05971.04651.03281.016
DEPI 0.85890.89050.92590.94050.95760.97620.94860.99090.98740.9723
SGAI 1.01130.99630.97960.99331.00641.01461.01351.06111.05651.0431
LVGI 1.00741.00021.05511.02941.02921.26941.24691.26780.990.9698
TATA -0.038-0.0479-0.0498-0.0436-0.0347-0.0345-0.0363-0.0502-0.0468-0.0658
M-score -2.57-2.65-2.67-2.64-2.61-2.78-2.85-2.93-2.75-2.71
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