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Sysco Corp (NYSE:SYY)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

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

-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 -2.63.


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 * 0.9428+0.528 * 1.0012+0.404 * 0.7421+0.892 * 1.0465+0.115 * 0.9909
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0611+4.679 * -0.0502-0.327 * 1.2678
=-2.93

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $3,353 Mil.
Revenue was 12401.938 + 11746.659 + 12087.074 + 12445.081 = $48,681 Mil.
Gross Profit was 2220.164 + 2057.498 + 2085.137 + 2188.717 = $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.
Net Income was 73.026 + 176.955 + 157.979 + 278.813 = $687 Mil.
Non Operating Income was 25.034 + 8.577 + -2.207 + 2.188 = $34 Mil.
Cash Flow from Operations was 694.985 + 408.061 + 389.82 + 62.618 = $1,555 Mil.
Accounts Receivable was $3,399 Mil.
Revenue was 12286.992 + 11277.484 + 11237.969 + 11714.267 = $46,517 Mil.
Gross Profit was 2155.856 + 1994.741 + 1964.951 + 2065.487 = $8,181 Mil.
Total Current Assets was $6,682 Mil.
Total Assets was $13,141 Mil.
Property, Plant and Equipment(Net PPE) was $3,986 Mil.
Depreciation, Depletion and Amortization(DDA) was $548 Mil.
Selling, General & Admin. Expense(SGA) was $6,594 Mil.
Total Current Liabilities was $4,368 Mil.
Long-Term Debt was $2,357 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)
=(3353.381 / 48680.752) / (3398.713 / 46516.712)
=0.06888515 / 0.07306434
=0.9428

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)
=(2057.498 / 46516.712) / (2220.164 / 48680.752)
=0.17587303 / 0.17566524
=1.0012

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 - (11494.304 + 3982.143) / 17989.281) / (1 - (6681.972 + 3985.618) / 13141.113)
=0.13968507 / 0.18822782
=0.7421

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
=48680.752 / 46516.712
=1.0465

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))
=(547.776 / (547.776 + 3985.618)) / (553.021 / (553.021 + 3982.143))
=0.12083132 / 0.12194068
=0.9909

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)
=(7322.154 / 48680.752) / (6593.913 / 46516.712)
=0.15041169 / 0.14175363
=1.0611

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)
=((2271.825 + 9399.615) / 17989.281) / ((2357.33 + 4367.63) / 13141.113)
=0.64879969 / 0.51174965
=1.2678

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
=(686.773 - 33.592 - 1555.484) / 17989.281
=-0.0502

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 -2.93 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.04541.02391.02060.99170.98891.01941.01551.01460.93980.9428
GMI 1.00821.0061.01451.02371.02421.02381.01471.00991.0111.0012
AQI 1.03841.09411.07481.02791.04380.96290.96860.7210.7170.7421
SGI 1.05011.04791.05031.04711.0451.04741.0491.05751.05971.0465
DEPI 0.86590.84940.85530.88690.92220.94460.95580.94990.95250.9909
SGAI 1.04251.04541.02891.01320.99580.99331.00641.01461.01351.0611
LVGI 0.95460.97521.00741.00021.05511.02941.03091.27111.24691.2678
TATA -0.0194-0.0423-0.038-0.0479-0.0498-0.0436-0.0346-0.0344-0.0363-0.0502
M-score -2.47-2.59-2.58-2.66-2.68-2.64-2.61-2.78-2.85-2.93
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