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Sysco Corp (NYSE:SYY)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

SYY' s 10-Year Beneish M-Score Range
Min: -2.93   Max: -2.09
Current: -2.78

-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 * 1.0146+0.528 * 1.0099+0.404 * 0.721+0.892 * 1.0575+0.115 * 0.938
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0146+4.679 * -0.0344-0.327 * 1.2711
=-2.78

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $3,530 Mil.
Revenue was 12087.074 + 12445.081 + 12286.992 + 11277.484 = $48,097 Mil.
Gross Profit was 2085.137 + 2188.717 + 2155.856 + 1994.741 = $8,424 Mil.
Total Current Assets was $11,457 Mil.
Total Assets was $17,970 Mil.
Property, Plant and Equipment(Net PPE) was $4,003 Mil.
Depreciation, Depletion and Amortization(DDA) was $580 Mil.
Selling, General & Admin. Expense(SGA) was $6,886 Mil.
Total Current Liabilities was $4,286 Mil.
Long-Term Debt was $7,248 Mil.
Net Income was 157.979 + 278.813 + 254.171 + 180.937 = $872 Mil.
Non Operating Income was -2.207 + 2.188 + 7.216 + -3.718 = $3 Mil.
Cash Flow from Operations was 389.82 + 62.618 + 644.751 + 389.9 = $1,487 Mil.
Accounts Receivable was $3,290 Mil.
Revenue was 11237.969 + 11714.267 + 11601.056 + 10926.371 = $45,480 Mil.
Gross Profit was 1964.951 + 2065.487 + 2072.22 + 1942.482 = $8,045 Mil.
Total Current Assets was $6,539 Mil.
Total Assets was $13,031 Mil.
Property, Plant and Equipment(Net PPE) was $3,967 Mil.
Depreciation, Depletion and Amortization(DDA) was $534 Mil.
Selling, General & Admin. Expense(SGA) was $6,418 Mil.
Total Current Liabilities was $3,637 Mil.
Long-Term Debt was $2,944 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)
=(3529.997 / 48096.631) / (3289.93 / 45479.663)
=0.07339385 / 0.07233849
=1.0146

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)
=(2188.717 / 45479.663) / (2085.137 / 48096.631)
=0.17689533 / 0.17515678
=1.0099

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 - (11456.904 + 4002.932) / 17970.47) / (1 - (6539.243 + 3967.176) / 13031.412)
=0.13970887 / 0.19376204
=0.721

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
=48096.631 / 45479.663
=1.0575

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))
=(534.102 / (534.102 + 3967.176)) / (579.714 / (579.714 + 4002.932))
=0.11865564 / 0.12650203
=0.938

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)
=(6886.245 / 48096.631) / (6418.12 / 45479.663)
=0.1431752 / 0.14112066
=1.0146

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)
=((7248.457 + 4286.409) / 17970.47) / ((2944.083 + 3636.744) / 13031.412)
=0.64187893 / 0.50499723
=1.2711

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
=(871.9 - 3.479 - 1487.089) / 17970.47
=-0.0344

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 -2.78 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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 1.01071.00920.97880.97411.04880.94971.02391.0194
GMI 1.01270.99060.99991.00571.02641.03821.0061.0238
AQI 1.03650.97910.94230.89760.95340.95051.09410.9713
SGI 1.03231.07751.0741.07081.05581.07781.04791.0474
DEPI 0.94450.99781.04451.02961.05521.06070.84940.9322
SGAI 0.98111.06130.980200.99270.98271.04540.9933
LVGI 0.96131.01111.00690.99910.96750.99140.97521.0314
TATA -0.0292-0.0309-0.0441-0.05090.0041-0.0238-0.0423-0.0436
M-score -2.55-2.57-2.66-2.54-2.35-2.56-2.59-2.64

Sysco Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.9771.03791.04541.02391.02060.99170.98891.01941.01551.0146
GMI 1.03171.02051.00821.0061.01451.02371.02421.02381.01471.0099
AQI 0.96081.04311.03841.09411.07481.02791.04530.97130.96860.721
SGI 1.06781.05891.05011.04791.05031.04711.0451.04741.0491.0575
DEPI 0.99940.92950.86590.84940.85530.88690.92220.93220.94340.938
SGAI 0.99331.01021.04251.04541.02891.01320.99580.99331.00641.0146
LVGI 0.97540.9780.95460.97521.00741.00021.07441.03141.03091.2711
TATA -0.0212-0.0147-0.0194-0.0423-0.038-0.0479-0.0498-0.0436-0.0346-0.0344
M-score -2.53-2.44-2.47-2.59-2.58-2.66-2.68-2.64-2.61-2.78
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