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Village Super Market Inc (NAS:VLGEA)
Beneish M-Score
-3.06 (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.

Village Super Market Inc has a M-score of -3.06 suggests that the company is not a manipulator.

VLGEA' s 10-Year Beneish M-Score Range
Min: -3.68   Max: 22.8
Current: -3.06

-3.68
22.8

During the past 13 years, the highest Beneish M-Score of Village Super Market Inc was 22.80. The lowest was -3.68. And the median was -2.64.


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 Village Super Market Inc 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 * 0.4245+0.528 * 0.9903+0.404 * 1.859+0.892 * 1.0447+0.115 * 0.9572
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0363+4.679 * -0.0864-0.327 * 1.057
=-3.06

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $17 Mil.
Revenue was 379.744 + 396.838 + 372.511 + 392.241 = $1,541 Mil.
Gross Profit was 102.803 + 108.997 + 100.437 + 105.358 = $418 Mil.
Total Current Assets was $158 Mil.
Total Assets was $451 Mil.
Property, Plant and Equipment(Net PPE) was $204 Mil.
Depreciation, Depletion and Amortization(DDA) was $23 Mil.
Selling, General & Admin. Expense(SGA) was $363 Mil.
Total Current Liabilities was $137 Mil.
Long-Term Debt was $45 Mil.
Net Income was 3.879 + 5.87 + 3.188 + 2.818 = $16 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 0.051 + 16.602 + 4.757 + 33.303 = $55 Mil.
Accounts Receivable was $39 Mil.
Revenue was 357.046 + 376.323 + 359.808 + 382.175 = $1,475 Mil.
Gross Profit was 93.706 + 101.889 + 97.314 + 102.92 = $396 Mil.
Total Current Assets was $196 Mil.
Total Assets was $432 Mil.
Property, Plant and Equipment(Net PPE) was $191 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $335 Mil.
Total Current Liabilities was $124 Mil.
Long-Term Debt was $41 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)
=(17.216 / 1541.334) / (38.816 / 1475.352)
=0.01116955 / 0.02630965
=0.4245

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)
=(108.997 / 1475.352) / (102.803 / 1541.334)
=0.26829462 / 0.27093089
=0.9903

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 - (158.461 + 204.285) / 450.853) / (1 - (196.007 + 191.02) / 432.492)
=0.1954229 / 0.10512333
=1.859

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
=1541.334 / 1475.352
=1.0447

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))
=(20.55 / (20.55 + 191.02)) / (23.072 / (23.072 + 204.285))
=0.09713097 / 0.10147917
=0.9572

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)
=(363.033 / 1541.334) / (335.326 / 1475.352)
=0.23553169 / 0.22728542
=1.0363

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)
=((45.106 + 137.215) / 450.853) / ((40.996 + 124.473) / 432.492)
=0.40439123 / 0.38259436
=1.057

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
=(15.755 - 0 - 54.713) / 450.853
=-0.0864

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.

Village Super Market Inc has a M-score of -3.06 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.

Village Super Market Inc Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
DSRI 0.20771.01521.08340.99723.13930.36251.00031.09113.06050.367
GMI 0.97810.98390.98370.99560.98911.00681.00810.9861.01481.0015
AQI 0.86150.95291.93471.01050.72551.02110.98041.04180.65891.8226
SGI 1.02721.03371.02911.07771.07121.04451.02941.09491.03811.0286
DEPI 1.0570.9330.97021.01681.02250.9810.91210.93770.99681.0604
SGAI 1.01441.01091.00040.9970.98861.00431.01450.97651.02391.0398
LVGI 0.95920.92910.92011.10680.96430.96441.1040.87851.03571.175
TATA -0.0605-0.0669-0.0578-0.0746-0.0608-0.0278-0.1118-0.0293-0.063-0.1036
M-score -3.52-2.76-2.26-2.79-0.83-3.14-3.03-2.40-0.99-3.25

Village Super Market Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 1.09111.10551.06961.0643.06052.56515.80141.08310.3670.4245
GMI 0.9860.99641.00651.01151.01481.01521.0111.00821.00150.9903
AQI 1.04181.07781.10021.04060.65890.64090.61811.16261.82261.859
SGI 1.09491.07751.0661.05191.03811.02621.01941.01911.02861.0447
DEPI 0.93770.93980.94630.96230.99681.05961.07021.09151.06040.9572
SGAI 0.97650.98320.9891.01821.02381.0281.0511.0471.03981.0363
LVGI 0.87850.90130.97820.98931.03571.11631.11861.15251.1751.057
TATA -0.0293-0.0363-0.0538-0.0627-0.063-0.0679-0.1007-0.106-0.1036-0.0864
M-score -2.40-2.43-2.56-2.65-0.99-1.511.30-2.86-3.25-3.06
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