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Village Super Market Inc (NAS:VLGEA)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

VLGEA' s 10-Year Beneish M-Score Range
Min: -3.67   Max: 22.8
Current: -2.86

-3.67
22.8

During the past 13 years, the highest Beneish M-Score of Village Super Market Inc was 22.80. The lowest was -3.67. And the median was -2.62.


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 * 1.0831+0.528 * 1.0082+0.404 * 1.1626+0.892 * 1.0191+0.115 * 1.0915
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.047+4.679 * -0.106-0.327 * 1.1525
=-2.86

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $9 Mil.
Revenue was 372.511 + 392.241 + 357.046 + 376.323 = $1,498 Mil.
Gross Profit was 100.437 + 105.358 + 93.706 + 101.889 = $401 Mil.
Total Current Assets was $153 Mil.
Total Assets was $441 Mil.
Property, Plant and Equipment(Net PPE) was $202 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $350 Mil.
Total Current Liabilities was $131 Mil.
Long-Term Debt was $42 Mil.
Net Income was 3.188 + 2.818 + -6.831 + 6.203 = $5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 4.757 + 33.303 + -2.215 + 16.242 = $52 Mil.
Accounts Receivable was $8 Mil.
Revenue was 359.808 + 382.175 + 358.151 + 369.859 = $1,470 Mil.
Gross Profit was 97.314 + 102.92 + 95.637 + 101.199 = $397 Mil.
Total Current Assets was $173 Mil.
Total Assets was $415 Mil.
Property, Plant and Equipment(Net PPE) was $172 Mil.
Depreciation, Depletion and Amortization(DDA) was $20 Mil.
Selling, General & Admin. Expense(SGA) was $328 Mil.
Total Current Liabilities was $101 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)
=(9.133 / 1498.121) / (8.274 / 1469.993)
=0.0060963 / 0.0056286
=1.0831

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)
=(105.358 / 1469.993) / (100.437 / 1498.121)
=0.27011693 / 0.26792896
=1.0082

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 - (153.317 + 201.517) / 440.858) / (1 - (173.031 + 172.261) / 414.933)
=0.19512859 / 0.16783674
=1.1626

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
=1498.121 / 1469.993
=1.0191

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))
=(20.15 / (20.15 + 172.261)) / (21.387 / (21.387 + 201.517))
=0.10472374 / 0.09594713
=1.0915

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)
=(350.394 / 1498.121) / (328.378 / 1469.993)
=0.23388898 / 0.22338746
=1.047

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)
=((42.141 + 131.395) / 440.858) / ((40.968 + 100.747) / 414.933)
=0.39363242 / 0.34153707
=1.1525

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
=(5.378 - 0 - 52.087) / 440.858
=-0.106

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 -2.86 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

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
DSRI 6.64870.20771.01521.08340.99723.13930.36251.00031.09113.0605
GMI 0.97910.97810.98390.98370.99560.98911.00681.00810.9861.0148
AQI 0.93240.86460.94251.9491.0150.72231.02110.98041.04180.6589
SGI 1.06121.02721.03371.02911.07771.07121.04451.02941.09491.0381
DEPI 0.98851.0570.9330.97021.01681.02250.9810.91210.93770.9968
SGAI 1.00751.01441.01091.00040.9970.98861.00431.01450.97651.0239
LVGI 0.92160.96270.93720.90891.11170.96010.96441.1040.87851.0357
TATA -0.0667-0.0607-0.0664-0.0578-0.0751-0.0608-0.0278-0.1118-0.0293-0.063
M-score 2.44-3.52-2.77-2.25-2.80-0.83-3.14-3.03-2.40-0.99

Village Super Market Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
DSRI 1.06161.07241.09111.10551.06961.0643.06052.56515.80141.0831
GMI 0.98930.98730.9860.99641.00651.01151.01481.01521.0111.0082
AQI 0.98481.06021.04181.07781.10021.04060.65890.64090.61811.1626
SGI 1.06711.07771.09491.07751.0661.05191.03811.02621.01941.0191
DEPI 0.95120.95640.93770.93980.94630.96230.99681.05961.07021.0915
SGAI 1.01290.97070.97650.98320.9891.01821.02381.0281.0511.047
LVGI 1.01370.94830.87850.90130.97820.98931.03571.11631.11861.1525
TATA -0.0734-0.0329-0.0293-0.0363-0.0538-0.0627-0.063-0.0679-0.1007-0.106
M-score -2.73-2.46-2.40-2.43-2.56-2.65-0.99-1.511.30-2.86
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