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Village Super Market Inc (NAS:VLGEA)
Beneish M-Score
-3.25 (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 -3.25 suggests that the company is not a manipulator.

VLGEA' s 10-Year Beneish M-Score Range
Min: -3.5   Max: 2.45
Current: -3.25

-3.5
2.45

During the past 13 years, the highest Beneish M-Score of Village Super Market Inc was 2.45. The lowest was -3.50. And the median was -2.73.


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 * 0.367+0.528 * 1.0015+0.404 * 1.8226+0.892 * 1.0286+0.115 * 1.0604
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0398+4.679 * -0.1036-0.327 * 1.175
=-3.25

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $13 Mil.
Revenue was 396.838 + 372.511 + 392.241 + 357.046 = $1,519 Mil.
Gross Profit was 108.997 + 100.437 + 105.358 + 93.706 = $408 Mil.
Total Current Assets was $163 Mil.
Total Assets was $457 Mil.
Property, Plant and Equipment(Net PPE) was $207 Mil.
Depreciation, Depletion and Amortization(DDA) was $22 Mil.
Selling, General & Admin. Expense(SGA) was $356 Mil.
Total Current Liabilities was $146 Mil.
Long-Term Debt was $45 Mil.
Net Income was 5.87 + 3.188 + 2.818 + -6.831 = $5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 16.602 + 4.757 + 33.303 + -2.215 = $52 Mil.
Accounts Receivable was $34 Mil.
Revenue was 376.323 + 359.808 + 382.175 + 358.151 = $1,476 Mil.
Gross Profit was 101.889 + 97.314 + 102.92 + 95.637 = $398 Mil.
Total Current Assets was $205 Mil.
Total Assets was $427 Mil.
Property, Plant and Equipment(Net PPE) was $177 Mil.
Depreciation, Depletion and Amortization(DDA) was $20 Mil.
Selling, General & Admin. Expense(SGA) was $333 Mil.
Total Current Liabilities was $111 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)
=(12.923 / 1518.636) / (34.231 / 1476.457)
=0.00850961 / 0.02318456
=0.367

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)
=(100.437 / 1476.457) / (108.997 / 1518.636)
=0.26940168 / 0.26899007
=1.0015

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 - (162.786 + 206.72) / 457.412) / (1 - (205.364 + 176.981) / 427.412)
=0.19218123 / 0.10544159
=1.8226

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
=1518.636 / 1476.457
=1.0286

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))
=(20.354 / (20.354 + 176.981)) / (22.274 / (22.274 + 206.72))
=0.1031444 / 0.09726892
=1.0604

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)
=(356.397 / 1518.636) / (333.23 / 1476.457)
=0.23468231 / 0.2256957
=1.0398

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)
=((45.242 + 146.004) / 457.412) / ((41.019 + 111.065) / 427.412)
=0.41810447 / 0.35582529
=1.175

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
=(5.045 - 0 - 52.447) / 457.412
=-0.1036

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 -3.25 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 0.95920.92910.92011.10680.97850.95041.1040.87851.03571.175
TATA -0.0605-0.0669-0.0578-0.0746-0.0608-0.0278-0.1118-0.0293-0.063-0.1036
M-score -3.52-2.76-2.26-2.79-0.84-3.13-3.03-2.40-0.99-3.25

Village Super Market Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 1.07241.09111.10551.06961.0643.06052.56515.80141.08310.367
GMI 0.98730.9860.99641.00651.01151.01481.01521.0111.00821.0015
AQI 1.06021.04181.07781.10021.04060.65890.64090.61811.16261.8226
SGI 1.07771.09491.07751.0661.05191.03811.02621.01941.01911.0286
DEPI 0.95640.93770.93980.94630.96230.99681.05961.07021.09151.0604
SGAI 0.97070.97650.98320.9891.01821.02381.0281.0511.0471.0398
LVGI 0.94830.87850.90130.97820.98931.03571.11631.11861.15251.175
TATA -0.0329-0.0293-0.0363-0.0538-0.0627-0.063-0.0679-0.1007-0.106-0.1036
M-score -2.46-2.40-2.43-2.56-2.65-0.99-1.511.30-2.86-3.25
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