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Village Super Market Inc (NAS:VLGEA)
Beneish M-Score
-1.99 (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 -1.99 signals that the company is a manipulator.

VLGEA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.74   Max: 22.77
Current: -1.99

-3.74
22.77

During the past 13 years, the highest Beneish M-Score of Village Super Market Inc was 22.77. The lowest was -3.74. And the median was -2.65.


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 * 1.2649+0.528 * 0.9941+0.404 * 1.1172+0.892 * 1.0271+0.115 * 0.9989
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0004+4.679 * 0.0232-0.327 * 0.7724
=-1.99

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $7 Mil.
Revenue was 420.17 + 389.529 + 405.754 + 387.1 = $1,603 Mil.
Gross Profit was 112.726 + 105.487 + 112.088 + 107.098 = $437 Mil.
Total Current Assets was $148 Mil.
Total Assets was $443 Mil.
Property, Plant and Equipment(Net PPE) was $203 Mil.
Depreciation, Depletion and Amortization(DDA) was $23 Mil.
Selling, General & Admin. Expense(SGA) was $371 Mil.
Total Current Liabilities was $98 Mil.
Long-Term Debt was $44 Mil.
Net Income was 6.284 + 4.43 + 6.932 + 13.206 = $31 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 33.326 + 5.415 + 9.944 + -28.096 = $21 Mil.
Accounts Receivable was $5 Mil.
Revenue was 411.191 + 379.744 + 396.838 + 372.511 = $1,560 Mil.
Gross Profit was 111.126 + 102.803 + 108.997 + 100.437 = $423 Mil.
Total Current Assets was $176 Mil.
Total Assets was $468 Mil.
Property, Plant and Equipment(Net PPE) was $205 Mil.
Depreciation, Depletion and Amortization(DDA) was $24 Mil.
Selling, General & Admin. Expense(SGA) was $361 Mil.
Total Current Liabilities was $150 Mil.
Long-Term Debt was $45 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)
=(6.765 / 1602.553) / (5.207 / 1560.284)
=0.00422139 / 0.00333721
=1.2649

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)
=(105.487 / 1560.284) / (112.726 / 1602.553)
=0.27133714 / 0.27293887
=0.9941

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 - (147.827 + 203.141) / 443.235) / (1 - (175.519 + 205.126) / 467.812)
=0.20816723 / 0.18632912
=1.1172

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
=1602.553 / 1560.284
=1.0271

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))
=(23.65 / (23.65 + 205.126)) / (23.451 / (23.451 + 203.141))
=0.10337623 / 0.10349439
=0.9989

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)
=(371.376 / 1602.553) / (361.419 / 1560.284)
=0.23174023 / 0.23163668
=1.0004

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)
=((43.977 + 98.324) / 443.235) / ((44.881 + 149.562) / 467.812)
=0.32105091 / 0.41564346
=0.7724

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
=(30.852 - 0 - 20.589) / 443.235
=0.0232

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 -1.99 signals that the company is likely to 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

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
DSRI 1.01521.08340.99723.13930.36251.00031.09113.06050.3671.2427
GMI 0.98390.98370.99560.98911.00681.00810.9861.01481.00150.9836
AQI 0.95291.93471.01050.72551.02110.98041.04180.65891.82261.096
SGI 1.03371.02911.07771.07121.04451.02941.09491.03811.02861.0429
DEPI 0.9330.97021.01681.02250.9810.91210.93770.99681.06040.9586
SGAI 1.01091.00040.9970.98861.00431.01450.97651.02391.03980.9854
LVGI 0.92910.92011.10680.97850.95041.1040.89321.03021.16190.775
TATA -0.0706-0.0543-0.0746-0.0608-0.0278-0.1118-0.0293-0.063-0.10360.0303
M-score -2.78-2.24-2.79-0.84-3.13-3.03-2.41-0.99-3.24-1.98

Village Super Market Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 2.56515.80141.08310.3670.42450.17381.73811.24271.00821.2649
GMI 1.01521.0111.00821.00150.99030.98810.98120.98360.99070.9941
AQI 0.64090.61811.16261.82261.8591.8111.04781.0961.09481.1172
SGI 1.02621.01941.01911.02861.04471.05041.05121.04291.03391.0271
DEPI 1.05961.07021.09151.06040.95720.94070.92990.95860.98620.9989
SGAI 1.0281.0511.0471.03981.03630.99450.98750.98540.98211.0004
LVGI 1.10961.11861.15251.16191.0471.0510.83090.7750.7890.7724
TATA -0.0679-0.1007-0.106-0.1036-0.0864-0.080.01270.03030.01920.0232
M-score -1.511.30-2.86-3.24-3.06-3.27-1.64-1.98-2.25-1.99
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