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Village Super Market Inc (NAS:VLGEA)
Beneish M-Score
-2.25 (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 -2.25 suggests that the company is not a manipulator.

VLGEA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.68   Max: 22.8
Current: -2.25

-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 -2.63.


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 * 1.0082+0.528 * 0.9907+0.404 * 1.0948+0.892 * 1.0339+0.115 * 0.9862
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9821+4.679 * 0.0192-0.327 * 0.789
=-2.25

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $18 Mil.
Revenue was 389.529 + 405.754 + 387.1 + 411.191 = $1,594 Mil.
Gross Profit was 105.487 + 112.088 + 107.098 + 111.126 = $436 Mil.
Total Current Assets was $138 Mil.
Total Assets was $435 Mil.
Property, Plant and Equipment(Net PPE) was $204 Mil.
Depreciation, Depletion and Amortization(DDA) was $23 Mil.
Selling, General & Admin. Expense(SGA) was $369 Mil.
Total Current Liabilities was $94 Mil.
Long-Term Debt was $44 Mil.
Net Income was 4.43 + 6.932 + 13.206 + 6.603 = $31 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 5.415 + 9.944 + -28.096 + 35.569 = $23 Mil.
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.



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)
=(17.945 / 1593.574) / (17.216 / 1541.334)
=0.01126085 / 0.01116955
=1.0082

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)
=(112.088 / 1541.334) / (105.487 / 1593.574)
=0.27093089 / 0.27347271
=0.9907

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 - (137.712 + 203.866) / 434.546) / (1 - (158.461 + 204.285) / 450.853)
=0.21394283 / 0.1954229
=1.0948

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
=1593.574 / 1541.334
=1.0339

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))
=(23.072 / (23.072 + 204.285)) / (23.385 / (23.385 + 203.866))
=0.10147917 / 0.10290384
=0.9862

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)
=(368.604 / 1593.574) / (363.033 / 1541.334)
=0.23130648 / 0.23553169
=0.9821

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)
=((44.197 + 94.452) / 434.546) / ((45.106 + 137.215) / 450.853)
=0.31906634 / 0.40439123
=0.789

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
=(31.171 - 0 - 22.832) / 434.546
=0.0192

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 -2.25 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

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 -0.0669-0.0578-0.0746-0.0608-0.0278-0.1118-0.0293-0.063-0.10360.0303
M-score -2.76-2.26-2.79-0.84-3.13-3.03-2.41-0.99-3.24-1.98

Village Super Market Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 3.06052.56515.80141.08310.3670.42450.17381.73811.24271.0082
GMI 1.01481.01521.0111.00821.00150.99030.98810.98120.98360.9907
AQI 0.65890.64090.61811.16261.82261.8591.8111.04781.0961.0948
SGI 1.03811.02621.01941.01911.02861.04471.05041.05121.04291.0339
DEPI 0.99681.05961.07021.09151.06040.95720.94070.92990.95860.9862
SGAI 1.02381.0281.0511.0471.03981.03630.99450.98750.98540.9821
LVGI 1.03021.10961.11861.15251.16191.0471.0510.83090.7750.789
TATA -0.063-0.0679-0.1007-0.106-0.1036-0.0864-0.080.01270.03030.0192
M-score -0.99-1.511.30-2.86-3.24-3.06-3.27-1.64-1.98-2.25
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