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Village Super Market Inc (NAS:VLGEA)
Beneish M-Score
-1.64 (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 -1.64 signals that the company is a manipulator.

VLGEA' s 10-Year Beneish M-Score Range
Min: -3.68   Max: 22.8
Current: -1.64

-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 * 1.7381+0.528 * 0.9812+0.404 * 1.0478+0.892 * 1.0512+0.115 * 0.9299
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9875+4.679 * 0.0127-0.327 * 0.8309
=-1.64

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $17 Mil.
Revenue was 387.1 + 411.191 + 379.744 + 396.838 = $1,575 Mil.
Gross Profit was 107.098 + 111.126 + 102.803 + 108.997 = $430 Mil.
Total Current Assets was $133 Mil.
Total Assets was $427 Mil.
Property, Plant and Equipment(Net PPE) was $207 Mil.
Depreciation, Depletion and Amortization(DDA) was $24 Mil.
Selling, General & Admin. Expense(SGA) was $364 Mil.
Total Current Liabilities was $95 Mil.
Long-Term Debt was $45 Mil.
Net Income was 13.206 + 6.603 + 3.879 + 5.87 = $30 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -28.096 + 35.569 + 0.051 + 16.602 = $24 Mil.
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.



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)
=(16.687 / 1574.873) / (9.133 / 1498.121)
=0.01059578 / 0.0060963
=1.7381

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)
=(111.126 / 1498.121) / (107.098 / 1574.873)
=0.26792896 / 0.27305313
=0.9812

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 - (133.077 + 206.945) / 427.412) / (1 - (153.317 + 201.517) / 440.858)
=0.20446314 / 0.19512859
=1.0478

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
=1574.873 / 1498.121
=1.0512

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))
=(21.387 / (21.387 + 201.517)) / (23.809 / (23.809 + 206.945))
=0.09594713 / 0.10317914
=0.9299

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)
=(363.743 / 1574.873) / (350.394 / 1498.121)
=0.23096656 / 0.23388898
=0.9875

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)
=((44.651 + 95.144) / 427.412) / ((42.141 + 131.395) / 440.858)
=0.32707318 / 0.39363242
=0.8309

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
=(29.558 - 0 - 24.126) / 427.412
=0.0127

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 -1.64 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

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 0.95920.92910.92011.10680.97850.95041.1040.87851.04741.1619
TATA -0.0605-0.0669-0.0578-0.0746-0.0608-0.0278-0.1118-0.0293-0.063-0.1036
M-score -3.52-2.76-2.26-2.79-0.84-3.13-3.03-2.40-1.00-3.24

Village Super Market Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1.06961.0643.06052.56515.80141.08310.3670.42450.17381.7381
GMI 1.00651.01151.01481.01521.0111.00821.00150.99030.98810.9812
AQI 1.10021.04060.65890.64090.61811.16261.82261.8591.8111.0478
SGI 1.0661.05191.03811.02621.01941.01911.02861.04471.05041.0512
DEPI 0.94630.96230.99681.05961.07021.09151.06040.95720.94070.9299
SGAI 0.9891.01821.02381.0281.0511.0471.03981.03630.99450.9875
LVGI 0.97820.98931.04741.11631.11861.15251.16191.0571.0510.8309
TATA -0.0538-0.0627-0.063-0.0679-0.1007-0.106-0.1036-0.0864-0.080.0127
M-score -2.56-2.65-1.00-1.511.30-2.86-3.24-3.06-3.27-1.64
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