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Village Super Market Inc (NAS:VLGEA)
Beneish M-Score
-3.09 (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 -3.09 suggests that the company is not a manipulator.

VLGEA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52   Max: 2.4
Current: -3.09

-3.52
2.4

During the past 13 years, the highest Beneish M-Score of Village Super Market Inc was 2.40. The lowest was -3.52. And the median was -2.76.


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 * 0.7626+0.528 * 1.0046+0.404 * 0.9546+0.892 * 1.0323+0.115 * 0.9497
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9961+4.679 * -0.0867-0.327 * 0.9888
=-3.09

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $13 Mil.
Revenue was $1,635 Mil.
Gross Profit was $445 Mil.
Total Current Assets was $160 Mil.
Total Assets was $450 Mil.
Property, Plant and Equipment(Net PPE) was $201 Mil.
Depreciation, Depletion and Amortization(DDA) was $24 Mil.
Selling, General & Admin. Expense(SGA) was $377 Mil.
Total Current Liabilities was $99 Mil.
Long-Term Debt was $44 Mil.
Net Income was $25 Mil.
Non Operating Income was $0 Mil.
Cash Flow from Operations was $64 Mil.
Accounts Receivable was $17 Mil.
Revenue was $1,584 Mil.
Gross Profit was $433 Mil.
Total Current Assets was $136 Mil.
Total Assets was $432 Mil.
Property, Plant and Equipment(Net PPE) was $207 Mil.
Depreciation, Depletion and Amortization(DDA) was $23 Mil.
Selling, General & Admin. Expense(SGA) was $366 Mil.
Total Current Liabilities was $94 Mil.
Long-Term Debt was $44 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)
=(13.185 / 1634.904) / (16.748 / 1583.789)
=0.00806469 / 0.01057464
=0.7626

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)
=(433.115 / 1583.789) / (445.03 / 1634.904)
=0.27346761 / 0.27220559
=1.0046

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 - (159.834 + 201.47) / 450.254) / (1 - (135.911 + 206.594) / 431.889)
=0.19755516 / 0.20696058
=0.9546

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
=1634.904 / 1583.789
=1.0323

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))
=(23.33 / (23.33 + 206.594)) / (24.101 / (24.101 + 201.47))
=0.10146831 / 0.10684441
=0.9497

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)
=(376.601 / 1634.904) / (366.254 / 1583.789)
=0.23035053 / 0.23125176
=0.9961

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)
=((43.561 + 99.296) / 450.254) / ((44.425 + 94.151) / 431.889)
=0.31728091 / 0.32086022
=0.9888

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
=(25.044 - 0 - 64.101) / 450.254
=-0.0867

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 -3.09 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 local exchange's currency.

Village Super Market Inc Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
DSRI 1.08340.99723.13930.36251.00031.09113.06050.3671.24270.7626
GMI 0.98370.99560.98911.00681.00810.9861.01481.00150.98361.0046
AQI 1.93471.01050.72551.02110.98041.04180.65891.82261.07690.9546
SGI 1.02911.07771.07121.04451.02941.09491.03811.02861.04291.0323
DEPI 0.97021.01681.02250.9810.91210.93770.99681.06040.95860.9497
SGAI 1.00040.9970.98861.00431.01450.97651.02391.03980.98540.9961
LVGI 0.92011.10680.97850.95041.1040.89321.03021.16190.76740.9888
TATA -0.0543-0.0746-0.0608-0.0278-0.1118-0.0293-0.063-0.10360.0305-0.0867
M-score -2.24-2.79-0.84-3.13-3.03-2.41-0.99-3.24-1.98-3.09
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