US Foods Holding (FRA:UFH) Beneish M-Score : -2.62 (As of Apr. 05, 2025)

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What is US Foods Holding Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for US Foods Holding's Beneish M-Score or its related term are showing as below:

FRA:UFH' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92 Med: -2.56 Max: -2.23
Current: -2.62

During the past 13 years, the highest Beneish M-Score of US Foods Holding was -2.23. The lowest was -2.92. And the median was -2.56.

US Foods Holding Beneish M-Score Historical Data

The historical data trend for US Foods Holding's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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US Foods Holding Beneish M-Score Chart

US Foods Holding Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.92

-2.23

-2.55

-2.66

-2.62

US Foods Holding Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.66	-2.60	-2.61	-2.60	-2.62

Competitive Comparison of US Foods Holding's Beneish M-Score

For the Food Distribution subindustry, US Foods Holding's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

US Foods Holding's Beneish M-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where US Foods Holding's Beneish M-Score falls into.

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US Foods Holding Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 US Foods Holding for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.036

0.528 * 1.0007

0.404 * 1.0083

0.892 * 1.0623

0.115 * 0.9909

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.994

4.679 * -0.037322

0.327 * 1.0336

-2.57

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was €2,028 Mil.
Revenue was 9063.905 + 8764.928 + 9019.661 + 8233.08 = €35,082 Mil.
Gross Profit was 1591.03 + 1501.967 + 1584.874 + 1375.4 = €6,053 Mil.
Total Current Assets was €3,795 Mil.
Total Assets was €12,831 Mil.
Property, Plant and Equipment(Net PPE) was €2,290 Mil.
Depreciation, Depletion and Amortization(DDA) was €406 Mil.
Selling, General, & Admin. Expense(SGA) was €5,013 Mil.
Total Current Liabilities was €3,148 Mil.
Long-Term Debt & Capital Lease Obligation was €4,839 Mil.
Net Income was 63.03 + 133.348 + 183.942 + 75.44 = €456 Mil.
Non Operating Income was -130.835 + -10.812 + -1.858 + -11.04 = €-155 Mil.
Cash Flow from Operations was 270.265 + 243.27 + 447.778 + 127.88 = €1,089 Mil.

Total Receivables was €1,843 Mil.
Revenue was 8194.312 + 8532.322 + 8318.999 + 7978.228 = €33,024 Mil.
Gross Profit was 1458.03 + 1444.854 + 1468.493 + 1330.95 = €5,702 Mil.
Total Current Assets was €3,696 Mil.
Total Assets was €12,092 Mil.
Property, Plant and Equipment(Net PPE) was €2,091 Mil.
Depreciation, Depletion and Amortization(DDA) was €366 Mil.
Selling, General, & Admin. Expense(SGA) was €4,747 Mil.
Total Current Liabilities was €2,854 Mil.
Long-Term Debt & Capital Lease Obligation was €4,428 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(2028.42 / 35081.574)	/	(1843.17 / 33023.861)
	=	0.05782	/	0.055813
	=	1.036

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)
	=	(5702.327 / 33023.861)	/	(6053.271 / 35081.574)
	=	0.172673	/	0.172548
	=	1.0007

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (3795.17 + 2290.09) / 12831.38)	/	(1 - (3696.427 + 2090.76) / 12092.479)
	=	0.525752	/	0.521423
	=	1.0083

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	35081.574	/	33023.861
	=	1.0623

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(366.391 / (366.391 + 2090.76))	/	(405.651 / (405.651 + 2290.09))
	=	0.149112	/	0.150478
	=	0.9909

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(5012.695 / 35081.574)	/	(4747.189 / 33023.861)
	=	0.142887	/	0.14375
	=	0.994

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((4838.985 + 3147.68) / 12831.38)	/	((4428.193 + 2853.704) / 12092.479)
	=	0.622432	/	0.602184
	=	1.0336

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
	=	(455.76 - -154.545	-	1089.193)	/	12831.38
	=	-0.037322

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

US Foods Holding has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.

US Foods Holding Beneish M-Score Related Terms

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US Foods Holding Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » US Foods Holding Corp (FRA:UFH) » Definitions » Beneish M-Score

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USFD:USA

Address

9399 West Higgins Road, Suite 100, Rosemont, IL, USA, 60018

Website

https://www.usfoods.com

US Foods Holding Corp is the U.S. food service distributor that distributes food and nonfood products to the healthcare and hospitality industries, restaurants, and education, government facilities, and grocers. It has nearly 250,000 restaurants and foodservice operators with more than 70 locations that provide customers with food offering and a comprehensive suite of e-commerce, technology, and business solutions. The company operates in one business segment in which it markets, sells and distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the U.S.

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