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General Mills Beneish M-Score

: -2.59 (As of Today)
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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.

General Mills has a M-score of -2.59 suggests that the company is not a manipulator.

NYSE:GIS' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Max: -1.79
Current: -2.59

-2.97
-1.79

During the past 13 years, the highest Beneish M-Score of General Mills was -1.79. The lowest was -2.97. And the median was -2.59.


General Mills Beneish M-Score Historical Data

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

* Premium members only.

General Mills Annual Data
May10 May11 May12 May13 May14 May15 May16 May17 May18 May19
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.70 -2.75 -2.59 -2.36 -2.59

General Mills Quarterly Data
Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.36 -2.42 -2.36 -2.45 -2.59

Competitive Comparison
* 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.


General Mills Beneish M-Score Distribution

* The bar in red indicates where General Mills's Beneish M-Score falls into.



General Mills 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 General Mills 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 * 0.9308+0.528 * 1.0117+0.404 * 1.0027+0.892 * 1.0715+0.115 * 0.9426
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9614+4.679 * -0.0278-0.327 * 0.951
=-2.59

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

This Year (May19) TTM:Last Year (May18) TTM:
Accounts Receivable was $1,680 Mil.
Revenue was 4161.7 + 4198.3 + 4411.2 + 4094 = $16,865 Mil.
Gross Profit was 1461.3 + 1443 + 1509.7 + 1342.8 = $5,757 Mil.
Total Current Assets was $4,187 Mil.
Total Assets was $30,111 Mil.
Property, Plant and Equipment(Net PPE) was $3,787 Mil.
Depreciation, Depletion and Amortization(DDA) was $620 Mil.
Selling, General, & Admin. Expense(SGA) was $2,936 Mil.
Total Current Liabilities was $7,087 Mil.
Long-Term Debt & Capital Lease Obligation was $11,625 Mil.
Net Income was 570.2 + 446.8 + 343.4 + 392.3 = $1,753 Mil.
Non Operating Income was 22.6 + -73.7 + -188.4 + 22.3 = $-217 Mil.
Cash Flow from Operations was 779.4 + 631.1 + 789.1 + 607.4 = $2,807 Mil.
Accounts Receivable was $1,684 Mil.
Revenue was 3890.2 + 3882.3 + 4198.7 + 3769.2 = $15,740 Mil.
Gross Profit was 1419.6 + 1256.5 + 1446.2 + 1313.3 = $5,436 Mil.
Total Current Assets was $4,124 Mil.
Total Assets was $30,624 Mil.
Property, Plant and Equipment(Net PPE) was $4,047 Mil.
(DDA) was $619 Mil.
Selling, General, & Admin. Expense(SGA) was $2,850 Mil.
Total Current Liabilities was $7,342 Mil.
Long-Term Debt & Capital Lease Obligation was $12,669 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(1679.7 / 16865.2) / (1684.2 / 15740.4)
=0.09959562 / 0.10699855
=0.9308

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)
=(5435.6 / 15740.4) / (5756.8 / 16865.2)
=0.34532795 / 0.34134193
=1.0117

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 - (4186.5 + 3787.2) / 30111.2) / (1 - (4123.7 + 4047.2) / 30624)
=0.73519156 / 0.73318639
=1.0027

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
=16865.2 / 15740.4
=1.0715

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))
=(618.8 / (618.8 + 4047.2)) / (620.1 / (620.1 + 3787.2))
=0.13261895 / 0.14069839
=0.9426

6. SGAI = Sales, General and Administrative expenses Index

The ratio of c 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)
=(2935.8 / 16865.2) / (2850.1 / 15740.4)
=0.17407443 / 0.1810691
=0.9614

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)
=((11624.8 + 7087.1) / 30111.2) / ((12668.7 + 7341.9) / 30624)
=0.62142658 / 0.65342868
=0.951

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
=(1752.7 - -217.2 - 2807) / 30111.2
=-0.0278

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.

General Mills has a M-score of -2.59 suggests that the company will not be a manipulator.


General Mills Beneish M-Score Headlines

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