Switch to:

Hormel Foods Beneish M-Score

: -2.53 (As of Today)
View and export this data going back to 1990. Start your Free Trial

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.

Hormel Foods has a M-score of -2.53 suggests that the company is not a manipulator.

NYSE:HRL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03   Max: -1.22
Current: -2.53

-3.03
-1.22

During the past 13 years, the highest Beneish M-Score of Hormel Foods was -1.22. The lowest was -3.03. And the median was -2.53.


Hormel Foods 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.

Hormel Foods Annual Data
Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.52 -2.78 -2.67 -2.49 -2.68

Hormel Foods Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
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 -2.61 -2.68 -2.56 -2.55 -2.53

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.


Hormel Foods Beneish M-Score Distribution

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



Hormel Foods 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 Hormel Foods 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 * 0.9446+0.528 * 1.0097+0.404 * 0.8986+0.892 * 1.0007+0.115 * 1.0261
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8981+4.679 * -0.0134-0.327 * 0.7628
=-2.53

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

This Year (Jul19) TTM:Last Year (Jul18) TTM:
Accounts Receivable was USD 529 Mil.
Revenue was 2290.705 + 2344.744 + 2360.355 + 2524.697 = USD 9,521 Mil.
Gross Profit was 433.442 + 469.149 + 488.334 + 549.288 = USD 1,940 Mil.
Total Current Assets was USD 2,246 Mil.
Total Assets was USD 7,955 Mil.
Property, Plant and Equipment(Net PPE) was USD 1,516 Mil.
Depreciation, Depletion and Amortization(DDA) was USD 163 Mil.
Selling, General, & Admin. Expense(SGA) was USD 746 Mil.
Total Current Liabilities was USD 1,073 Mil.
Long-Term Debt & Capital Lease Obligation was USD 250 Mil.
Net Income was 199.449 + 282.429 + 241.425 + 261.406 = USD 985 Mil.
Non Operating Income was 3.384 + 13.291 + 11.458 + -8.465 = USD 20 Mil.
Cash Flow from Operations was 207.319 + 178.168 + 187.425 + 498.524 = USD 1,071 Mil.
Accounts Receivable was USD 559 Mil.
Revenue was 2359.142 + 2330.568 + 2331.293 + 2492.608 = USD 9,514 Mil.
Gross Profit was 455.046 + 492.803 + 498.296 + 511.554 = USD 1,958 Mil.
Total Current Assets was USD 1,854 Mil.
Total Assets was USD 7,895 Mil.
Property, Plant and Equipment(Net PPE) was USD 1,410 Mil.
(DDA) was USD 156 Mil.
Selling, General, & Admin. Expense(SGA) was USD 830 Mil.
Total Current Liabilities was USD 1,097 Mil.
Long-Term Debt & Capital Lease Obligation was USD 625 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)
=(528.583 / 9520.501) / (559.181 / 9513.611)
=0.0555205 / 0.05877695
=0.9446

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)
=(1957.699 / 9513.611) / (1940.213 / 9520.501)
=0.20577875 / 0.20379316
=1.0097

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 - (2245.968 + 1516.386) / 7954.576) / (1 - (1854.31 + 1410.31) / 7895.373)
=0.52702017 / 0.58651479
=0.8986

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
=9520.501 / 9513.611
=1.0007

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))
=(155.964 / (155.964 + 1410.31)) / (162.965 / (162.965 + 1516.386))
=0.09957645 / 0.09704046
=1.0261

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)
=(746.076 / 9520.501) / (830.136 / 9513.611)
=0.0783652 / 0.08725772
=0.8981

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)
=((250 + 1073.087) / 7954.576) / ((624.801 + 1096.831) / 7895.373)
=0.1663303 / 0.21805582
=0.7628

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
=(984.709 - 19.668 - 1071.436) / 7954.576
=-0.0134

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.

Hormel Foods has a M-score of -2.53 suggests that the company will not be a manipulator.


Hormel Foods Beneish M-Score Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK