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The Kroger Co (STU:KOG) Beneish M-Score : -2.78 (As of Dec. 14, 2024)


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What is The Kroger Co 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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:KOG' s Beneish M-Score Range Over the Past 10 Years
Min: -3   Med: -2.79   Max: -2.46
Current: -2.78

During the past 13 years, the highest Beneish M-Score of The Kroger Co was -2.46. The lowest was -3.00. And the median was -2.79.


The Kroger Co Beneish M-Score Historical Data

The historical data trend for The Kroger Co'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.

* Premium members only.

The Kroger Co Beneish M-Score Chart

The Kroger Co Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.84 -2.90 -2.80 -2.46 -2.98

The Kroger Co Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Beneish M-Score Get a 7-Day Free Trial 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 -2.92 -2.98 -2.81 -2.65 -2.78

Competitive Comparison of The Kroger Co's Beneish M-Score

For the Grocery Stores subindustry, The Kroger Co'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.


The Kroger Co's Beneish M-Score Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Beneish M-Score distribution charts can be found below:

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



The Kroger Co 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 The Kroger Co 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 * 1.0803+0.528 * 0.9727+0.404 * 0.6687+0.892 * 1.0154+0.115 * 0.9688
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0112+4.679 * -0.054003-0.327 * 1.0487
=-2.81

* 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.

This Year (Oct24) TTM:Last Year (Oct23) TTM:
Total Receivables was €2,013 Mil.
Revenue was 30876.012 + 31266.864 + 42190.708 + 34024.752 = €138,358 Mil.
Gross Profit was 7055.748 + 7054.222 + 9455.14 + 7730.478 = €31,296 Mil.
Total Current Assets was €22,973 Mil.
Total Assets was €57,300 Mil.
Property, Plant and Equipment(Net PPE) was €29,860 Mil.
Depreciation, Depletion and Amortization(DDA) was €3,539 Mil.
Selling, General, & Admin. Expense(SGA) was €823 Mil.
Total Current Liabilities was €14,940 Mil.
Long-Term Debt & Capital Lease Obligation was €26,554 Mil.
Net Income was 567.324 + 429.652 + 882.604 + 675.648 = €2,555 Mil.
Non Operating Income was 56.916 + -108.796 + 18.64 + -146.88 = €-180 Mil.
Cash Flow from Operations was 850.068 + 1050.158 + 2166.9 + 1762.56 = €5,830 Mil.
Total Receivables was €1,835 Mil.
Revenue was 32157.279 + 30603.112 + 41190.48 + 32314.816 = €136,266 Mil.
Gross Profit was 7083.56 + 6669.712 + 9197.52 + 7030.528 = €29,981 Mil.
Total Current Assets was €12,727 Mil.
Total Assets was €48,317 Mil.
Property, Plant and Equipment(Net PPE) was €29,957 Mil.
Depreciation, Depletion and Amortization(DDA) was €3,427 Mil.
Selling, General, & Admin. Expense(SGA) was €801 Mil.
Total Current Liabilities was €15,895 Mil.
Long-Term Debt & Capital Lease Obligation was €17,469 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)
=(2013.174 / 138358.336) / (1835.286 / 136265.687)
=0.01455 / 0.013468
=1.0803

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)
=(29981.32 / 136265.687) / (31295.588 / 138358.336)
=0.220021 / 0.226192
=0.9727

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 - (22972.95 + 29859.786) / 57299.724) / (1 - (12726.733 + 29957.398) / 48316.887)
=0.077958 / 0.116579
=0.6687

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
=138358.336 / 136265.687
=1.0154

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))
=(3426.856 / (3426.856 + 29957.398)) / (3538.564 / (3538.564 + 29859.786))
=0.102649 / 0.10595
=0.9688

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)
=(822.5 / 138358.336) / (801.067 / 136265.687)
=0.005945 / 0.005879
=1.0112

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)
=((26554.068 + 14939.532) / 57299.724) / ((17469.309 + 15895.395) / 48316.887)
=0.72415 / 0.690539
=1.0487

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
=(2555.228 - -180.12 - 5829.686) / 57299.724
=-0.054003

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.

The Kroger Co has a M-score of -2.81 suggests that the company is unlikely to be a manipulator.


The Kroger Co Beneish M-Score Related Terms

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The Kroger Co Business Description

Traded in Other Exchanges
Address
1014 Vine Street, Cincinnati, OH, USA, 45202
Kroger is one of the largest grocery retailers in the United States with more than 2,700 stores across a portfolio of over 20 supermarket banners. The company boasts an ingrained presence in US communities, citing that it is a top-two grocer in most of its major market areas. Over one fourth of Kroger's roughly $110 billion in nonperishable and fresh food sales (about 75% of revenue) stems from its private-label portfolio, of which the company manufactures about 30% of units via its 33 food production plants. The firm also operates fuel stations and pharmacies at 60% and 80% of its locations, respectively.

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