Switch to:
Mueller Industries Inc (NYSE:MLI)
Beneish M-Score
-2.82 (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.

Mueller Industries Inc has a M-score of -2.82 suggests that the company is not a manipulator.

MLI' s 10-Year Beneish M-Score Range
Min: -4.05   Max: -1.43
Current: -2.82

-4.05
-1.43

During the past 13 years, the highest Beneish M-Score of Mueller Industries Inc was -1.43. The lowest was -4.05. And the median was -2.49.


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 Mueller Industries 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 * 0.8387+0.528 * 0.9881+0.404 * 0.9698+0.892 * 0.9966+0.115 * 1.0394
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.043+4.679 * -0.045-0.327 * 0.8773
=-2.82

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $307 Mil.
Revenue was 555.593 + 537.242 + 537.342 + 602.82 = $2,233 Mil.
Gross Profit was 85.228 + 76.408 + 68.453 + 81.542 = $312 Mil.
Total Current Assets was $931 Mil.
Total Assets was $1,345 Mil.
Property, Plant and Equipment(Net PPE) was $261 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General & Admin. Expense(SGA) was $141 Mil.
Total Current Liabilities was $210 Mil.
Long-Term Debt was $205 Mil.
Net Income was 33.651 + 21.978 + 17.986 + 23.823 = $97 Mil.
Non Operating Income was 0.265 + 0.105 + -1.256 + 0.225 = $-1 Mil.
Cash Flow from Operations was 13.26 + 3.89 + 86.401 + 55.085 = $159 Mil.
Accounts Receivable was $367 Mil.
Revenue was 649.691 + 574.374 + 487.715 + 528.854 = $2,241 Mil.
Gross Profit was 91.916 + 78.597 + 65.903 + 72.552 = $309 Mil.
Total Current Assets was $946 Mil.
Total Assets was $1,350 Mil.
Property, Plant and Equipment(Net PPE) was $245 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General & Admin. Expense(SGA) was $136 Mil.
Total Current Liabilities was $268 Mil.
Long-Term Debt was $206 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)
=(307.008 / 2232.997) / (367.299 / 2240.634)
=0.13748697 / 0.16392637
=0.8387

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)
=(76.408 / 2240.634) / (85.228 / 2232.997)
=0.13789311 / 0.13955729
=0.9881

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 - (930.772 + 261.149) / 1344.958) / (1 - (946.046 + 245.441) / 1349.858)
=0.11378571 / 0.11732419
=0.9698

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
=2232.997 / 2240.634
=0.9966

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))
=(32.585 / (32.585 + 245.441)) / (33.188 / (33.188 + 261.149))
=0.11720127 / 0.11275511
=1.0394

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)
=(141.426 / 2232.997) / (136.06 / 2240.634)
=0.06333461 / 0.06072388
=1.043

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)
=((204.75 + 209.501) / 1344.958) / ((205.75 + 268.153) / 1349.858)
=0.30800293 / 0.35107619
=0.8773

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
=(97.438 - -0.661 - 158.636) / 1344.958
=-0.045

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.

Mueller Industries Inc has a M-score of -2.82 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 own currency.

Mueller Industries Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.98320.78131.06730.71511.72680.88420.79111.19711.01740.9238
GMI 1.10211.0841.15671.08710.89351.02871.10720.95860.94921.0131
AQI 0.93720.83320.98810.92380.80170.90850.93411.28860.91991.03
SGI 1.25441.45151.07440.94830.60481.33131.17380.90580.98571.0953
DEPI 0.91971.00150.93030.90370.97960.95190.97621.2881.01670.9699
SGAI 0.95450.76240.9461.00741.40930.84480.88271.07861.03050.9409
LVGI 1.00020.87090.95810.71570.95030.96960.97751.53830.8080.9788
TATA -0.02620.0672-0.0549-0.0943-0.06140.0258-0.0515-0.02320.03250.0089
M-score -2.36-1.90-2.52-3.13-2.64-2.16-2.70-2.55-2.32-2.39

Mueller Industries Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.04991.06351.20021.01741.0261.15830.99840.92380.89910.8387
GMI 0.97840.93810.95760.94920.93220.9660.99021.01311.00320.9881
AQI 1.33841.11560.77330.91991.10621.151.31631.030.87430.9698
SGI 0.94110.96050.99890.98571.00061.03731.06431.09531.07080.9966
DEPI 1.1911.14850.98641.01671.03211.01911.05360.96990.96991.0394
SGAI 1.06561.05331.03561.03051.02350.97970.96270.94090.96091.043
LVGI 1.43071.89480.88770.8080.8050.950.92440.97880.94140.8773
TATA -0.02690.00550.05160.03250.0560.06390.02750.0089-0.0298-0.045
M-score -2.62-2.70-2.14-2.32-2.12-1.94-2.14-2.39-2.68-2.82
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)

GuruFocus Premium Plus Membership

FEEDBACK