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Monro Muffler Brake Inc (NAS:MNRO)
Beneish M-Score
-2.17 (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.

Monro Muffler Brake Inc has a M-score of -2.17 signals that the company is a manipulator.

MNRO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Max: -0.12
Current: -2.17

-3.17
-0.12

During the past 13 years, the highest Beneish M-Score of Monro Muffler Brake Inc was -0.12. The lowest was -3.17. And the median was -2.69.


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 Monro Muffler Brake 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 * 1.5919+0.528 * 0.9665+0.404 * 1.034+0.892 * 1.055+0.115 * 0.9698
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0318+4.679 * -0.0601-0.327 * 0.9638
=-2.17

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $4.3 Mil.
Revenue was 229.034 + 238.942 + 239.155 + 236.52 = $943.7 Mil.
Gross Profit was 91.893 + 93.367 + 100.725 + 99.718 = $385.7 Mil.
Total Current Assets was $170.1 Mil.
Total Assets was $999.4 Mil.
Property, Plant and Equipment(Net PPE) was $351.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $39.8 Mil.
Selling, General & Admin. Expense(SGA) was $265.1 Mil.
Total Current Liabilities was $167.6 Mil.
Long-Term Debt was $269.0 Mil.
Net Income was 13.903 + 15.231 + 18.872 + 18.799 = $66.8 Mil.
Non Operating Income was -0.022 + 0.193 + 0.097 + 0.106 = $0.4 Mil.
Cash Flow from Operations was 44.763 + 36.264 + 13.856 + 31.621 = $126.5 Mil.
Accounts Receivable was $2.6 Mil.
Revenue was 219.134 + 236.553 + 221.299 + 217.507 = $894.5 Mil.
Gross Profit was 83.659 + 90.196 + 89.472 + 90.022 = $353.3 Mil.
Total Current Assets was $161.3 Mil.
Total Assets was $907.8 Mil.
Property, Plant and Equipment(Net PPE) was $326.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.7 Mil.
Selling, General & Admin. Expense(SGA) was $243.6 Mil.
Total Current Liabilities was $155.8 Mil.
Long-Term Debt was $255.7 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)
=(4.301 / 943.651) / (2.561 / 894.493)
=0.00455783 / 0.00286307
=1.5919

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)
=(353.349 / 894.493) / (385.703 / 943.651)
=0.39502713 / 0.4087348
=0.9665

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 - (170.075 + 351.582) / 999.438) / (1 - (161.342 + 326.752) / 907.794)
=0.47804966 / 0.46232956
=1.034

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
=943.651 / 894.493
=1.055

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))
=(35.721 / (35.721 + 326.752)) / (39.769 / (39.769 + 351.582))
=0.09854803 / 0.10161977
=0.9698

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)
=(265.114 / 943.651) / (243.56 / 894.493)
=0.28094497 / 0.27228832
=1.0318

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)
=((269.045 + 167.571) / 999.438) / ((255.688 + 155.793) / 907.794)
=0.43686152 / 0.45327574
=0.9638

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
=(66.805 - 0.374 - 126.504) / 999.438
=-0.0601

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.

Monro Muffler Brake Inc has a M-score of -2.17 signals that the company is likely to 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.

Monro Muffler Brake Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 1.13930.9030.89450.79020.84020.93091.45460.84720.87261.5919
GMI 1.0051.00380.98810.98221.01231.00471.05950.98740.97420.9665
AQI 1.09351.27980.94691.10631.02621.17761.26271.01211.13351.034
SGI 1.13151.05311.08361.1861.12761.07831.06621.13581.07581.055
DEPI 0.98640.99531.00390.9950.97881.0241.09670.89951.02540.9698
SGAI 1.03441.030.99840.96550.92380.96931.03660.96731.00791.0318
LVGI 0.99751.48450.91591.00870.76560.91371.51260.89261.06390.9638
TATA -0.0451-0.0427-0.0661-0.1204-0.0366-0.0559-0.0571-0.0528-0.0721-0.0601
M-score -2.41-2.77-2.81-3.03-2.58-2.62-2.30-2.72-2.85-2.17

Monro Muffler Brake Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.0530.84720.85480.94740.95580.87261.35861.3081.30851.5919
GMI 1.01770.98740.95620.95550.96410.97420.98860.98180.97620.9665
AQI 1.01341.01211.05531.1071.10281.13351.10561.07711.03121.034
SGI 1.16431.13581.09591.07631.06611.07581.08391.08461.06281.055
DEPI 0.9380.89950.96171.02131.0551.02540.98530.96750.96810.9698
SGAI 0.97040.96730.98860.98271.00031.00781.00131.01321.02291.0318
LVGI 1.01060.89260.98431.11651.07181.06391.05150.95470.95090.9638
TATA -0.0523-0.063-0.058-0.0549-0.0675-0.0721-0.0656-0.0519-0.0544-0.0601
M-score -2.52-2.77-2.80-2.73-2.77-2.85-2.36-2.33-2.39-2.17
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