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Monro Muffler Brake Inc (NAS:MNRO)
Beneish M-Score
-2.33 (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 -2.33 suggests that the company is not a manipulator.

MNRO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Max: -0.12
Current: -2.33

-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 -2.59.


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 * 1.308+0.528 * 0.9818+0.404 * 1.0771+0.892 * 1.0846+0.115 * 0.9675
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0132+4.679 * -0.0519-0.327 * 0.9547
=-2.33

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $4.5 Mil.
Revenue was 239.155 + 236.52 + 219.134 + 236.553 = $931.4 Mil.
Gross Profit was 100.725 + 99.718 + 83.659 + 90.196 = $374.3 Mil.
Total Current Assets was $184.3 Mil.
Total Assets was $997.8 Mil.
Property, Plant and Equipment(Net PPE) was $343.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $38.3 Mil.
Selling, General & Admin. Expense(SGA) was $255.1 Mil.
Total Current Liabilities was $155.9 Mil.
Long-Term Debt was $305.3 Mil.
Net Income was 18.872 + 18.799 + 12.551 + 15.986 = $66.2 Mil.
Non Operating Income was 0.097 + 0.106 + 0.097 + 0.506 = $0.8 Mil.
Cash Flow from Operations was 13.856 + 31.621 + 37.733 + 33.94 = $117.2 Mil.
Accounts Receivable was $3.2 Mil.
Revenue was 221.299 + 217.507 + 203.244 + 216.695 = $858.7 Mil.
Gross Profit was 89.472 + 90.022 + 77.024 + 82.324 = $338.8 Mil.
Total Current Assets was $197.8 Mil.
Total Assets was $904.1 Mil.
Property, Plant and Equipment(Net PPE) was $310.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.4 Mil.
Selling, General & Admin. Expense(SGA) was $232.2 Mil.
Total Current Liabilities was $158.4 Mil.
Long-Term Debt was $279.3 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)
=(4.473 / 931.362) / (3.153 / 858.745)
=0.00480264 / 0.00367164
=1.308

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)
=(99.718 / 858.745) / (100.725 / 931.362)
=0.39457813 / 0.4018824
=0.9818

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 - (184.304 + 343.214) / 997.819) / (1 - (197.815 + 310.648) / 904.091)
=0.47132897 / 0.43759754
=1.0771

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
=931.362 / 858.745
=1.0846

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))
=(33.431 / (33.431 + 310.648)) / (38.313 / (38.313 + 343.214))
=0.09716083 / 0.10042015
=0.9675

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)
=(255.14 / 931.362) / (232.177 / 858.745)
=0.27394289 / 0.2703678
=1.0132

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)
=((305.322 + 155.879) / 997.819) / ((279.3 + 158.407) / 904.091)
=0.46220908 / 0.48414042
=0.9547

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
=(66.208 - 0.806 - 117.15) / 997.819
=-0.0519

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 -2.33 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.

Monro Muffler Brake Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 0.73051.13930.9030.89450.79020.84020.93091.45460.84720.8726
GMI 1.01141.0051.00380.98810.98221.01231.00471.05950.98740.9742
AQI 1.18971.09351.27980.94691.10631.02621.17761.26271.01211.0959
SGI 1.09281.13151.05311.08361.1861.12761.07831.06621.13581.0758
DEPI 0.89130.98640.99531.00390.9950.99541.00691.09670.89951.0254
SGAI 0.96561.03441.03140.9970.96550.9350.95771.03660.96731.0079
LVGI 0.88820.99751.48450.91591.00870.76560.91371.51260.89261.0639
TATA -0.0448-0.045-0.0427-0.0639-0.1207-0.045-0.0559-0.0571-0.0528-0.0721
M-score -2.74-2.41-2.77-2.80-3.04-2.62-2.62-2.30-2.72-2.86

Monro Muffler Brake Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.05121.0530.84720.85480.94740.95580.87261.35861.3081.3085
GMI 1.04021.01770.98740.95620.95550.96410.97420.98860.98180.9762
AQI 1.10161.01341.01211.05531.1071.10281.09591.10561.07711.0312
SGI 1.14941.16431.13581.09591.07631.06611.07581.08391.08461.0628
DEPI 1.030.9380.89950.96171.02131.0551.02540.98530.96750.9681
SGAI 0.99080.97040.96730.98860.98271.00031.00781.00131.01321.0229
LVGI 1.21541.01060.89260.98431.11651.07181.06391.05150.95470.9509
TATA -0.0756-0.0599-0.0534-0.0487-0.0469-0.0533-0.0721-0.0656-0.0519-0.0544
M-score -2.66-2.56-2.72-2.75-2.69-2.71-2.86-2.36-2.33-2.39
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