Switch to:
Monro Muffler Brake Inc (NAS:MNRO)
Beneish M-Score
-2.69 (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 -2.70 suggests that the company is not a manipulator.

MNRO' s 10-Year Beneish M-Score Range
Min: -3.17   Max: -0.12
Current: -2.69

-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 * 0.9558+0.528 * 0.9641+0.404 * 1.1028+0.892 * 1.0661+0.115 * 1.055
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0003+4.679 * -0.0521-0.327 * 1.0718
=-2.70

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $3.2 Mil.
Revenue was 236.553 + 221.299 + 217.507 + 203.244 = $878.6 Mil.
Gross Profit was 90.196 + 89.472 + 90.022 + 77.024 = $346.7 Mil.
Total Current Assets was $184.6 Mil.
Total Assets was $909.3 Mil.
Property, Plant and Equipment(Net PPE) was $316.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.1 Mil.
Selling, General & Admin. Expense(SGA) was $239.0 Mil.
Total Current Liabilities was $155.4 Mil.
Long-Term Debt was $274.3 Mil.
Net Income was 15.986 + 16.33 + 16.932 + 11.909 = $61.2 Mil.
Non Operating Income was -0.506 + 0.227 + 0.08 + 1.242 = $1.0 Mil.
Cash Flow from Operations was 33.94 + 20.57 + 34.106 + 18.91 = $107.5 Mil.
Accounts Receivable was $3.2 Mil.
Revenue was 216.695 + 205.321 + 206.172 + 195.909 = $824.1 Mil.
Gross Profit was 82.324 + 81.748 + 78.878 + 70.574 = $313.5 Mil.
Total Current Assets was $173.0 Mil.
Total Assets was $761.4 Mil.
Property, Plant and Equipment(Net PPE) was $278.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.8 Mil.
Selling, General & Admin. Expense(SGA) was $224.1 Mil.
Total Current Liabilities was $142.5 Mil.
Long-Term Debt was $193.1 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)
=(3.218 / 878.603) / (3.158 / 824.097)
=0.00366263 / 0.00383207
=0.9558

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)
=(89.472 / 824.097) / (90.196 / 878.603)
=0.38044551 / 0.39461964
=0.9641

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 - (184.594 + 316.832) / 909.291) / (1 - (173.043 + 278.657) / 761.399)
=0.44855277 / 0.40674994
=1.1028

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
=878.603 / 824.097
=1.0661

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))
=(31.833 / (31.833 + 278.657)) / (34.105 / (34.105 + 316.832))
=0.10252504 / 0.09718269
=1.055

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)
=(239.016 / 878.603) / (224.116 / 824.097)
=0.27204096 / 0.27195342
=1.0003

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)
=((274.297 + 155.372) / 909.291) / ((193.132 + 142.542) / 761.399)
=0.4725319 / 0.44086478
=1.0718

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
=(61.157 - 1.043 - 107.526) / 909.291
=-0.0521

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 -2.70 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 0.90670.73051.13930.9030.89450.79020.84020.93091.45460.8472
GMI 1.00661.01141.0051.00380.98810.98221.01231.00471.05950.9874
AQI 1.12841.18971.09351.27980.94691.10631.02621.17761.26271.0121
SGI 1.20741.09281.13151.05311.08361.1861.12761.07831.06621.1358
DEPI 0.94970.89130.98640.99531.00390.9950.99541.00691.09670.8995
SGAI 1.0010.96561.03441.03140.9970.96550.9350.95771.03660.9673
LVGI 0.88420.88820.99751.48450.91591.00870.76560.91371.51260.8926
TATA -0.0614-0.0448-0.045-0.0427-0.0639-0.1207-0.045-0.0559-0.0571-0.0528
M-score -2.58-2.74-2.41-2.77-2.80-3.04-2.62-2.62-2.30-2.72

Monro Muffler Brake Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.04351.06341.45461.05821.05121.0530.84720.85480.94740.9558
GMI 1.04131.04891.05951.05441.04021.01770.98740.95620.95550.9641
AQI 1.14351.24861.26271.07811.10161.01341.01211.05531.1071.1028
SGI 1.06071.06341.06621.1131.14941.16431.13581.09591.07631.0661
DEPI 0.99111.04161.09671.04151.030.9380.89950.96171.02131.055
SGAI 0.99361.02511.03661.00820.99080.97040.96730.98860.98271.0003
LVGI 1.06311.40561.51261.18151.21541.01060.89260.98431.11651.0718
TATA -0.0469-0.0448-0.0567-0.0778-0.0756-0.0599-0.0534-0.0487-0.0469-0.0521
M-score -2.55-2.58-2.29-2.69-2.66-2.56-2.72-2.75-2.69-2.70
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)
Free 7-day Trial
FEEDBACK