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Monro Muffler Brake Inc (NAS:MNRO)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

MNRO' s 10-Year Beneish M-Score Range
Min: -3.17   Max: 2.34
Current: -2.75

-3.17
2.34

During the past 13 years, the highest Beneish M-Score of Monro Muffler Brake Inc was 2.34. The lowest was -3.17. And the median was -2.58.


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 * 0.8548+0.528 * 0.9562+0.404 * 1.0553+0.892 * 1.0959+0.115 * 0.9617
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9886+4.679 * -0.0476-0.327 * 0.9843
=-2.75

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $2.8 Mil.
Revenue was 217.507 + 203.244 + 216.695 + 205.321 = $842.8 Mil.
Gross Profit was 90.022 + 77.024 + 82.324 + 81.748 = $331.1 Mil.
Total Current Assets was $168.6 Mil.
Total Assets was $777.6 Mil.
Property, Plant and Equipment(Net PPE) was $290.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.3 Mil.
Selling, General & Admin. Expense(SGA) was $229.5 Mil.
Total Current Liabilities was $142.2 Mil.
Long-Term Debt was $184.4 Mil.
Net Income was 16.932 + 11.909 + 15.329 + 13.65 = $57.8 Mil.
Non Operating Income was 0.08 + 0.076 + 0.352 + -0.179 = $0.3 Mil.
Cash Flow from Operations was 34.106 + 18.91 + 28.113 + 13.387 = $94.5 Mil.
Accounts Receivable was $3.0 Mil.
Revenue was 206.172 + 195.909 + 190.437 + 176.475 = $769.0 Mil.
Gross Profit was 78.878 + 70.574 + 69.61 + 69.851 = $288.9 Mil.
Total Current Assets was $159.7 Mil.
Total Assets was $703.6 Mil.
Property, Plant and Equipment(Net PPE) was $271.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $28.8 Mil.
Selling, General & Admin. Expense(SGA) was $211.8 Mil.
Total Current Liabilities was $139.0 Mil.
Long-Term Debt was $161.1 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)
=(2.774 / 842.767) / (2.961 / 768.993)
=0.00329154 / 0.00385049
=0.8548

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)
=(77.024 / 768.993) / (90.022 / 842.767)
=0.37570303 / 0.39289388
=0.9562

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 - (168.602 + 290.77) / 777.638) / (1 - (159.743 + 270.983) / 703.613)
=0.4092727 / 0.38783678
=1.0553

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
=842.767 / 768.993
=1.0959

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))
=(28.844 / (28.844 + 270.983)) / (32.318 / (32.318 + 290.77))
=0.09620214 / 0.10002848
=0.9617

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)
=(229.469 / 842.767) / (211.789 / 768.993)
=0.27228048 / 0.27541083
=0.9886

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)
=((184.38 + 142.155) / 777.638) / ((161.135 + 139.019) / 703.613)
=0.41990618 / 0.42658962
=0.9843

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
=(57.82 - 0.329 - 94.516) / 777.638
=-0.0476

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 -2.75 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 0.90670.73051.13936.45190.98640.66340.93211.01471.01580.676
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 -2.58-2.74-2.412.33-2.72-3.15-2.53-2.55-2.70-2.88

Monro Muffler Brake Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.01471.00931.14930.93821.01581.05821.02931.05010.6760.8548
GMI 1.00461.02941.04131.04891.05951.05441.04021.01770.98740.9562
AQI 1.17761.15731.14351.24861.26271.07811.10161.01341.01211.0553
SGI 1.07831.07411.06071.06341.06621.1131.14941.16431.13581.0959
DEPI 1.00691.01150.99111.04161.09671.04151.030.9380.89950.9617
SGAI 0.96220.97680.99361.02511.03661.00820.99080.97040.96730.9886
LVGI 0.91371.02681.06311.40561.51261.18151.21541.01060.89260.9843
TATA -0.0555-0.0393-0.0469-0.0448-0.0567-0.0778-0.0751-0.0603-0.0524-0.0476
M-score -2.55-2.51-2.45-2.70-2.70-2.69-2.67-2.56-2.87-2.75
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