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Monro Muffler Brake Inc (NAS:MNRO)
Beneish M-Score
-2.56 (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 -2.56 suggests that the company is not a manipulator.

MNRO' s 10-Year Beneish M-Score Range
Min: -3.17   Max: 2.34
Current: -2.56

-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 -2.57.


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 * 1.0501+0.528 * 1.0177+0.404 * 1.0134+0.892 * 1.1643+0.115 * 0.938
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9704+4.679 * -0.0603-0.327 * 1.0106
=-2.56

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
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.
Net Income was 15.329 + 13.65 + 13.572 + 8.127 = $50.7 Mil.
Non Operating Income was 0.352 + -0.179 + 0.052 + 0.082 = $0.3 Mil.
Cash Flow from Operations was 28.113 + 13.387 + 33.533 + 21.264 = $96.3 Mil.
Accounts Receivable was $2.6 Mil.
Revenue was 190.437 + 176.475 + 169.175 + 171.745 = $707.8 Mil.
Gross Profit was 69.61 + 69.851 + 68.112 + 66.493 = $274.1 Mil.
Total Current Assets was $160.5 Mil.
Total Assets was $669.9 Mil.
Property, Plant and Equipment(Net PPE) was $240.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.6 Mil.
Selling, General & Admin. Expense(SGA) was $198.4 Mil.
Total Current Liabilities was $122.6 Mil.
Long-Term Debt was $169.6 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)
=(3.158 / 824.097) / (2.583 / 707.832)
=0.00383207 / 0.00364917
=1.0501

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)
=(81.748 / 707.832) / (82.324 / 824.097)
=0.38719075 / 0.38044551
=1.0177

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 - (173.043 + 278.657) / 761.399) / (1 - (160.511 + 240.482) / 669.864)
=0.40674994 / 0.40138147
=1.0134

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
=824.097 / 707.832
=1.1643

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))
=(25.589 / (25.589 + 240.482)) / (31.833 / (31.833 + 278.657))
=0.09617358 / 0.10252504
=0.938

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)
=(224.116 / 824.097) / (198.373 / 707.832)
=0.27195342 / 0.28025435
=0.9704

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)
=((193.132 + 142.542) / 761.399) / ((169.618 + 122.591) / 669.864)
=0.44086478 / 0.43622138
=1.0106

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
=(50.678 - 0.307 - 96.297) / 761.399
=-0.0603

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 -2.56 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

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
DSRI 0.95870.90670.73051.13936.45190.98640.66340.93211.01471.4636
GMI 0.99671.00661.01141.0051.00380.98810.98221.01231.00471.0595
AQI 2.48841.12841.18971.09351.27980.94691.10631.02621.17761.2077
SGI 1.08311.20741.09281.13151.05311.08361.1861.12761.07831.0662
DEPI 1.06850.94970.89130.98640.99531.00390.9950.99541.00691.0815
SGAI 0.96511.0010.96561.03441.03140.9970.96550.9350.95771.0366
LVGI 1.11280.88420.88820.99751.48450.91591.00870.76560.91371.4393
TATA -0.0627-0.0614-0.0448-0.045-0.0427-0.0639-0.1207-0.045-0.0559-0.0593
M-score -2.16-2.58-2.74-2.412.33-2.72-3.15-2.53-2.55-2.30

Monro Muffler Brake Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.25211.18561.01471.00931.14930.93821.46361.05821.02931.0501
GMI 0.980.98951.00461.02941.04131.04891.05951.05441.04021.0177
AQI 1.16391.1681.17761.15731.14351.24861.20771.07811.10161.0134
SGI 1.0551.05141.07831.07411.06071.06341.06621.1131.14941.1643
DEPI 1.01841.03181.00691.01150.99111.04161.08151.04151.030.938
SGAI 0.98610.97070.96220.97680.99361.02511.03661.00820.99080.9704
LVGI 0.87570.89470.91371.02681.06311.40561.43931.18151.21541.0106
TATA -0.0476-0.0601-0.0555-0.0393-0.0469-0.0448-0.0589-0.0778-0.0751-0.0603
M-score -2.32-2.44-2.55-2.51-2.45-2.70-2.30-2.69-2.67-2.56
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