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Monro Muffler Brake Inc (NAS:MNRO)
Beneish M-Score
-1.33 (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 -1.33 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: -1.33

-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 -2.58.


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 * 2.6003+0.528 * 0.9996+0.404 * 1.0644+0.892 * 1.0237+0.115 * 1.002
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0231+4.679 * -0.0747-0.327 * 1.0569
=-1.33

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $11.9 Mil.
Revenue was 248.584 + 236.894 + 229.034 + 238.942 = $953.5 Mil.
Gross Profit was 99.997 + 98.068 + 91.893 + 93.367 = $383.3 Mil.
Total Current Assets was $201.0 Mil.
Total Assets was $1,153.7 Mil.
Property, Plant and Equipment(Net PPE) was $373.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $41.6 Mil.
Selling, General & Admin. Expense(SGA) was $267.2 Mil.
Total Current Liabilities was $180.0 Mil.
Long-Term Debt was $383.6 Mil.
Net Income was 17.544 + 16.755 + 13.903 + 15.231 = $63.4 Mil.
Non Operating Income was 0.126 + 0.154 + -0.022 + 0.193 = $0.5 Mil.
Cash Flow from Operations was 46.437 + 21.709 + 44.763 + 36.264 = $149.2 Mil.
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.



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)
=(11.907 / 953.454) / (4.473 / 931.362)
=0.01248828 / 0.00480264
=2.6003

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)
=(374.298 / 931.362) / (383.325 / 953.454)
=0.4018824 / 0.40203827
=0.9996

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 - (200.998 + 373.906) / 1153.704) / (1 - (184.304 + 343.214) / 997.819)
=0.50168847 / 0.47132897
=1.0644

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
=953.454 / 931.362
=1.0237

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))
=(38.313 / (38.313 + 343.214)) / (41.648 / (41.648 + 373.906))
=0.10042015 / 0.10022284
=1.002

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)
=(267.222 / 953.454) / (255.146 / 931.362)
=0.28026732 / 0.27394933
=1.0231

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)
=((383.594 + 180) / 1153.704) / ((305.322 + 155.879) / 997.819)
=0.48850832 / 0.46220908
=1.0569

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
=(63.433 - 0.451 - 149.173) / 1153.704
=-0.0747

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 -1.33 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 local exchange's 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 0.98640.99531.00390.9950.99541.00691.09670.89951.02540.9698
SGAI 1.03441.03140.9970.96550.9350.95771.03660.96731.00791.0318
LVGI 0.99751.48450.91591.00870.76560.91371.51260.89261.06390.9638
TATA -0.045-0.0427-0.066-0.1207-0.045-0.0559-0.0571-0.0528-0.0721-0.0601
M-score -2.41-2.77-2.81-3.04-2.62-2.62-2.30-2.72-2.85-2.17

Monro Muffler Brake Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.85480.94740.95580.87261.35861.3081.30851.59191.42322.6003
GMI 0.95620.95550.96410.97420.98860.98180.97620.96650.97690.9996
AQI 1.05531.1071.10281.13351.10561.07711.03121.0341.09281.0644
SGI 1.09591.07631.06611.07581.08391.08461.06281.0551.03341.0237
DEPI 0.96171.02131.0551.02540.98530.96750.96810.96980.99551.002
SGAI 0.98860.98271.00031.00781.00131.01321.02291.03181.03261.0231
LVGI 0.98431.11651.07181.06391.05150.95470.95090.96381.02851.0569
TATA -0.058-0.0549-0.0675-0.0721-0.0656-0.0519-0.0544-0.0601-0.0495-0.0747
M-score -2.80-2.73-2.77-2.85-2.36-2.33-2.39-2.17-2.28-1.33
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