Switch to:
Monro Muffler Brake Inc (NAS:MNRO)
Beneish M-Score
-2.87 (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 -2.87 suggests that the company is not a manipulator.

MNRO' s 10-Year Beneish M-Score Range
Min: -3.17   Max: 2.34
Current: -2.87

-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 -2.64.


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 * 0.676+0.528 * 0.9874+0.404 * 1.0121+0.892 * 1.1358+0.115 * 0.8995
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9673+4.679 * -0.0524-0.327 * 0.8926
=-2.87

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $12.2 Mil.
Revenue was 203.244 + 216.695 + 205.321 + 206.172 = $831.4 Mil.
Gross Profit was 77.024 + 82.324 + 81.748 + 78.878 = $320.0 Mil.
Total Current Assets was $168.1 Mil.
Total Assets was $760.0 Mil.
Property, Plant and Equipment(Net PPE) was $281.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.7 Mil.
Selling, General & Admin. Expense(SGA) was $224.6 Mil.
Total Current Liabilities was $136.7 Mil.
Long-Term Debt was $187.0 Mil.
Net Income was 11.909 + 15.329 + 13.65 + 13.572 = $54.5 Mil.
Non Operating Income was 0.076 + 0.352 + -0.179 + 0.052 = $0.3 Mil.
Cash Flow from Operations was 18.91 + 28.113 + 13.387 + 33.533 = $93.9 Mil.
Accounts Receivable was $15.8 Mil.
Revenue was 195.909 + 190.437 + 176.475 + 169.175 = $732.0 Mil.
Gross Profit was 70.574 + 69.61 + 69.851 + 68.112 = $278.1 Mil.
Total Current Assets was $166.4 Mil.
Total Assets was $739.4 Mil.
Property, Plant and Equipment(Net PPE) was $275.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.5 Mil.
Selling, General & Admin. Expense(SGA) was $204.4 Mil.
Total Current Liabilities was $138.1 Mil.
Long-Term Debt was $214.8 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)
=(12.157 / 831.432) / (15.833 / 731.996)
=0.01462176 / 0.0216299
=0.676

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)
=(82.324 / 731.996) / (77.024 / 831.432)
=0.37998432 / 0.38484687
=0.9874

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 - (168.116 + 281.883) / 759.956) / (1 - (166.41 + 275.046) / 739.433)
=0.40786177 / 0.40298039
=1.0121

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
=831.432 / 731.996
=1.1358

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))
=(27.5 / (27.5 + 275.046)) / (31.688 / (31.688 + 281.883))
=0.09089527 / 0.10105526
=0.8995

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)
=(224.627 / 831.432) / (204.442 / 731.996)
=0.27016882 / 0.27929388
=0.9673

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)
=((187.04 + 136.741) / 759.956) / ((214.809 + 138.13) / 739.433)
=0.4260523 / 0.47731032
=0.8926

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
=(54.46 - 0.301 - 93.943) / 759.956
=-0.0524

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 -2.87 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 0.90670.73051.13936.45190.98640.66340.93211.01471.0158
GMI 1.00661.01141.0051.00380.98810.98221.01231.00471.0595
AQI 1.12841.18971.09351.27980.94691.10631.02621.17761.2627
SGI 1.20741.09281.13151.05311.08361.1861.12761.07831.0662
DEPI 0.94970.89130.98640.99531.00390.9950.99541.00691.0967
SGAI 1.0010.96561.03441.03140.9970.96550.9350.95771.0366
LVGI 0.88420.88820.99751.48450.91591.00870.76560.91371.5126
TATA -0.0614-0.0448-0.045-0.0427-0.0639-0.1207-0.045-0.0559-0.0571
M-score -2.58-2.74-2.412.33-2.72-3.15-2.53-2.55-2.70

Monro Muffler Brake Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.18561.01471.00931.14930.93821.01581.05821.02931.05010.676
GMI 0.98951.00461.02941.04131.04891.05951.05441.04021.01770.9874
AQI 1.1681.17761.15731.14351.24861.26271.07811.10161.01341.0121
SGI 1.05141.07831.07411.06071.06341.06621.1131.14941.16431.1358
DEPI 1.03181.00691.01150.99111.04161.09671.04151.030.9380.8995
SGAI 0.97070.96220.97680.99361.02511.03661.00820.99080.97040.9673
LVGI 0.89470.91371.02681.06311.40561.51261.18151.21541.01060.8926
TATA -0.0601-0.0555-0.0393-0.0469-0.0448-0.0567-0.0778-0.0751-0.0603-0.0524
M-score -2.44-2.55-2.51-2.45-2.70-2.70-2.69-2.67-2.56-2.87
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
Email Hide