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Monro Muffler Brake Inc (NAS:MNRO)
Beneish M-Score
-2.39 (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 -2.39 suggests that the company is not a manipulator.

MNRO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17   Max: -0.12
Current: -2.39

-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 * 1.3085+0.528 * 0.9762+0.404 * 1.0312+0.892 * 1.0628+0.115 * 0.9681
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0229+4.679 * -0.0544-0.327 * 0.9509
=-2.39

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $4.5 Mil.
Revenue was 238.942 + 239.155 + 236.52 + 219.134 = $933.8 Mil.
Gross Profit was 93.367 + 100.725 + 99.718 + 83.659 = $377.5 Mil.
Total Current Assets was $189.8 Mil.
Total Assets was $1,002.6 Mil.
Property, Plant and Equipment(Net PPE) was $349.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $39.0 Mil.
Selling, General & Admin. Expense(SGA) was $259.8 Mil.
Total Current Liabilities was $161.3 Mil.
Long-Term Debt was $289.2 Mil.
Net Income was 15.231 + 18.872 + 18.799 + 12.551 = $65.5 Mil.
Non Operating Income was 0.193 + 0.097 + 0.106 + 0.097 = $0.5 Mil.
Cash Flow from Operations was 36.264 + 13.856 + 31.621 + 37.733 = $119.5 Mil.
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.



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)
=(4.475 / 933.751) / (3.218 / 878.603)
=0.0047925 / 0.00366263
=1.3085

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)
=(100.725 / 878.603) / (93.367 / 933.751)
=0.39461964 / 0.40425017
=0.9762

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 - (189.787 + 349.084) / 1002.619) / (1 - (184.594 + 316.832) / 909.291)
=0.46253662 / 0.44855277
=1.0312

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
=933.751 / 878.603
=1.0628

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))
=(34.105 / (34.105 + 316.832)) / (38.951 / (38.951 + 349.084))
=0.09718269 / 0.10038012
=0.9681

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)
=(259.835 / 933.751) / (239.016 / 878.603)
=0.27827012 / 0.27204096
=1.0229

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)
=((289.214 + 161.316) / 1002.619) / ((274.297 + 155.372) / 909.291)
=0.44935314 / 0.4725319
=0.9509

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
=(65.453 - 0.493 - 119.474) / 1002.619
=-0.0544

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 -2.39 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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 0.73051.13930.9030.89450.79020.84020.93091.45460.84720.8726
GMI 1.01141.0051.00380.98810.98221.01231.00471.05950.98740.9742
AQI 1.18971.09351.27980.94691.10631.02621.17761.26271.01211.0959
SGI 1.09281.13151.05311.08361.1861.12761.07831.06621.13581.0758
DEPI 0.89130.98640.99531.00390.9950.99541.00691.09670.89951.0254
SGAI 0.96561.03441.03140.9970.96550.9350.95771.03660.96731.0079
LVGI 0.88820.99751.48450.91591.00870.76560.91371.51260.89261.0639
TATA -0.0448-0.045-0.0427-0.0639-0.1207-0.045-0.0559-0.0571-0.0528-0.0721
M-score -2.74-2.41-2.77-2.80-3.04-2.62-2.62-2.30-2.72-2.86

Monro Muffler Brake Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.05121.0530.84720.85480.94740.95580.87261.35861.3081.3085
GMI 1.04021.01770.98740.95620.95550.96410.97420.98860.98180.9762
AQI 1.10161.01341.01211.05531.1071.10281.09591.10561.07711.0312
SGI 1.14941.16431.13581.09591.07631.06611.07581.08391.08461.0628
DEPI 1.030.9380.89950.96171.02131.0551.02540.98530.96750.9681
SGAI 0.99080.97040.96730.98860.98271.00031.00781.00131.01321.0229
LVGI 1.21541.01060.89260.98431.11651.07181.06391.05150.95470.9509
TATA -0.0756-0.0599-0.0534-0.0487-0.0469-0.0533-0.0721-0.0656-0.0519-0.0544
M-score -2.66-2.56-2.72-2.75-2.69-2.71-2.86-2.36-2.33-2.39
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