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Monro Muffler Brake Inc (NAS:MNRO)
Beneish M-Score
-2.69 (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 -2.69 suggests that the company is not a manipulator.

MNRO' s 10-Year Beneish M-Score Range
Min: -3.04   Max: -1.13
Current: -2.69

-3.04
-1.13

During the past 13 years, the highest Beneish M-Score of Monro Muffler Brake Inc was -1.13. The lowest was -3.04. And the median was -2.60.


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 * 0.9474+0.528 * 0.9555+0.404 * 1.107+0.892 * 1.0763+0.115 * 1.0213
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9827+4.679 * -0.0464-0.327 * 1.1165
=-2.69

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $3.2 Mil.
Revenue was 221.299 + 217.507 + 203.244 + 216.695 = $858.7 Mil.
Gross Profit was 89.472 + 90.022 + 77.024 + 82.324 = $338.8 Mil.
Total Current Assets was $197.8 Mil.
Total Assets was $904.1 Mil.
Property, Plant and Equipment(Net PPE) was $310.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.4 Mil.
Selling, General & Admin. Expense(SGA) was $232.2 Mil.
Total Current Liabilities was $158.4 Mil.
Long-Term Debt was $279.3 Mil.
Net Income was 16.33 + 16.932 + 11.909 + 15.329 = $60.5 Mil.
Non Operating Income was 0.227 + 0.08 + 0.076 + 0.352 = $0.7 Mil.
Cash Flow from Operations was 20.57 + 34.106 + 18.91 + 28.113 = $101.7 Mil.
Accounts Receivable was $3.1 Mil.
Revenue was 205.321 + 206.172 + 195.909 + 190.437 = $797.8 Mil.
Gross Profit was 81.748 + 78.878 + 70.574 + 69.61 = $300.8 Mil.
Total Current Assets was $169.9 Mil.
Total Assets was $734.4 Mil.
Property, Plant and Equipment(Net PPE) was $274.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $30.2 Mil.
Selling, General & Admin. Expense(SGA) was $219.5 Mil.
Total Current Liabilities was $139.2 Mil.
Long-Term Debt was $179.3 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)
=(3.153 / 858.745) / (3.092 / 797.839)
=0.00367164 / 0.00387547
=0.9474

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)
=(90.022 / 797.839) / (89.472 / 858.745)
=0.37703095 / 0.39457813
=0.9555

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 - (197.815 + 310.648) / 904.091) / (1 - (169.861 + 274.201) / 734.362)
=0.43759754 / 0.39530913
=1.107

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
=858.745 / 797.839
=1.0763

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))
=(30.208 / (30.208 + 274.201)) / (33.431 / (33.431 + 310.648))
=0.09923491 / 0.09716083
=1.0213

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)
=(232.177 / 858.745) / (219.5 / 797.839)
=0.2703678 / 0.27511816
=0.9827

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)
=((279.3 + 158.407) / 904.091) / ((179.255 + 139.179) / 734.362)
=0.48414042 / 0.43361993
=1.1165

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
=(60.5 - 0.735 - 101.699) / 904.091
=-0.0464

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 -2.69 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 0.90670.73051.13930.9030.89450.79020.84020.93091.45460.8472
GMI 1.01331.01141.0051.00380.98810.98221.01231.00471.05950.9874
AQI 1.23091.22171.06411.28080.94691.10631.02621.17761.26271.0121
SGI 1.20741.09281.13151.05311.08361.1861.12761.07831.06621.1358
DEPI 0.87430.89130.98640.99531.00390.9950.97881.0241.09670.8995
SGAI 1.0010.96561.03441.030.99840.96550.92380.96931.03660.9673
LVGI 0.87620.86991.02931.46890.91591.00870.76560.91371.51260.8926
TATA -0.0614-0.0468-0.0451-0.0472-0.0639-0.1207-0.0366-0.0559-0.0571-0.0528
M-score -2.54-2.73-2.43-2.79-2.80-3.04-2.58-2.62-2.30-2.72

Monro Muffler Brake Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.00931.04351.06341.45461.05821.05121.0530.84720.85480.9474
GMI 1.02941.04131.04891.05951.05441.04021.01770.98740.95620.9555
AQI 1.15731.14351.24861.26271.07811.10161.01341.01211.05531.107
SGI 1.07411.06071.06341.06621.1131.14941.16431.13581.09591.0763
DEPI 1.03741.0271.08761.09671.03721.02040.9260.89950.96171.0213
SGAI 0.97980.99961.03131.03921.00970.99080.97040.96730.98860.9827
LVGI 1.02681.06311.40561.51261.18151.21541.01060.89260.98431.1165
TATA -0.0386-0.0472-0.0451-0.0569-0.0782-0.0756-0.0608-0.0528-0.0481-0.0464
M-score -2.51-2.54-2.58-2.29-2.69-2.66-2.56-2.72-2.75-2.69
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