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MWI Veterinary Supply Inc (NAS:MWIV)
Beneish M-Score
-2.25 (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.

MWI Veterinary Supply Inc has a M-score of -2.25 suggests that the company is not a manipulator.

MWIV' s 10-Year Beneish M-Score Range
Min: -2.47   Max: -1.82
Current: -2.25

-2.47
-1.82

During the past 13 years, the highest Beneish M-Score of MWI Veterinary Supply Inc was -1.82. The lowest was -2.47. And the median was -2.17.


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 MWI Veterinary Supply 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 * 1.091+0.528 * 1.0159+0.404 * 0.7891+0.892 * 1.1686+0.115 * 1.0845
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9929+4.679 * 0.0217-0.327 * 1.1226
=-2.25

* 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 $387 Mil.
Revenue was 721.272 + 687.259 + 605.08 + 606.443 = $2,620 Mil.
Gross Profit was 91.06 + 89.088 + 75.219 + 77.511 = $333 Mil.
Total Current Assets was $812 Mil.
Total Assets was $985 Mil.
Property, Plant and Equipment(Net PPE) was $47 Mil.
Depreciation, Depletion and Amortization(DDA) was $11 Mil.
Selling, General & Admin. Expense(SGA) was $215 Mil.
Total Current Liabilities was $506 Mil.
Long-Term Debt was $0 Mil.
Net Income was 16.776 + 18.439 + 14.217 + 16.781 = $66 Mil.
Non Operating Income was 0.237 + 0.301 + 0.252 + 0.229 = $1 Mil.
Cash Flow from Operations was 2.821 + -10.673 + -3.021 + 54.699 = $44 Mil.
Accounts Receivable was $304 Mil.
Revenue was 563.114 + 572.848 + 551.406 + 554.669 = $2,242 Mil.
Gross Profit was 74.679 + 76.929 + 68.265 + 69.519 = $289 Mil.
Total Current Assets was $582 Mil.
Total Assets was $739 Mil.
Property, Plant and Equipment(Net PPE) was $37 Mil.
Depreciation, Depletion and Amortization(DDA) was $10 Mil.
Selling, General & Admin. Expense(SGA) was $186 Mil.
Total Current Liabilities was $338 Mil.
Long-Term Debt was $0 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)
=(387.034 / 2620.054) / (303.555 / 2242.037)
=0.14771986 / 0.1353925
=1.091

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)
=(89.088 / 2242.037) / (91.06 / 2620.054)
=0.12907548 / 0.12705005
=1.0159

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 - (812.049 + 47.148) / 984.874) / (1 - (582.099 + 37.348) / 738.943)
=0.12760719 / 0.16171207
=0.7891

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
=2620.054 / 2242.037
=1.1686

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))
=(9.503 / (9.503 + 37.348)) / (10.847 / (10.847 + 47.148))
=0.20283452 / 0.18703336
=1.0845

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)
=(215.407 / 2620.054) / (185.652 / 2242.037)
=0.08221472 / 0.08280506
=0.9929

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)
=((0.003 + 506.114) / 984.874) / ((0.039 + 338.233) / 738.943)
=0.5138901 / 0.4577782
=1.1226

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
=(66.213 - 1.019 - 43.826) / 984.874
=0.0217

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.

MWI Veterinary Supply Inc has a M-score of -2.25 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.

MWI Veterinary Supply Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 1.04251.02491.05750.9580.98330.97881.0180.89491.00960.9407
GMI 0.97581.00130.96881.00861.00231.00531.06581.0221.02110.9921
AQI 0.83350.85870.88590.97151.07130.92211.10370.97580.96970.9675
SGI 1.15391.25961.22061.17141.17081.13231.3061.27331.32571.1312
DEPI 1.0420.90430.84591.08010.88270.90861.07651.23890.98750.9908
SGAI 1.01120.99820.97221.00050.98140.95360.89190.96990.99360.9964
LVGI 0.99570.7440.81260.91691.05830.90111.19770.88331.16620.9674
TATA 0.10980.05190.09150.00210.02690.03610.0340.01860.05480.0054
M-score -1.87-1.97-1.82-2.33-2.22-2.21-1.99-2.17-1.98-2.40

MWI Veterinary Supply Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.05021.02840.99251.00960.9350.91030.97310.94071.07341.091
GMI 1.00361.021.04261.02111.01991.00510.98780.99211.0011.0159
AQI 1.06171.0530.98990.96970.96450.98640.96640.96750.81570.7891
SGI 1.22191.25091.29411.32571.31611.24481.17931.13121.12621.1686
DEPI 1.26121.11321.08750.98750.83760.88730.93370.99081.06781.0845
SGAI 0.99070.98220.96540.99360.9911.0011.01210.99640.99590.9929
LVGI 1.12031.09591.12671.16620.97610.9430.95750.96741.0831.1226
TATA -0.00240.02650.04580.05480.04550.0452-0.01220.00540.03440.0217
M-score -2.23-2.09-2.02-1.98-2.06-2.13-2.42-2.40-2.23-2.25
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