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MWI Veterinary Supply Inc (NAS:MWIV)
Beneish M-Score
-2.21 (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 -2.21 signals that the company is a manipulator.

MWIV' s 10-Year Beneish M-Score Range
Min: -2.47   Max: -1.98
Current: -2.21

-2.47
-1.98

During the past 13 years, the highest Beneish M-Score of MWI Veterinary Supply Inc was -1.98. The lowest was -2.47. And the median was -2.22.


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 * 0.9985+0.528 * 1.0408+0.404 * 0.9495+0.892 * 1.2699+0.115 * 1.0664
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9812+4.679 * 0.0117-0.327 * 1.1072
=-2.21

* 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 $359 Mil.
Revenue was 794.059 + 778.448 + 721.272 + 687.259 = $2,981 Mil.
Gross Profit was 93.69 + 97.475 + 91.06 + 89.088 = $371 Mil.
Total Current Assets was $843 Mil.
Total Assets was $1,042 Mil.
Property, Plant and Equipment(Net PPE) was $50 Mil.
Depreciation, Depletion and Amortization(DDA) was $12 Mil.
Selling, General & Admin. Expense(SGA) was $242 Mil.
Total Current Liabilities was $524 Mil.
Long-Term Debt was $0 Mil.
Net Income was 17.381 + 19.365 + 16.776 + 18.439 = $72 Mil.
Non Operating Income was 0.322 + 0.27 + 0.237 + 0.301 = $1 Mil.
Cash Flow from Operations was 4.33 + 62.187 + 2.821 + -10.673 = $59 Mil.
Accounts Receivable was $283 Mil.
Revenue was 605.08 + 606.443 + 563.114 + 572.848 = $2,347 Mil.
Gross Profit was 75.219 + 77.511 + 74.679 + 76.929 = $304 Mil.
Total Current Assets was $643 Mil.
Total Assets was $803 Mil.
Property, Plant and Equipment(Net PPE) was $39 Mil.
Depreciation, Depletion and Amortization(DDA) was $10 Mil.
Selling, General & Admin. Expense(SGA) was $194 Mil.
Total Current Liabilities was $365 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)
=(358.757 / 2981.038) / (282.923 / 2347.485)
=0.12034634 / 0.12052175
=0.9985

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)
=(97.475 / 2347.485) / (93.69 / 2981.038)
=0.12964428 / 0.12455829
=1.0408

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 - (843.17 + 50.15) / 1041.916) / (1 - (642.822 + 39.183) / 802.555)
=0.14261802 / 0.15020777
=0.9495

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
=2981.038 / 2347.485
=1.2699

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))
=(10.038 / (10.038 + 39.183)) / (11.858 / (11.858 + 50.15))
=0.20393734 / 0.19123339
=1.0664

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)
=(241.717 / 2981.038) / (193.999 / 2347.485)
=0.08108484 / 0.08264121
=0.9812

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 + 524.381) / 1041.916) / ((0.016 + 364.777) / 802.555)
=0.50328529 / 0.45453956
=1.1072

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
=(71.961 - 1.13 - 58.665) / 1041.916
=0.0117

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 -2.21 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 own currency.

MWI Veterinary Supply Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 1.02491.05750.9580.98330.97881.0180.83111.01020.93160.9985
GMI 1.00130.96881.00861.00231.00531.06581.0221.02110.99211.0408
AQI 0.85870.88590.97151.07130.92211.10370.97580.96970.96750.9495
SGI 1.25961.22061.17141.17081.13231.3061.27331.32571.13121.2699
DEPI 0.90430.84591.08010.88270.90861.07651.23890.98750.99081.0664
SGAI 0.99820.97221.00050.98140.95360.89190.96990.99360.99640.9812
LVGI 0.7440.81260.91691.05830.90111.19770.88331.16620.96741.1072
TATA 0.05190.09150.00210.02690.03610.0340.01860.05480.00540.0117
M-score -1.97-1.82-2.33-2.22-2.21-1.99-2.23-1.98-2.41-2.21

MWI Veterinary Supply Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.99251.01020.9350.91030.97310.93160.9591.0910.90720.9985
GMI 1.04261.02111.01991.00510.98780.99211.0011.01591.02591.0408
AQI 0.98990.96970.96450.98640.96640.96750.81570.78910.85080.9495
SGI 1.29411.32571.31611.24481.17931.13121.12621.16861.21721.2699
DEPI 1.08750.98750.83760.88730.93370.99081.06781.08451.11031.0664
SGAI 0.96540.99360.9911.0011.01210.99640.99590.99290.99440.9812
LVGI 1.12671.16620.97610.9430.95750.96741.0831.12261.04631.1072
TATA 0.04580.05480.04550.0452-0.01220.00540.03440.02170.01740.0117
M-score -2.02-1.98-2.06-2.13-2.42-2.41-2.34-2.25-2.34-2.21
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