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MWI Veterinary Supply, Inc. (NAS:MWIV)
Beneish M-Score
-2.23 (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 -2.23 suggests that the company is not a manipulator.

MWIV' s 10-Year Beneish M-Score Range
Min: -2.47   Max: -1.82
Current: -2.23

-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 -2.16.


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 * 1.0734+0.528 * 1.001+0.404 * 0.8157+0.892 * 1.1262+0.115 * 1.0678
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9959+4.679 * 0.0344-0.327 * 1.083
=-2.23

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $354 Mil.
Revenue was 687.259 + 605.08 + 606.443 + 563.114 = $2,462 Mil.
Gross Profit was 89.088 + 75.219 + 77.511 + 74.679 = $316 Mil.
Total Current Assets was $766 Mil.
Total Assets was $939 Mil.
Property, Plant and Equipment(Net PPE) was $46 Mil.
Depreciation, Depletion and Amortization(DDA) was $10 Mil.
Selling, General & Admin. Expense(SGA) was $203 Mil.
Total Current Liabilities was $480 Mil.
Long-Term Debt was $0 Mil.
Net Income was 18.439 + 14.217 + 16.781 + 15.1 = $65 Mil.
Non Operating Income was 0.301 + 0.252 + 0.229 + 0.294 = $1 Mil.
Cash Flow from Operations was -10.673 + -3.021 + 54.699 + -9.798 = $31 Mil.
Accounts Receivable was $293 Mil.
Revenue was 572.848 + 551.406 + 554.669 + 507.17 = $2,186 Mil.
Gross Profit was 76.929 + 68.265 + 69.519 + 66.618 = $281 Mil.
Total Current Assets was $575 Mil.
Total Assets was $734 Mil.
Property, Plant and Equipment(Net PPE) was $37 Mil.
Depreciation, Depletion and Amortization(DDA) was $9 Mil.
Selling, General & Admin. Expense(SGA) was $181 Mil.
Total Current Liabilities was $346 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)
=(353.851 / 2461.896) / (292.715 / 2186.093)
=0.14373109 / 0.1338987
=1.0734

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)
=(75.219 / 2186.093) / (89.088 / 2461.896)
=0.12869123 / 0.12855823
=1.001

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 - (766.42 + 45.507) / 938.914) / (1 - (574.74 + 37.18) / 733.545)
=0.13524881 / 0.16580442
=0.8157

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
=2461.896 / 2186.093
=1.1262

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))
=(9.264 / (9.264 + 37.18)) / (10.454 / (10.454 + 45.507))
=0.19946602 / 0.18680867
=1.0678

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)
=(202.612 / 2461.896) / (180.657 / 2186.093)
=0.08229917 / 0.08263921
=0.9959

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)
=((0.009 + 479.666) / 938.914) / ((0.07 + 345.955) / 733.545)
=0.51088279 / 0.47171612
=1.083

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
=(64.537 - 1.076 - 31.207) / 938.914
=0.0344

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 -2.23 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.89491.05021.02840.99251.00960.9350.91030.97310.94071.0734
GMI 1.0221.00361.021.04261.02111.01991.00510.98780.99211.001
AQI 0.97581.06171.0530.98990.96970.96450.98640.96640.96750.8157
SGI 1.27331.22191.25091.29411.32571.31611.24481.17931.13121.1262
DEPI 1.23891.26121.11321.08750.98750.83760.88730.93370.99081.0678
SGAI 0.96990.99070.98220.96540.99360.9911.0011.01210.99640.9959
LVGI 0.88331.12031.09591.12671.16620.97610.9430.95750.96741.083
TATA 0.0186-0.00240.02650.04580.05480.04550.0452-0.01220.00540.0344
M-score -2.17-2.23-2.09-2.02-1.98-2.06-2.13-2.42-2.40-2.23
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