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Regis Corp (NYSE:RGS)
Beneish M-Score
-2.76 (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.

Regis Corp has a M-score of -2.76 suggests that the company is not a manipulator.

RGS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.07   Max: -1.01
Current: -2.76

-4.07
-1.01

During the past 13 years, the highest Beneish M-Score of Regis Corp was -1.01. The lowest was -4.07. And the median was -2.78.


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 Regis Corp 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 * 0.9788+0.528 * 1.0165+0.404 * 1.0595+0.892 * 0.972+0.115 * 0.9937
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9787+4.679 * -0.0605-0.327 * 0.9662
=-2.76

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $23 Mil.
Revenue was 431.042 + 447.707 + 442.565 + 450.467 = $1,772 Mil.
Gross Profit was 179.8 + 188.084 + 182.519 + 183.411 = $734 Mil.
Total Current Assets was $356 Mil.
Total Assets was $1,026 Mil.
Property, Plant and Equipment(Net PPE) was $175 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General & Admin. Expense(SGA) was $647 Mil.
Total Current Liabilities was $182 Mil.
Long-Term Debt was $120 Mil.
Net Income was 3.281 + 5.562 + -2.084 + -13.986 = $-7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 12.33 + 16.14 + 26.994 + -0.611 = $55 Mil.
Accounts Receivable was $24 Mil.
Revenue was 450.13 + 462.889 + 453.96 + 455.887 = $1,823 Mil.
Gross Profit was 189.326 + 198.274 + 192.013 + 187.838 = $767 Mil.
Total Current Assets was $404 Mil.
Total Assets was $1,120 Mil.
Property, Plant and Equipment(Net PPE) was $206 Mil.
Depreciation, Depletion and Amortization(DDA) was $65 Mil.
Selling, General & Admin. Expense(SGA) was $680 Mil.
Total Current Liabilities was $221 Mil.
Long-Term Debt was $120 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)
=(23.068 / 1771.781) / (24.247 / 1822.866)
=0.01301967 / 0.01330158
=0.9788

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)
=(767.451 / 1822.866) / (733.814 / 1771.781)
=0.42101339 / 0.41416744
=1.0165

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 - (356.099 + 174.769) / 1025.913) / (1 - (403.856 + 206.261) / 1120.373)
=0.48254092 / 0.45543404
=1.0595

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
=1771.781 / 1822.866
=0.972

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))
=(65.342 / (65.342 + 206.261)) / (55.827 / (55.827 + 174.769))
=0.24057908 / 0.24209874
=0.9937

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)
=(647.196 / 1771.781) / (680.36 / 1822.866)
=0.36527991 / 0.37323643
=0.9787

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)
=((119.855 + 181.788) / 1025.913) / ((120 + 220.928) / 1120.373)
=0.29402396 / 0.30429866
=0.9662

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
=(-7.227 - 0 - 54.853) / 1025.913
=-0.0605

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.

Regis Corp has a M-score of -2.76 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 local exchange's currency.

Regis Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 1.00260.53521.41010.52942.20211.49650.97960.51240.78621.0284
GMI 0.99281.02541.0080.99151.01550.99691.06171.0091.00121.015
AQI 0.98091.12141.03620.97171.04420.91110.75480.89471.17181.077
SGI 1.08051.04270.88720.97060.92440.97340.95120.93740.97090.9747
DEPI 0.94720.96260.8781.02411.00510.82591.26350.90350.98171.0049
SGAI 1.00760.98810.99421.03261.07210.97571.00540.98811.0140.9821
LVGI 1.02960.96990.96750.76080.8651.09490.83681.31570.80991.0512
TATA -0.0768-0.0614-0.1651-0.0779-0.1318-0.1704-0.0283-0.1803-0.11-0.064
M-score -2.79-3.09-2.96-3.24-2.00-2.93-2.66-3.98-3.09-2.75

Regis Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.51240.42430.63681.01470.78621.13741.04931.01631.02840.9788
GMI 1.0091.00611.00010.99441.00120.99941.00041.00711.0151.0165
AQI 0.89471.03181.13151.1361.17181.02961.07091.07441.0771.0595
SGI 0.93740.95280.96490.97260.97090.96530.96880.97190.97470.972
DEPI 0.90350.93720.97660.99430.98170.97320.96470.96641.00490.9937
SGAI 0.98810.99281.0021.00931.0141.00881.00661.00130.98210.9787
LVGI 1.31571.01640.81330.80360.80991.11981.10931.11131.05120.9662
TATA -0.1803-0.2192-0.1352-0.1331-0.11-0.1029-0.0857-0.0773-0.064-0.0605
M-score -3.98-4.07-3.37-3.00-3.09-2.90-2.88-2.86-2.75-2.76
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