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Regis Corp (NYSE:RGS)
Beneish M-Score
-4.06 (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 -4.06 suggests that the company is not a manipulator.

RGS' s 10-Year Beneish M-Score Range
Min: -4.06   Max: -1.01
Current: -4.06

-4.06
-1.01

During the past 13 years, the highest Beneish M-Score of Regis Corp was -1.01. The lowest was -4.06. And the median was -2.77.


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 * 0.4243+0.528 * 1.0068+0.404 * 1.0318+0.892 * 0.9528+0.115 * 0.9372
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.989+4.679 * -0.2168-0.327 * 1.0164
=-4.06

* 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 $22 Mil.
Revenue was 464.551 + 483.926 + 471.561 + 468.367 = $1,888 Mil.
Gross Profit was 195.887 + 204.831 + 199.071 + 194.493 = $794 Mil.
Total Current Assets was $422 Mil.
Total Assets was $1,210 Mil.
Property, Plant and Equipment(Net PPE) was $253 Mil.
Depreciation, Depletion and Amortization(DDA) was $77 Mil.
Selling, General & Admin. Expense(SGA) was $697 Mil.
Total Current Liabilities was $209 Mil.
Long-Term Debt was $120 Mil.
Net Income was -9.052 + -17.022 + -9.484 + -109.085 = $-145 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 16.033 + 33.689 + 34.485 + 33.473 = $118 Mil.
Accounts Receivable was $55 Mil.
Revenue was 468.583 + 502.251 + 504.937 + 506.165 = $1,982 Mil.
Gross Profit was 199.544 + 205.573 + 217.34 + 216.836 = $839 Mil.
Total Current Assets was $486 Mil.
Total Assets was $1,380 Mil.
Property, Plant and Equipment(Net PPE) was $302 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General & Admin. Expense(SGA) was $740 Mil.
Total Current Liabilities was $369 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)
=(22.085 / 1888.405) / (54.633 / 1981.936)
=0.01169505 / 0.02756547
=0.4243

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)
=(204.831 / 1981.936) / (195.887 / 1888.405)
=0.42347129 / 0.42060999
=1.0068

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 - (421.66 + 253.072) / 1209.928) / (1 - (486.177 + 302.4) / 1380.282)
=0.44233706 / 0.42868414
=1.0318

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
=1888.405 / 1981.936
=0.9528

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))
=(85.014 / (85.014 + 302.4)) / (77.371 / (77.371 + 253.072))
=0.21943967 / 0.23414326
=0.9372

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)
=(697.279 / 1888.405) / (739.934 / 1981.936)
=0.3692423 / 0.373339
=0.989

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)
=((120 + 208.791) / 1209.928) / ((0.015 + 369.033) / 1380.282)
=0.27174427 / 0.26737145
=1.0164

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
=(-144.643 - 0 - 117.68) / 1209.928
=-0.2168

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 -4.06 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.

Regis Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 1.19461.18261.00260.53521.41010.52941.2081.09561.20041.0616
GMI 1.00591.0010.99281.02541.0080.99151.01550.99691.06131.0097
AQI 1.16321.00940.98091.12141.03620.97171.04420.85140.80760.8947
SGI 1.1411.10781.08051.04270.88720.97060.92440.97340.95120.9374
DEPI 0.94620.92640.94720.96260.8781.02411.00510.941.11010.9035
SGAI 1.07290.9621.00760.98810.99421.03261.07210.97571.00720.9847
LVGI 1.23490.99321.02960.96990.96750.76080.8651.09490.83681.311
TATA -0.0893-0.087-0.066-0.0617-0.1651-0.0779-0.1318-0.1704-0.0287-0.1788
M-score -2.62-2.62-2.74-3.09-2.96-3.24-2.91-3.31-2.45-3.46

Regis Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.09561.17680.77331.00681.20041.78211.92570.7951.06160.4243
GMI 0.99691.00481.01651.02311.06131.05441.04881.04431.00971.0068
AQI 0.85140.80680.83110.85940.80760.85730.77350.77080.89471.0318
SGI 0.97340.98260.99581.00280.95120.94550.93640.93420.93740.9528
DEPI 0.940.99471.15891.23861.11011.11750.95910.86970.90350.9372
SGAI 0.97570.95660.94680.97161.00721.00941.01080.99130.98470.989
LVGI 1.09491.05371.02641.02150.83680.84881.08441.09381.3111.0164
TATA -0.1704-0.1484-0.123-0.1086-0.0287-0.0622-0.1155-0.1325-0.1788-0.2168
M-score -3.31-3.11-3.31-3.00-2.45-2.07-2.33-3.46-3.46-4.06
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