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Regis Corp (NYSE:RGS)
Beneish M-Score
-2.87 (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 -2.87 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: -2.87

-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 -2.77.


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 * 1.0493+0.528 * 1.0004+0.404 * 1.0709+0.892 * 0.9688+0.115 * 0.9647
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0045+4.679 * -0.0841-0.327 * 1.1093
=-2.87

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $28 Mil.
Revenue was 450.467 + 450.13 + 462.889 + 453.96 = $1,817 Mil.
Gross Profit was 183.411 + 189.326 + 198.274 + 192.013 = $763 Mil.
Total Current Assets was $363 Mil.
Total Assets was $1,055 Mil.
Property, Plant and Equipment(Net PPE) was $197 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $679 Mil.
Total Current Liabilities was $205 Mil.
Long-Term Debt was $120 Mil.
Net Income was -13.986 + -0.808 + -2.009 + -3.71 = $-21 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 0.044 + 11.854 + 21.635 + 34.698 = $68 Mil.
Accounts Receivable was $27 Mil.
Revenue was 455.887 + 464.551 + 483.926 + 471.561 = $1,876 Mil.
Gross Profit was 187.838 + 195.887 + 205.111 + 199.071 = $788 Mil.
Total Current Assets was $427 Mil.
Total Assets was $1,190 Mil.
Property, Plant and Equipment(Net PPE) was $241 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General & Admin. Expense(SGA) was $698 Mil.
Total Current Liabilities was $211 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)
=(27.705 / 1817.446) / (27.253 / 1875.925)
=0.01524392 / 0.01452777
=1.0493

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)
=(189.326 / 1875.925) / (183.411 / 1817.446)
=0.42000986 / 0.41983311
=1.0004

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 - (363.289 + 196.714) / 1054.832) / (1 - (427.491 + 241.493) / 1190.436)
=0.46910693 / 0.43803447
=1.0709

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
=1817.446 / 1875.925
=0.9688

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))
=(74.106 / (74.106 + 241.493)) / (63.284 / (63.284 + 196.714))
=0.23481063 / 0.24340187
=0.9647

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)
=(679.301 / 1817.446) / (698.027 / 1875.925)
=0.37376681 / 0.3720975
=1.0045

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)
=((120.06 + 204.861) / 1054.832) / ((120 + 210.551) / 1190.436)
=0.30803104 / 0.27767221
=1.1093

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
=(-20.513 - 0 - 68.231) / 1054.832
=-0.0841

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 -2.87 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.18261.00260.53521.41010.52941.2082.7280.97960.51240.8179
GMI 1.0010.99281.02541.0080.99151.01550.99691.06131.00941.0012
AQI 1.00940.98091.12141.03620.97171.04420.91110.75480.89471.1718
SGI 1.10781.08051.04270.88720.97060.92440.97340.95120.93740.9709
DEPI 0.92640.94720.96260.8781.02411.00510.82591.26350.90350.9817
SGAI 0.9621.00760.98810.99421.03261.07210.97571.00720.98641.014
LVGI 0.99321.02960.96990.96750.76080.8651.09490.83681.31570.8099
TATA -0.087-0.066-0.0617-0.1651-0.0779-0.1318-0.1704-0.0287-0.1803-0.11
M-score -2.62-2.74-3.09-2.96-3.24-2.91-1.80-2.66-3.98-3.06

Regis Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.78211.92570.7950.51240.42430.63681.01470.81791.13741.0493
GMI 1.05441.04881.04431.00941.00641.00050.99481.00120.99941.0004
AQI 0.85730.77350.77080.89471.03181.13151.1361.17181.02961.0709
SGI 0.94550.93640.93420.93740.95280.96490.97260.97090.96530.9688
DEPI 1.11750.95910.86970.90350.93720.97660.99430.98170.97320.9647
SGAI 1.00941.01080.99130.98640.9911.00021.00761.01191.00671.0045
LVGI 0.84881.08441.09381.31571.01640.81330.80360.80991.11981.1093
TATA -0.0622-0.1155-0.1325-0.1803-0.2192-0.1352-0.1322-0.1086-0.1008-0.0841
M-score -2.07-2.33-3.46-3.98-4.07-3.37-3.00-3.05-2.89-2.87
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