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Regis Corp (NYSE:RGS)
Beneish M-Score
-2.99 (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 -2.99 suggests that the company is not a manipulator.

RGS' s 10-Year Beneish M-Score Range
Min: -4.06   Max: -1.01
Current: -2.99

-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 -2.78.


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 * 1.0147+0.528 * 0.9951+0.404 * 1.136+0.892 * 0.9726+0.115 * 0.9943
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0078+4.679 * -0.1318-0.327 * 0.8036
=-2.99

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $24 Mil.
Revenue was 453.96 + 455.887 + 464.551 + 483.926 = $1,858 Mil.
Gross Profit was 192.013 + 187.838 + 195.887 + 204.831 = $781 Mil.
Total Current Assets was $433 Mil.
Total Assets was $1,175 Mil.
Property, Plant and Equipment(Net PPE) was $228 Mil.
Depreciation, Depletion and Amortization(DDA) was $71 Mil.
Selling, General & Admin. Expense(SGA) was $692 Mil.
Total Current Liabilities was $207 Mil.
Long-Term Debt was $120 Mil.
Net Income was -3.71 + -19.071 + -9.052 + -17.022 = $-49 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 34.698 + 21.596 + 16.033 + 33.689 = $106 Mil.
Accounts Receivable was $24 Mil.
Revenue was 471.561 + 468.367 + 468.583 + 502.251 = $1,911 Mil.
Gross Profit was 199.071 + 194.493 + 199.544 + 205.573 = $799 Mil.
Total Current Assets was $604 Mil.
Total Assets was $1,427 Mil.
Property, Plant and Equipment(Net PPE) was $273 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General & Admin. Expense(SGA) was $706 Mil.
Total Current Liabilities was $374 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)
=(23.993 / 1858.324) / (24.312 / 1910.762)
=0.0129111 / 0.01272372
=1.0147

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)
=(187.838 / 1910.762) / (192.013 / 1858.324)
=0.41799083 / 0.42003924
=0.9951

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 - (432.799 + 228.195) / 1175.323) / (1 - (604.328 + 273.168) / 1427.339)
=0.43760651 / 0.38522243
=1.136

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
=1858.324 / 1910.762
=0.9726

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))
=(84.77 / (84.77 + 273.168)) / (71.344 / (71.344 + 228.195))
=0.23682872 / 0.23817934
=0.9943

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)
=(691.941 / 1858.324) / (705.936 / 1910.762)
=0.3723468 / 0.36945261
=1.0078

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 + 207.082) / 1175.323) / ((120.005 + 374.293) / 1427.339)
=0.27829116 / 0.34630736
=0.8036

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
=(-48.855 - 0 - 106.016) / 1175.323
=-0.1318

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 -2.99 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 1.19461.18261.00260.53521.41010.52941.2081.19491.10071.0616
GMI 1.00591.0010.99281.02541.0080.99151.01550.99691.06131.0097
AQI 1.16321.00940.98091.12141.03620.97171.04420.91110.75480.8947
SGI 1.1411.10781.08051.04270.88720.97060.92440.97340.95120.9374
DEPI 0.94620.92640.94720.96260.8781.02411.00510.82591.26350.9035
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 -2.62-2.62-2.74-3.09-2.96-3.24-2.91-3.21-2.55-3.46

Regis Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.77331.00681.10071.78211.92570.7951.06160.42430.63681.0147
GMI 1.01651.02311.06131.05441.04881.04431.00971.00681.00080.9951
AQI 0.83110.85940.75480.85730.77350.77080.89471.03181.13151.136
SGI 0.99581.00280.95120.94550.93640.93420.93740.95280.96490.9726
DEPI 1.15891.23861.26351.11750.95910.86970.90350.93720.97660.9943
SGAI 0.94680.97161.00721.00941.01080.99130.98470.9891.00041.0078
LVGI 1.02641.02150.83680.84881.08441.09381.3111.01640.81330.8036
TATA -0.123-0.1086-0.0287-0.0622-0.1155-0.1325-0.1788-0.2168-0.1348-0.1318
M-score -3.31-3.00-2.55-2.07-2.33-3.46-3.46-4.06-3.36-2.99
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