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Regis Corp (NYSE:RGS)
Beneish M-Score
-3.36 (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 -3.36 suggests that the company is not a manipulator.

RGS' s 10-Year Beneish M-Score Range
Min: -3.59   Max: -1.01
Current: -3.36

-3.59
-1.01

During the past 13 years, the highest Beneish M-Score of Regis Corp was -1.01. The lowest was -3.59. And the median was -2.72.


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 * 0.9123+0.528 * 1.0481+0.404 * 0.7708+0.892 * 0.9166+0.115 * 0.9568
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9908+4.679 * -0.1325-0.327 * 1.0938
=-3.36

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $43 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 $80 Mil.
Selling, General & Admin. Expense(SGA) was $706 Mil.
Total Current Liabilities was $374 Mil.
Long-Term Debt was $120 Mil.
Net Income was -9.484 + -109.085 + -0.136 + 0.675 = $-118 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 34.485 + 33.473 + 15.756 + -12.592 = $71 Mil.
Accounts Receivable was $52 Mil.
Revenue was 504.937 + 506.165 + 505.36 + 568.168 = $2,085 Mil.
Gross Profit was 217.34 + 216.836 + 219.7 + 259.368 = $913 Mil.
Total Current Assets was $464 Mil.
Total Assets was $1,542 Mil.
Property, Plant and Equipment(Net PPE) was $307 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General & Admin. Expense(SGA) was $777 Mil.
Total Current Liabilities was $249 Mil.
Long-Term Debt was $240 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)
=(43.425 / 1910.762) / (51.932 / 2084.63)
=0.02272654 / 0.02491185
=0.9123

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)
=(194.493 / 2084.63) / (199.071 / 1910.762)
=0.43808446 / 0.41799083
=1.0481

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 - (604.328 + 273.168) / 1427.339) / (1 - (463.946 + 307.295) / 1541.792)
=0.38522243 / 0.49977623
=0.7708

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
=1910.762 / 2084.63
=0.9166

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))
=(84.748 / (84.748 + 307.295)) / (79.735 / (79.735 + 273.168))
=0.21617017 / 0.22594027
=0.9568

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)
=(705.936 / 1910.762) / (777.329 / 2084.63)
=0.36945261 / 0.37288584
=0.9908

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)
=((120.005 + 374.293) / 1427.339) / ((239.593 + 248.533) / 1541.792)
=0.34630736 / 0.31659653
=1.0938

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
=(-118.03 - 0 - 71.122) / 1427.339
=-0.1325

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 -3.36 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 0.96051.19461.18261.00260.53522.74470.78890.74631.47261.0127
GMI 1.1310.93310.99770.81761.02541.0080.99151.00091.00021.0733
AQI 1.05861.16321.0110.97931.12141.03620.97171.04420.89320.6892
SGI 1.14161.1411.10781.08051.04270.88720.97060.98620.97760.8878
DEPI 0.96220.94870.95770.94720.96260.8781.02411.00510.861.4015
SGAI 0.83041.24070.95531.31940.98810.98741.03981.06520.9791.0103
LVGI 0.88291.23490.99131.03150.96990.96750.76080.8651.09490.8368
TATA -0.0797-0.0893-0.0872-0.066-0.0617-0.1494-0.0779-0.1318-0.1704-0.0287
M-score -2.61-2.69-2.61-2.89-3.09-1.66-3.01-3.29-2.95-2.69

Regis Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.92370.53921.47261.06020.83581.29171.01271.30751.27720.9123
GMI 1.00641.00241.00021.01381.03141.04461.07331.0641.05581.0481
AQI 1.01350.9870.89320.80680.83110.85940.68920.85730.77350.7708
SGI 0.98930.98870.97760.95420.93410.90730.88780.89660.90290.9166
DEPI 0.86880.87670.860.99471.12461.18021.40151.10061.01910.9568
SGAI 1.06661.03290.9790.96410.96040.9841.01031.0111.00960.9908
LVGI 0.96890.94471.09491.05371.02641.02150.83680.84881.08441.0938
TATA -0.1645-0.1428-0.1704-0.1547-0.1294-0.1151-0.0358-0.0622-0.1155-0.1325
M-score -3.34-3.59-2.95-3.27-3.33-2.85-2.73-2.55-2.94-3.36
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