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Regis Corp (NYSE:RGS)
Beneish M-Score
-3.46 (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 -3.46 suggests that the company is not a manipulator.

RGS' s 10-Year Beneish M-Score Range
Min: -3.46   Max: -1.99
Current: -3.46

-3.46
-1.99

During the past 13 years, the highest Beneish M-Score of Regis Corp was -1.99. The lowest was -3.46. And the median was -2.89.


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 * 1.0616+0.528 * 1.0097+0.404 * 0.8947+0.892 * 0.9374+0.115 * 0.9035
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9847+4.679 * -0.1788-0.327 * 1.311
=-3.46

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $33 Mil.
Revenue was 483.926 + 471.561 + 468.367 + 468.583 = $1,892 Mil.
Gross Profit was 204.831 + 199.071 + 194.493 + 199.544 = $798 Mil.
Total Current Assets was $613 Mil.
Total Assets was $1,416 Mil.
Property, Plant and Equipment(Net PPE) was $267 Mil.
Depreciation, Depletion and Amortization(DDA) was $81 Mil.
Selling, General & Admin. Expense(SGA) was $697 Mil.
Total Current Liabilities was $385 Mil.
Long-Term Debt was $120 Mil.
Net Income was -17.022 + -9.484 + -109.085 + -0.136 = $-136 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 33.689 + 34.485 + 33.473 + 15.756 = $117 Mil.
Accounts Receivable was $33 Mil.
Revenue was 502.251 + 504.937 + 506.165 + 505.36 = $2,019 Mil.
Gross Profit was 205.573 + 217.34 + 216.836 + 219.7 = $859 Mil.
Total Current Assets was $489 Mil.
Total Assets was $1,390 Mil.
Property, Plant and Equipment(Net PPE) was $313 Mil.
Depreciation, Depletion and Amortization(DDA) was $84 Mil.
Selling, General & Admin. Expense(SGA) was $755 Mil.
Total Current Liabilities was $377 Mil.
Long-Term Debt was $1 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)
=(32.904 / 1892.437) / (33.062 / 2018.713)
=0.0173871 / 0.01637776
=1.0616

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)
=(199.071 / 2018.713) / (204.831 / 1892.437)
=0.42574105 / 0.42164627
=1.0097

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 - (613.266 + 266.538) / 1415.949) / (1 - (488.546 + 313.46) / 1390.492)
=0.37864711 / 0.42322142
=0.8947

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
=1892.437 / 2018.713
=0.9374

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))
=(84.018 / (84.018 + 313.46)) / (81.406 / (81.406 + 266.538))
=0.21137774 / 0.23396294
=0.9035

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)
=(697.257 / 1892.437) / (755.368 / 2018.713)
=0.36844397 / 0.37418296
=0.9847

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)
=((120.002 + 384.712) / 1415.949) / ((1.255 + 376.812) / 1390.492)
=0.35644928 / 0.27189441
=1.311

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
=(-135.727 - 0 - 117.403) / 1415.949
=-0.1788

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 -3.46 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.35731.09561.17680.77331.00681.20041.78211.92570.7951.0616
GMI 1.02710.99691.00481.01651.02311.06131.05441.04881.04431.0097
AQI 0.9870.85140.80680.83110.85940.80760.85730.77350.77080.8947
SGI 0.87770.97340.98260.99581.00280.95120.94550.93640.93420.9374
DEPI 0.87670.940.99471.15891.23861.11011.10060.95910.86970.9035
SGAI 1.04540.97570.95660.94680.97161.00721.00941.01080.99130.9847
LVGI 0.94471.09491.05371.02641.02150.83680.84881.08441.09381.311
TATA -0.1428-0.1704-0.1484-0.123-0.1086-0.0287-0.0622-0.1155-0.1325-0.1788
M-score -2.92-3.31-3.11-3.31-3.00-2.45-2.07-2.33-3.46-3.46
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