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Regis Corp (NYSE:RGS)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

RGS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.06   Max: -1.01
Current: -2.86

-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 -2.79.


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 * 1.0163+0.528 * 1.0067+0.404 * 1.0744+0.892 * 0.9719+0.115 * 0.9664
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9985+4.679 * -0.0768-0.327 * 1.1113
=-2.86

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $24 Mil.
Revenue was 442.565 + 450.467 + 450.13 + 462.889 = $1,806 Mil.
Gross Profit was 182.519 + 183.411 + 189.326 + 198.274 = $754 Mil.
Total Current Assets was $361 Mil.
Total Assets was $1,034 Mil.
Property, Plant and Equipment(Net PPE) was $187 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General & Admin. Expense(SGA) was $671 Mil.
Total Current Liabilities was $200 Mil.
Long-Term Debt was $120 Mil.
Net Income was -2.084 + -13.986 + -0.808 + -2.009 = $-19 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 26.994 + 0.044 + 11.854 + 21.635 = $61 Mil.
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.



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)
=(23.699 / 1806.051) / (23.993 / 1858.324)
=0.013122 / 0.0129111
=1.0163

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)
=(780.569 / 1858.324) / (753.53 / 1806.051)
=0.42003924 / 0.41722521
=1.0067

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 - (361.43 + 186.644) / 1034.402) / (1 - (432.799 + 228.195) / 1175.323)
=0.47015377 / 0.43760651
=1.0744

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
=1806.051 / 1858.324
=0.9719

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))
=(71.344 / (71.344 + 228.195)) / (61.042 / (61.042 + 186.644))
=0.23817934 / 0.24644913
=0.9664

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)
=(671.493 / 1806.051) / (691.941 / 1858.324)
=0.37180179 / 0.3723468
=0.9985

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)
=((120.248 + 199.663) / 1034.402) / ((120 + 207.082) / 1175.323)
=0.30927144 / 0.27829116
=1.1113

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
=(-18.887 - 0 - 60.527) / 1034.402
=-0.0768

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 -2.86 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

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 1.00260.53521.41010.59841.00171.18982.39610.52250.80210.9886
GMI 0.99281.02541.0080.99151.00091.00021.07331.00971.00091.015
AQI 0.98091.12141.03620.97171.04420.89320.76990.89471.17181.077
SGI 1.08051.04270.88720.97060.98620.97760.88780.93740.97090.9747
DEPI 0.94720.96260.8781.02411.00510.861.21330.90350.98171.0049
SGAI 1.00760.98810.98741.03981.06520.9791.01030.98471.01580.9821
LVGI 1.02960.96990.96750.76080.8651.09490.83681.3110.81281.0512
TATA -0.0768-0.0614-0.1651-0.0779-0.1318-0.1704-0.0287-0.1788-0.11-0.064
M-score -2.79-3.09-2.96-3.18-3.06-3.21-1.41-3.96-3.08-2.79

Regis Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.81030.52250.42430.63681.01470.80211.13741.04931.01630.9886
GMI 1.04811.00971.00681.00080.99511.00090.9991.00011.00671.015
AQI 0.77080.89471.03181.13151.1361.17181.02961.07091.07441.077
SGI 0.91660.93740.95280.96490.97260.97090.96530.96880.97190.9747
DEPI 0.95680.90350.96770.94710.94860.98170.9570.96470.96641.0049
SGAI 0.99080.98470.9891.00041.00781.01581.0111.00430.99850.9821
LVGI 1.09381.3111.01640.81330.80360.81281.11981.10931.11131.0512
TATA -0.1325-0.1788-0.2168-0.1348-0.1318-0.11-0.103-0.0841-0.0768-0.064
M-score -3.45-3.96-4.06-3.37-3.00-3.08-2.90-2.87-2.86-2.79
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