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Molson Coors Brewing Co (NYSE:TAP)
Beneish M-Score
-2.58 (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.

Molson Coors Brewing Co has a M-score of -2.58 suggests that the company is not a manipulator.

TAP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37   Max: 1.31
Current: -2.58

-3.37
1.31

During the past 13 years, the highest Beneish M-Score of Molson Coors Brewing Co was 1.31. The lowest was -3.37. And the median was -2.61.


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 Molson Coors Brewing Co 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 * 1.137+0.528 * 1.0014+0.404 * 0.8367+0.892 * 0.8746+0.115 * 0.9865
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0647+4.679 * -0.0234-0.327 * 0.7827
=-2.58

* 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 $457 Mil.
Revenue was 657.2 + 844.4 + 1017.4 + 1005.7 = $3,525 Mil.
Gross Profit was 243.2 + 301.5 + 431.5 + 425.8 = $1,402 Mil.
Total Current Assets was $3,763 Mil.
Total Assets was $15,210 Mil.
Property, Plant and Equipment(Net PPE) was $1,589 Mil.
Depreciation, Depletion and Amortization(DDA) was $304 Mil.
Selling, General & Admin. Expense(SGA) was $1,062 Mil.
Total Current Liabilities was $1,222 Mil.
Long-Term Debt was $2,973 Mil.
Net Income was 158.8 + 32.8 + 16.6 + 229 = $437 Mil.
Non Operating Income was -15.3 + -6.5 + 3.7 + 6.3 = $-12 Mil.
Cash Flow from Operations was -93.4 + 234.9 + 263.4 + 400.7 = $806 Mil.
Accounts Receivable was $459 Mil.
Revenue was 700 + 973.8 + 1168 + 1188.5 = $4,030 Mil.
Gross Profit was 245.2 + 353.6 + 501.4 + 505.2 = $1,605 Mil.
Total Current Assets was $1,278 Mil.
Total Assets was $12,952 Mil.
Property, Plant and Equipment(Net PPE) was $1,641 Mil.
Depreciation, Depletion and Amortization(DDA) was $309 Mil.
Selling, General & Admin. Expense(SGA) was $1,141 Mil.
Total Current Liabilities was $2,254 Mil.
Long-Term Debt was $2,310 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)
=(456.5 / 3524.7) / (459.1 / 4030.3)
=0.12951457 / 0.11391212
=1.137

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)
=(1605.4 / 4030.3) / (1402 / 3524.7)
=0.39833263 / 0.39776435
=1.0014

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 - (3762.8 + 1588.7) / 15210.3) / (1 - (1278.1 + 1640.6) / 12951.7)
=0.64816605 / 0.77464734
=0.8367

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
=3524.7 / 4030.3
=0.8746

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))
=(309.3 / (309.3 + 1640.6)) / (304.4 / (304.4 + 1588.7))
=0.15862352 / 0.16079446
=0.9865

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)
=(1062.1 / 3524.7) / (1140.6 / 4030.3)
=0.30133061 / 0.28300623
=1.0647

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)
=((2973.4 + 1221.9) / 15210.3) / ((2310.1 + 2254.1) / 12951.7)
=0.27581967 / 0.35240162
=0.7827

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
=(437.2 - -11.8 - 805.6) / 15210.3
=-0.0234

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.

Molson Coors Brewing Co has a M-score of -2.58 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.

Molson Coors Brewing Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.92431.05390.741.86870.91361.08190.92740.87680.86580.9697
GMI 0.98781.00640.99230.94070.97151.06231.04461.01150.99031.013
AQI 0.97861.00281.15070.97110.95960.99821.07651.00750.97921.0121
SGI 1.06141.05910.77120.63521.07321.08031.1141.07390.98580.8604
DEPI 0.94971.34820.65511.42140.96030.96471.09640.85910.94370.8985
SGAI 0.98420.96020.99671.06381.04730.93160.9920.98710.9891.0503
LVGI 0.91380.87710.88740.94471.04160.99061.44550.92550.96921.0089
TATA -0.0422-0.0083-0.0003-0.0127-0.0068-0.0146-0.0278-0.0398-0.0537-0.0275
M-score -2.68-2.32-2.87-2.05-2.58-2.36-2.65-2.69-2.88-2.77

Molson Coors Brewing Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.87680.93271.06110.87950.86580.86520.88971.03080.96971.137
GMI 1.01150.98560.9840.98450.99031.00091.00951.01741.0131.0014
AQI 1.00751.00541.01230.97370.97920.996511.01631.01210.8367
SGI 1.07391.03450.99340.99830.98580.96110.91520.880.86040.8746
DEPI 0.85910.94531.0390.95360.94370.89770.89530.87620.89850.9865
SGAI 0.98710.97431.03541.00830.9891.01231.00151.03411.05031.0647
LVGI 0.92550.90430.86910.95280.96921.03451.03661.03171.00890.7827
TATA -0.0398-0.0338-0.0295-0.0451-0.0537-0.037-0.0389-0.0205-0.0275-0.0234
M-score -2.69-2.65-2.53-2.81-2.88-2.84-2.86-2.67-2.77-2.58
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