TAP has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
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 -2.60.
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 * 0.8897||+||0.528 * 1.0095||+||0.404 * 1||+||0.892 * 0.9152||+||0.115 * 0.8953|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0218||+||4.679 * -0.0389||-||0.327 * 1.0366|
|This Year (Jun15) TTM:||Last Year (Jun14) TTM:|
|Accounts Receivable was $595 Mil.|
Revenue was 1005.7 + 700 + 973.8 + 1168 = $3,848 Mil.
Gross Profit was 425.8 + 245.2 + 353.6 + 501.4 = $1,526 Mil.
Total Current Assets was $1,476 Mil.
Total Assets was $13,397 Mil.
Property, Plant and Equipment(Net PPE) was $1,709 Mil.
Depreciation, Depletion and Amortization(DDA) was $314 Mil.
Selling, General & Admin. Expense(SGA) was $1,096 Mil.
Total Current Liabilities was $2,350 Mil.
Long-Term Debt was $2,305 Mil.
Net Income was 229 + 81.1 + 94.1 + -34.4 = $370 Mil.
Non Operating Income was 6.3 + -2.6 + -3 + -5 = $-4 Mil.
Cash Flow from Operations was 400.7 + -202.6 + 214.2 + 482.4 = $895 Mil.
|Accounts Receivable was $731 Mil.
Revenue was 1188.5 + 816 + 1028.4 + 1171.2 = $4,204 Mil.
Gross Profit was 505.2 + 292.8 + 384 + 501.2 = $1,683 Mil.
Total Current Assets was $1,800 Mil.
Total Assets was $15,873 Mil.
Property, Plant and Equipment(Net PPE) was $1,974 Mil.
Depreciation, Depletion and Amortization(DDA) was $318 Mil.
Selling, General & Admin. Expense(SGA) was $1,172 Mil.
Total Current Liabilities was $2,112 Mil.
Long-Term Debt was $3,209 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(595.1 / 3847.5)||/||(730.9 / 4204.1)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(245.2 / 4204.1)||/||(425.8 / 3847.5)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1476.2 + 1709.4) / 13397.2)||/||(1 - (1800.3 + 1974) / 15873)|
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.
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))|
|=||(318 / (318 + 1974))||/||(313.5 / (313.5 + 1709.4))|
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)|
|=||(1096.1 / 3847.5)||/||(1172.1 / 4204.1)|
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)|
|=||((2305.2 + 2349.5) / 13397.2)||/||((3208.6 + 2111.7) / 15873)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(369.8 - -4.3||-||894.7)||/||13397.2|
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 -2.86 suggests that the company will not be a manipulator.
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
Molson Coors Brewing Co Annual Data
Molson Coors Brewing Co Quarterly Data