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Molson Coors Brewing Co (NYSE:TAP)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

TAP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Max: 1.31
Current: -2.77

-3.15
1.31

During the past 13 years, the highest Beneish M-Score of Molson Coors Brewing Co was 1.31. The lowest was -3.15. And the median was -2.69.


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 * 0.9697+0.528 * 1.013+0.404 * 1.0123+0.892 * 0.8604+0.115 * 0.8985
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0503+4.679 * -0.0275-0.327 * 1.0113
=-2.77

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $408 Mil.
Revenue was 844.4 + 1017.4 + 1005.7 + 700 = $3,568 Mil.
Gross Profit was 301.5 + 431.5 + 425.8 + 245.2 = $1,404 Mil.
Total Current Assets was $1,259 Mil.
Total Assets was $12,276 Mil.
Property, Plant and Equipment(Net PPE) was $1,591 Mil.
Depreciation, Depletion and Amortization(DDA) was $314 Mil.
Selling, General & Admin. Expense(SGA) was $1,052 Mil.
Total Current Liabilities was $1,217 Mil.
Long-Term Debt was $2,909 Mil.
Net Income was 32.8 + 16.6 + 229 + 81.1 = $360 Mil.
Non Operating Income was -6.5 + 3.7 + 6.3 + -2.6 = $1 Mil.
Cash Flow from Operations was 234.9 + 263.4 + 400.7 + -202.6 = $696 Mil.
Accounts Receivable was $489 Mil.
Revenue was 973.8 + 1168 + 1188.5 + 816 = $4,146 Mil.
Gross Profit was 353.6 + 501.4 + 505.2 + 292.8 = $1,653 Mil.
Total Current Assets was $1,577 Mil.
Total Assets was $13,980 Mil.
Property, Plant and Equipment(Net PPE) was $1,798 Mil.
Depreciation, Depletion and Amortization(DDA) was $313 Mil.
Selling, General & Admin. Expense(SGA) was $1,164 Mil.
Total Current Liabilities was $2,325 Mil.
Long-Term Debt was $2,321 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)
=(407.9 / 3567.5) / (488.9 / 4146.3)
=0.11433777 / 0.11791236
=0.9697

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)
=(431.5 / 4146.3) / (301.5 / 3567.5)
=0.39866869 / 0.39355291
=1.013

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 - (1258.8 + 1590.8) / 12276.3) / (1 - (1577.1 + 1798) / 13980.1)
=0.76787794 / 0.75857826
=1.0123

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
=3567.5 / 4146.3
=0.8604

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))
=(313 / (313 + 1798)) / (314.4 / (314.4 + 1590.8))
=0.14827096 / 0.16502204
=0.8985

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)
=(1051.8 / 3567.5) / (1163.9 / 4146.3)
=0.29482831 / 0.2807081
=1.0503

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)
=((2908.7 + 1217.2) / 12276.3) / ((2321.3 + 2324.9) / 13980.1)
=0.33608661 / 0.33234383
=1.0113

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
=(359.5 - 0.9 - 696.4) / 12276.3
=-0.0275

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 -2.77 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 0.92431.05390.741.86871.03520.85931.03050.87680.86580.9697
GMI 0.98781.00640.99230.94070.97151.06231.04461.01150.99031.013
AQI 0.97861.00281.15070.97110.95960.99821.07651.00750.9791.0123
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 0.91380.87710.88740.94471.04160.99061.44550.92880.96341.0113
TATA -0.0422-0.0083-0.0003-0.0127-0.0068-0.0146-0.0278-0.0398-0.0538-0.0275
M-score -2.68-2.32-2.87-2.05-2.47-2.56-2.56-2.70-2.87-2.77

Molson Coors Brewing Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.93130.87680.93271.06110.87950.86580.86520.88971.03080.9697
GMI 1.04091.01150.98560.9840.98450.99031.00091.00951.01741.013
AQI 1.00411.00751.00541.01230.97370.9790.996511.01631.0123
SGI 1.10051.07391.03450.99340.99830.98580.96110.91520.880.8604
DEPI 0.79340.85910.94531.0390.95360.94370.89770.89530.87620.8985
SGAI 0.96020.98710.960.99450.99670.9891.01981.02181.04011.0503
LVGI 0.93860.92880.90430.86910.95280.96341.03451.03661.03171.0113
TATA -0.042-0.0398-0.0334-0.0284-0.0447-0.0538-0.037-0.0389-0.0205-0.0275
M-score -2.62-2.70-2.64-2.52-2.81-2.87-2.84-2.86-2.67-2.77
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