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Molson Coors Brewing Co (NYSE:TAP)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

TAP' s 10-Year Beneish M-Score Range
Min: -3.37   Max: 1.28
Current: -2.61

-3.37
1.28

During the past 13 years, the highest Beneish M-Score of Molson Coors Brewing Co was 1.28. The lowest was -3.37. And the median was -2.62.


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 * 0.971+0.528 * 0.9856+0.404 * 1.0054+0.892 * 1.0345+0.115 * 0.9453
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9671+4.679 * -0.0338-0.327 * 0.9043
=-2.61

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $713 Mil.
Revenue was 816 + 1028.4 + 1171.2 + 1178 = $4,194 Mil.
Gross Profit was 292.8 + 384 + 501.2 + 493.9 = $1,672 Mil.
Total Current Assets was $1,484 Mil.
Total Assets was $15,366 Mil.
Property, Plant and Equipment(Net PPE) was $1,936 Mil.
Depreciation, Depletion and Amortization(DDA) was $322 Mil.
Selling, General & Admin. Expense(SGA) was $1,172 Mil.
Total Current Liabilities was $2,072 Mil.
Long-Term Debt was $3,162 Mil.
Net Income was 163.4 + 131.5 + 121.8 + 278.4 = $695 Mil.
Non Operating Income was 0.8 + 27.4 + -5.5 + -7.3 = $15 Mil.
Cash Flow from Operations was 149.7 + 138.2 + 439 + 472.6 = $1,200 Mil.
Accounts Receivable was $710 Mil.
Revenue was 828.5 + 1030.2 + 1195.5 + 999.4 = $4,054 Mil.
Gross Profit was 281.4 + 383.6 + 508.5 + 419.3 = $1,593 Mil.
Total Current Assets was $1,690 Mil.
Total Assets was $15,943 Mil.
Property, Plant and Equipment(Net PPE) was $1,926 Mil.
Depreciation, Depletion and Amortization(DDA) was $300 Mil.
Selling, General & Admin. Expense(SGA) was $1,172 Mil.
Total Current Liabilities was $2,615 Mil.
Long-Term Debt was $3,391 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)
=(713.4 / 4193.6) / (710.2 / 4053.6)
=0.17011637 / 0.17520229
=0.971

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)
=(384 / 4053.6) / (292.8 / 4193.6)
=0.39293468 / 0.39867894
=0.9856

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 - (1484.3 + 1936.2) / 15365.8) / (1 - (1689.7 + 1925.5) / 15942.7)
=0.77739525 / 0.77323791
=1.0054

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
=4193.6 / 4053.6
=1.0345

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))
=(299.5 / (299.5 + 1925.5)) / (321.5 / (321.5 + 1936.2))
=0.13460674 / 0.14240156
=0.9453

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)
=(1172.4 / 4193.6) / (1171.8 / 4053.6)
=0.27956887 / 0.28907638
=0.9671

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)
=((3162.3 + 2071.8) / 15365.8) / ((3390.8 + 2614.8) / 15942.7)
=0.34063309 / 0.37669905
=0.9043

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
=(695.1 - 15.4 - 1199.5) / 15365.8
=-0.0338

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 -2.61 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.03080.77850.94090.73860.91231.69621.38350.92120.93150.8998
GMI 0.97260.90930.98781.35261.02870.98560.66551.06231.04461.0115
AQI 0.95691.62980.97861.00281.15070.97110.95960.99821.07651.0075
SGI 1.07641.27891.06141.42340.79950.66550.73521.08031.1141.0739
DEPI 0.91821.00071.01371.35780.6551.29781.05170.96471.09640.8591
SGAI 1.02751.04350.98420.71450.96141.01531.52880.93160.9920.9871
LVGI 0.86960.83370.91380.87710.88740.94471.04160.99061.44550.9255
TATA -0.0695-0.0106-0.0378-0.0083-0.0012-0.0156-0.0068-0.0146-0.0278-0.0398
M-score -2.71-2.23-2.64-2.06-2.67-2.18-2.69-2.51-2.65-2.67

Molson Coors Brewing Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.11521.00760.9550.94950.93150.95360.77610.90050.89980.971
GMI 0.87750.95011.06311.02461.04461.05371.03841.04091.01150.9856
AQI 0.99821.00571.07471.05611.07651.05590.98391.00411.00751.0054
SGI 0.89240.95481.07451.12011.1141.15271.18141.10051.07391.0345
DEPI 0.96470.93761.2621.2181.09640.97370.69950.79340.85910.9453
SGAI 1.12781.06320.96370.97080.9920.98810.93440.96170.99420.9671
LVGI 0.99060.941.35631.45991.44551.55620.98090.93860.92550.9043
TATA -0.0146-0.0152-0.0221-0.0282-0.0278-0.0361-0.0366-0.0421-0.0402-0.0338
M-score -2.63-2.61-2.57-2.64-2.65-2.69-2.70-2.65-2.68-2.61
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