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Molson Coors Brewing Co (NYSE:TAP)
Beneish M-Score
-2.96 (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 -2.96 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: -2.96

-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 * 0.9731+0.528 * 0.9841+0.404 * 0.5722+0.892 * 0.9293+0.115 * 1.0832
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1107+4.679 * -0.0104-0.327 * 1.4566
=-2.96

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $474 Mil.
Revenue was 947.6 + 986.2 + 657.2 + 844.4 = $3,435 Mil.
Gross Profit was 406.3 + 424 + 243.2 + 301.5 = $1,375 Mil.
Total Current Assets was $10,948 Mil.
Total Assets was $22,197 Mil.
Property, Plant and Equipment(Net PPE) was $1,527 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $1,106 Mil.
Total Current Liabilities was $1,606 Mil.
Long-Term Debt was $9,561 Mil.
Net Income was 202.5 + 172.3 + 158.8 + 32.8 = $566 Mil.
Non Operating Income was 0.8 + -30.4 + -15.3 + -6.5 = $-51 Mil.
Cash Flow from Operations was 365.8 + 357.8 + -93.4 + 217.4 = $848 Mil.
Accounts Receivable was $525 Mil.
Revenue was 1017.4 + 1005.7 + 700 + 973.8 = $3,697 Mil.
Gross Profit was 431.5 + 425.8 + 245.2 + 353.6 = $1,456 Mil.
Total Current Assets was $1,352 Mil.
Total Assets was $12,645 Mil.
Property, Plant and Equipment(Net PPE) was $1,615 Mil.
Depreciation, Depletion and Amortization(DDA) was $322 Mil.
Selling, General & Admin. Expense(SGA) was $1,072 Mil.
Total Current Liabilities was $1,413 Mil.
Long-Term Debt was $2,954 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)
=(474.4 / 3435.4) / (524.6 / 3696.9)
=0.13809163 / 0.14190268
=0.9731

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)
=(1456.1 / 3696.9) / (1375 / 3435.4)
=0.39387054 / 0.40024451
=0.9841

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 - (10947.7 + 1527.1) / 22196.8) / (1 - (1351.6 + 1614.8) / 12645.3)
=0.43799106 / 0.76541482
=0.5722

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
=3435.4 / 3696.9
=0.9293

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))
=(321.9 / (321.9 + 1614.8)) / (276.8 / (276.8 + 1527.1))
=0.16621056 / 0.15344531
=1.0832

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)
=(1106.1 / 3435.4) / (1071.7 / 3696.9)
=0.32197124 / 0.28989153
=1.1107

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)
=((9560.7 + 1605.7) / 22196.8) / ((2953.9 + 1413.3) / 12645.3)
=0.5030635 / 0.34536152
=1.4566

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
=(566.4 - -51.4 - 847.6) / 22196.8
=-0.0104

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 -2.96 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 local exchange's 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 0.94961.34850.6551.29781.05170.96471.09640.85910.94370.8985
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 -0.0422-0.0087-0.0012-0.0156-0.0068-0.0146-0.0278-0.0398-0.0538-0.0275
M-score -2.68-2.33-2.87-2.08-2.46-2.56-2.56-2.70-2.87-2.77

Molson Coors Brewing Co Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.06110.87950.86580.86520.88971.03080.96971.1371.03860.9731
GMI 0.9840.98450.99031.00091.00951.01741.0131.00140.99290.9841
AQI 1.01230.97370.9790.996511.01631.01230.83670.83160.5722
SGI 0.99340.99830.98580.96110.91520.880.86040.87460.9110.9293
DEPI 1.0390.95360.94370.89770.89530.87620.89850.98650.96851.0832
SGAI 0.99450.99670.9891.01981.02181.04011.05031.06471.09391.1107
LVGI 0.86910.95280.96341.03451.03661.03171.01130.78270.81671.4566
TATA -0.0284-0.0447-0.0538-0.037-0.0389-0.0219-0.0275-0.0234-0.0218-0.0104
M-score -2.52-2.81-2.87-2.84-2.86-2.68-2.77-2.58-2.66-2.96
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