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Molson Coors Brewing Co (NYSE:TAP)
Beneish M-Score
-2.66 (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 -2.66 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: -2.66

-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 * 1.0386+0.528 * 0.9929+0.404 * 0.8316+0.892 * 0.911+0.115 * 0.9685
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0939+4.679 * -0.0218-0.327 * 0.8167
=-2.66

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $563 Mil.
Revenue was 986.2 + 657.2 + 844.4 + 1017.4 = $3,505 Mil.
Gross Profit was 424 + 243.2 + 301.5 + 431.5 = $1,400 Mil.
Total Current Assets was $4,071 Mil.
Total Assets was $15,322 Mil.
Property, Plant and Equipment(Net PPE) was $1,539 Mil.
Depreciation, Depletion and Amortization(DDA) was $293 Mil.
Selling, General & Admin. Expense(SGA) was $1,092 Mil.
Total Current Liabilities was $1,668 Mil.
Long-Term Debt was $2,680 Mil.
Net Income was 172.3 + 158.8 + 32.8 + 16.6 = $381 Mil.
Non Operating Income was -30.4 + -15.3 + -6.5 + 3.7 = $-49 Mil.
Cash Flow from Operations was 357.8 + -93.4 + 234.9 + 263.4 = $763 Mil.
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.



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)
=(563.1 / 3505.2) / (595.1 / 3847.5)
=0.16064704 / 0.15467186
=1.0386

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)
=(1526 / 3847.5) / (1400.2 / 3505.2)
=0.39662118 / 0.39946365
=0.9929

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 - (4070.7 + 1539.2) / 15322.2) / (1 - (1476.2 + 1709.4) / 13397.2)
=0.63387112 / 0.76221897
=0.8316

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
=3505.2 / 3847.5
=0.911

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))
=(313.5 / (313.5 + 1709.4)) / (293.2 / (293.2 + 1539.2))
=0.15497553 / 0.16000873
=0.9685

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)
=(1092.4 / 3505.2) / (1096.1 / 3847.5)
=0.31165126 / 0.28488629
=1.0939

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)
=((2680.3 + 1667.6) / 15322.2) / ((2305.2 + 2349.5) / 13397.2)
=0.28376473 / 0.34743827
=0.8167

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
=(380.5 - -48.5 - 762.7) / 15322.2
=-0.0218

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 -2.66 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 0.94961.34850.6551.29781.05170.96471.09640.85910.94370.8985
SGAI 0.98420.96020.99671.06381.04730.93160.9920.98710.9891.0503
LVGI 0.91380.87710.88740.94471.04160.99061.44550.92550.96691.0113
TATA -0.0422-0.0087-0.0012-0.0156-0.0068-0.0146-0.0278-0.0398-0.0538-0.0275
M-score -2.68-2.33-2.87-2.08-2.46-2.56-2.56-2.69-2.88-2.77

Molson Coors Brewing Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.93271.06110.87950.86580.86520.88971.03080.96971.1371.0386
GMI 0.98560.9840.98450.99031.00091.00951.01741.0131.00140.9929
AQI 1.00541.01230.97370.9790.996511.01631.01230.83670.8316
SGI 1.03450.99340.99830.98580.96110.91520.880.86040.87460.911
DEPI 0.94531.0390.95360.94370.89770.89530.87620.89850.98650.9685
SGAI 0.97431.03541.00830.9891.01231.00151.03411.05031.06471.0939
LVGI 0.90430.86910.95280.96691.03451.03661.03171.01130.78270.8167
TATA -0.0338-0.0295-0.0451-0.0538-0.037-0.0389-0.0205-0.0275-0.0234-0.0218
M-score -2.65-2.53-2.81-2.88-2.84-2.86-2.67-2.77-2.58-2.66
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