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Molson Coors Brewing Co (NYSE:TAP)
Beneish M-Score
-2.87 (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 -2.87 suggests that the company is not a manipulator.

TAP' s 10-Year Beneish M-Score Range
Min: -3.15   Max: 1.31
Current: -2.87

-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 -2.67.


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 * 0.8658+0.528 * 0.9903+0.404 * 0.9792+0.892 * 0.9858+0.115 * 0.9437
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.989+4.679 * -0.0537-0.327 * 0.9657
=-2.87

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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 $1,579 Mil.
Total Assets was $13,996 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 $2,337 Mil.
Net Income was 94.1 + -34.4 + 290.9 + 163.4 = $514 Mil.
Non Operating Income was -3 + -5 + 0.7 + 0.8 = $-7 Mil.
Cash Flow from Operations was 214.2 + 482.4 + 426.3 + 149.7 = $1,273 Mil.
Accounts Receivable was $573 Mil.
Revenue was 1028.4 + 1171.2 + 1178 + 828.5 = $4,206 Mil.
Gross Profit was 384 + 501.2 + 493.9 + 281.4 = $1,661 Mil.
Total Current Assets was $1,538 Mil.
Total Assets was $15,580 Mil.
Property, Plant and Equipment(Net PPE) was $1,970 Mil.
Depreciation, Depletion and Amortization(DDA) was $321 Mil.
Selling, General & Admin. Expense(SGA) was $1,194 Mil.
Total Current Liabilities was $2,161 Mil.
Long-Term Debt was $3,213 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)
=(488.9 / 4146.3) / (572.8 / 4206.1)
=0.11791236 / 0.13618316
=0.8658

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)
=(501.4 / 4206.1) / (353.6 / 4146.3)
=0.39478377 / 0.39866869
=0.9903

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 - (1578.9 + 1798) / 13996.3) / (1 - (1537.7 + 1970.1) / 15580.1)
=0.75872909 / 0.77485382
=0.9792

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
=4146.3 / 4206.1
=0.9858

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))
=(320.5 / (320.5 + 1970.1)) / (313 / (313 + 1798))
=0.13991967 / 0.14827096
=0.9437

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)
=(1163.9 / 4146.3) / (1193.8 / 4206.1)
=0.2807081 / 0.28382587
=0.989

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)
=((2337.1 + 2325.3) / 13996.3) / ((3213 + 2161.4) / 15580.1)
=0.33311661 / 0.34495286
=0.9657

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
=(514 - -6.5 - 1272.6) / 13996.3
=-0.0537

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 -2.87 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.77960.92050.77960.77911.80231.370.85931.03050.87680.8658
GMI 0.90930.98781.35261.02870.98560.66551.06231.04461.01150.9903
AQI 1.62980.97861.00281.15070.97110.95960.99821.07651.00750.9792
SGI 1.27891.06141.42340.79950.66550.73521.08031.1141.07390.9858
DEPI 1.00071.01371.35780.6551.29781.05170.96471.09640.85910.9437
SGAI 1.04350.98420.71450.96141.01531.52880.93160.9920.98710.989
LVGI 0.83370.91380.87710.88740.94471.04160.99061.44550.92880.9657
TATA -0.0106-0.0378-0.0083-0.0012-0.0156-0.0068-0.0146-0.0278-0.0398-0.0537
M-score -2.23-2.66-2.03-2.79-2.08-2.70-2.56-2.56-2.70-2.87

Molson Coors Brewing Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.99941.03050.96880.79330.93130.87680.93271.06110.87950.8658
GMI 1.02461.04461.05371.03841.04091.01150.98560.9840.98450.9903
AQI 1.05611.07651.05590.98391.00411.00751.00541.01230.97370.9792
SGI 1.12011.1141.15271.18141.10051.07391.03450.99340.99830.9858
DEPI 1.2181.09640.97370.69950.79340.85910.94531.0390.95360.9437
SGAI 0.97080.9920.98810.94650.96020.98710.960.99450.99670.989
LVGI 1.45991.44551.55620.98090.93860.92880.90430.86910.95280.9657
TATA -0.0282-0.0278-0.0361-0.0373-0.042-0.0398-0.0334-0.0284-0.0447-0.0537
M-score -2.59-2.56-2.67-2.69-2.62-2.70-2.64-2.52-2.81-2.87
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