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Molson Coors Brewing Company (NYSE:TAP)
Beneish M-Score
-2.67 (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 Company has a M-score of -2.67 suggests that the company is not a manipulator.

TAP' s 10-Year Beneish M-Score Range
Min: -3.11   Max: 1.28
Current: -2.67

-3.11
1.28

During the past 13 years, the highest Beneish M-Score of Molson Coors Brewing Company was 1.28. The lowest was -3.11. And the median was -2.66.


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 Company 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 * 0.8998+0.528 * 1.0115+0.404 * 1.0075+0.892 * 1.0739+0.115 * 0.8591
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9871+4.679 * -0.0398-0.327 * 0.9255
=-2.67

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $728 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 $2,142 Mil.
Long-Term Debt was $3,213 Mil.
Net Income was 131.5 + 121.8 + 278.4 + 35.6 = $567 Mil.
Non Operating Income was 27.4 + -5.5 + -7.3 + 4.3 = $19 Mil.
Cash Flow from Operations was 138.2 + 439 + 472.6 + 118.4 = $1,168 Mil.
Accounts Receivable was $753 Mil.
Revenue was 1030.2 + 1195.5 + 999.4 + 691.4 = $3,917 Mil.
Gross Profit was 383.6 + 508.5 + 419.3 + 252.6 = $1,564 Mil.
Total Current Assets was $1,748 Mil.
Total Assets was $16,212 Mil.
Property, Plant and Equipment(Net PPE) was $1,996 Mil.
Depreciation, Depletion and Amortization(DDA) was $273 Mil.
Selling, General & Admin. Expense(SGA) was $1,126 Mil.
Total Current Liabilities was $2,599 Mil.
Long-Term Debt was $3,423 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)
=(728 / 4206.1) / (753.4 / 3916.5)
=0.17308195 / 0.19236563
=0.8998

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)
=(501.2 / 3916.5) / (384 / 4206.1)
=0.39933614 / 0.39478377
=1.0115

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 - (1537.7 + 1970.1) / 15580.1) / (1 - (1748 + 1995.9) / 16212.2)
=0.77485382 / 0.76906897
=1.0075

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
=4206.1 / 3916.5
=1.0739

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))
=(272.7 / (272.7 + 1995.9)) / (320.5 / (320.5 + 1970.1))
=0.12020629 / 0.13991967
=0.8591

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)
=(1193.8 / 4206.1) / (1126.1 / 3916.5)
=0.28382587 / 0.28752713
=0.9871

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)
=((3213 + 2142.1) / 15580.1) / ((3422.5 + 2598.7) / 16212.2)
=0.3437141 / 0.37139932
=0.9255

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
=(567.3 - 18.9 - 1168.2) / 15580.1
=-0.0398

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 Company has a M-score of -2.67 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 Company 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 Company Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.17091.11521.00760.9550.94950.93150.95360.77610.90050.8998
GMI 0.78990.87750.95011.06311.02461.04461.05371.03841.04091.0115
AQI 0.98530.99821.00571.07471.05611.07651.05590.98391.00411.0075
SGI 0.79450.89240.95481.07451.12011.1141.15271.18141.10051.0739
DEPI 1.10160.96470.93761.2621.2181.09640.97370.69950.79340.8591
SGAI 1.29511.12781.06320.96370.97080.9920.98090.92750.95470.9871
LVGI 1.16840.99060.941.35631.45991.44551.55620.98090.93860.9255
TATA 0.0015-0.0146-0.0152-0.0221-0.0282-0.0278-0.0356-0.0362-0.0417-0.0398
M-score -2.71-2.63-2.61-2.57-2.64-2.65-2.68-2.70-2.65-2.67
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