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Molson Coors Brewing Co (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 Co has a M-score of -2.67 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: -2.67

-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 -2.59.


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 * 1.0308+0.528 * 1.0174+0.404 * 1.0163+0.892 * 0.88+0.115 * 0.8762
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0401+4.679 * -0.0205-0.327 * 1.0317
=-2.67

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 16.6 + 229 + 81.1 + 94.1 = $421 Mil.
Non Operating Income was 3.7 + 6.3 + -2.6 + -3 = $4 Mil.
Cash Flow from Operations was 263.4 + 400.7 + -202.6 + 214.2 = $676 Mil.
Accounts Receivable was $578 Mil.
Revenue was 1168 + 1188.5 + 816 + 1028.4 = $4,201 Mil.
Gross Profit was 501.4 + 505.2 + 292.8 + 384 = $1,683 Mil.
Total Current Assets was $1,812 Mil.
Total Assets was $14,833 Mil.
Property, Plant and Equipment(Net PPE) was $1,850 Mil.
Depreciation, Depletion and Amortization(DDA) was $315 Mil.
Selling, General & Admin. Expense(SGA) was $1,171 Mil.
Total Current Liabilities was $2,620 Mil.
Long-Term Debt was $2,346 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)
=(524.6 / 3696.9) / (578.3 / 4200.9)
=0.14190268 / 0.13766098
=1.0308

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)
=(425.8 / 4200.9) / (431.5 / 3696.9)
=0.40072365 / 0.39387054
=1.0174

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 - (1351.6 + 1614.8) / 12645.3) / (1 - (1811.9 + 1850.2) / 14833.4)
=0.76541482 / 0.75311796
=1.0163

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
=3696.9 / 4200.9
=0.88

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))
=(315.4 / (315.4 + 1850.2)) / (321.9 / (321.9 + 1614.8))
=0.14564093 / 0.16621056
=0.8762

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)
=(1071.7 / 3696.9) / (1170.9 / 4200.9)
=0.28989153 / 0.27872599
=1.0401

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)
=((2953.9 + 1413.3) / 12645.3) / ((2345.8 + 2619.8) / 14833.4)
=0.34536152 / 0.33475805
=1.0317

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
=(420.8 - 4.4 - 675.7) / 12645.3
=-0.0205

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 -2.67 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 Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.78220.92431.05390.741.86871.03520.85931.03050.87680.8658
GMI 0.90930.98781.00640.99230.94070.97151.06231.04461.01150.9903
AQI 1.62980.97861.00281.15070.97110.95960.99821.07651.00750.9792
SGI 1.27891.06141.05910.77120.63521.07321.08031.1141.07390.9858
DEPI 1.06730.94961.34850.6551.29781.05170.96471.09640.85910.9437
SGAI 1.04350.98420.96020.99671.06381.04730.93160.9920.98710.989
LVGI 0.83370.91380.87710.88740.94471.04160.99061.44550.92880.9657
TATA -0.0232-0.0422-0.0087-0.0012-0.0156-0.0068-0.0146-0.0278-0.0398-0.0537
M-score -2.28-2.68-2.33-2.87-2.08-2.46-2.56-2.56-2.70-2.87

Molson Coors Brewing Co Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.79330.93130.87680.93271.06110.87950.86580.86520.88971.0308
GMI 1.03841.04091.01150.98560.9840.98450.99031.00091.00951.0174
AQI 0.98391.00411.00751.00541.01230.97370.97920.996511.0163
SGI 1.18141.10051.07391.03450.99340.99830.98580.96110.91520.88
DEPI 0.69950.79340.85910.94531.0390.95360.94370.89770.89530.8762
SGAI 0.94650.96020.98710.960.99450.99670.9891.01981.02181.0401
LVGI 0.98090.93860.92880.90430.86910.95280.96571.03451.03661.0317
TATA -0.0373-0.042-0.0398-0.0334-0.0284-0.0447-0.0537-0.037-0.0389-0.0205
M-score -2.69-2.62-2.70-2.64-2.52-2.81-2.87-2.84-2.86-2.67
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