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MSC Industrial Direct Co Beneish M-Score

: 0.00 (As of Today)
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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.

MSC Industrial Direct Co has a M-score of signals that the company is a manipulator.

During the past 13 years, the highest Beneish M-Score of MSC Industrial Direct Co was 0.00. The lowest was -3.31. And the median was -2.37.


MSC Industrial Direct Co Beneish M-Score Historical Data

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

* Premium members only.

MSC Industrial Direct Co Annual Data

Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.37 -2.70 -3.15 -2.28 0.00

MSC Industrial Direct Co Quarterly Data

Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


MSC Industrial Direct Co Beneish M-Score Distribution

* The bar in red indicates where MSC Industrial Direct Co's Beneish M-Score falls into.



MSC Industrial Direct Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 MSC Industrial Direct 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

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

This Year (May19) TTM:Last Year (May18) TTM:
Accounts Receivable was $546 Mil.
Revenue was 866.546 + 823.004 + 831.597 + 837.985 = $3,359 Mil.
Gross Profit was 368.655 + 351.814 + 357.985 + 359.668 = $1,438 Mil.
Total Current Assets was $1,216 Mil.
Total Assets was $2,324 Mil.
Property, Plant and Equipment(Net PPE) was $307 Mil.
Depreciation, Depletion and Amortization(DDA) was $65 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $486 Mil.
Long-Term Debt & Capital Lease Obligation was $285 Mil.
Net Income was 79.601 + 68.424 + 74.232 + 73.017 = $295 Mil.
Non Operating Income was -0.095 + -0.237 + 0.002 + -0.076 = $-0 Mil.
Cash Flow from Operations was 88.622 + 21.712 + 76.866 + 109.421 = $297 Mil.
Accounts Receivable was $511 Mil.
Revenue was 828.345 + 768.987 + 768.561 + 753.77 = $3,120 Mil.
Gross Profit was 361.001 + 337.223 + 335.069 + 333.45 = $1,367 Mil.
Total Current Assets was $1,116 Mil.
Total Assets was $2,256 Mil.
Property, Plant and Equipment(Net PPE) was $311 Mil.
(DDA) was $63 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $528 Mil.
Long-Term Debt & Capital Lease Obligation was $251 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(546.486 / 3359.132) / (510.832 / 3119.663)
=0.16268667 / 0.16374589
=

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)
=(1366.743 / 3119.663) / (1438.122 / 3359.132)
=0.43810597 / 0.4281231
=

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1215.772 + 306.564) / 2324.348) / (1 - (1116.185 + 311.264) / 2255.732)
=0.34504816 / 0.36719034
=

4. SGI = Sales Growth Index

Ratio of Revenue 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
=3359.132 / 3119.663
=

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(63.376 / (63.376 + 311.264)) / (64.56 / (64.56 + 306.564))
=0.16916507 / 0.17395803
=

6. SGAI = Sales, General and Administrative expenses Index

The ratio of c 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)
=(0 / 3359.132) / (0 / 3119.663)
=0 / 0
=

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)
=((284.691 + 486.068) / 2324.348) / ((251.304 + 528.493) / 2255.732)
=0.33160224 / 0.34569577
=

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
=(295.274 - -0.406 - 296.621) / 2324.348
=-0.0004

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.

MSC Industrial Direct Co has a M-score of signals that the company is likely to be a manipulator.


MSC Industrial Direct Co Beneish M-Score Headlines

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