Molson Coors Beverage Co Beneish M-Score

Molson Coors Beverage 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 Molson Coors Beverage Co for today is based on a combination of the following eight different indices:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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.

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.

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.

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.

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.

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

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 in leverage

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Molson Coors Beverage Co has a M-score of -2.31 suggests that the company is unlikely to be a manipulator.

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Molson Coors Beverage Co Business Description

Industry

Consumer Defensive » Beverages - Alcoholic NAICS : 312120 SIC : 2082

Comparable Companies

NYSE:SAM NAS:BREW NYSE:BUD XAMS:HEIA HKSE:01876 BSP:ABEV3 XAMS:HEIO OCSE:CARL B HKSE:00291 TSE:2503 TSE:2502 XZIM:DLTA.ZW TSE:2587 SHSE:600600 SZSE:000596 LIM:BACKUSI1 TSX:TPX.B SHSE:600132 OCSE:RBREW SHSE:600779

Traded in Other Exchanges

TAP.A:USA TAP1:Mexico 0K2K:UK NY7:Germany M1CB34:Brazil

Address

NH353, P.O. Box 4030, Golden, CO, USA, 80401

Website

https://www.molsoncoors.com

Molson Coors is the fifth- largest beer producer globally, boasting top-two positioning in the U.S., Canada, and many Central European markets. It brews and markets a slew of company-owned brands including Blue Moon, Coors, Miller, Vizzy, and Staropramen. It also sells various partner brands in certain locales such as Topo Chico (licensed from Coca-Cola), Amstel and Dos Equis in Canada (through an exclusive import/license arrangement with Heineken) and Corona in Central Europe (through an agreement with Anheuser-Busch InBev). The firm's go-to-market approach differs by geography as well, primarily using independent distributors in the U.S., but deploying hybrid models in Canada and Europe.

Executives

Herington Charles M	director	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Eaton Roger G.	director	1441 GARDINER LANE LOUISVILLE KY 40213
Napier Iain J G	director	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Tough Douglas D.	director	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Vachon Louis	director	1155 METCALFE STREET MONTREAL QUEBEC CANADA E6 0000
Coors Peter H	director, 10 percent owner, other: Vice Chairman of the Board	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Coors David S.	director	P.O. BOX 4030 NH353 GOLDEN CO 80401
Winnefeld James A Jr	director	870 WINTER STREET WALTHAM MA 02451
Fergusonmchugh Marylynn	director	ONE PROCTER & GAMBLE PLAZA CINCINNATI OH 45202
Molson Andrew Thomas	director, other: Chairman of the Board	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Riley H Sanford	director	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Molson Geoffrey E.	director	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Hobbs Franklin W Iv	director	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Cox Simon	officer: Pres&CEO, Molson Coors Europe	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202
Tabolt Brian	officer: VP,Controller & Chf Acct Off	1801 CALIFORNIA STREET, SUITE 4600 DENVER CO 80202