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Banner Corp (NAS:BANR)
Beneish M-Score
-2.05 (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.

Banner Corp has a M-score of -2.05 signals that the company is a manipulator.

BANR' s Beneish M-Score Range Over the Past 10 Years
Min: -7.38   Max: -1.68
Current: -2.05

-7.38
-1.68

During the past 13 years, the highest Beneish M-Score of Banner Corp was -1.68. The lowest was -7.38. And the median was -2.37.


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 Banner Corp 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 * 1.1021+0.528 * 1+0.404 * 1.0026+0.892 * 1.6239+0.115 * 0.9548
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4903+4.679 * 0.0095-0.327 * 1.5499
=-2.05

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $30.1 Mil.
Revenue was 113.685 + 111.002 + 110.455 + 66.286 = $401.4 Mil.
Gross Profit was 113.685 + 111.002 + 110.455 + 66.286 = $401.4 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $9,916.2 Mil.
Property, Plant and Equipment(Net PPE) was $167.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.7 Mil.
Selling, General & Admin. Expense(SGA) was $218.8 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $531.0 Mil.
Net Income was 20.957 + 17.774 + 6.893 + 12.947 = $58.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -36.06 + 21.396 + -35.237 + 13.822 = $-36.1 Mil.
Accounts Receivable was $16.8 Mil.
Revenue was 67.598 + 60.232 + 58.774 + 60.599 = $247.2 Mil.
Gross Profit was 67.598 + 60.232 + 58.774 + 60.599 = $247.2 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $5,194.3 Mil.
Property, Plant and Equipment(Net PPE) was $101.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.2 Mil.
Selling, General & Admin. Expense(SGA) was $90.4 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $179.5 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)
=(30.052 / 401.428) / (16.792 / 247.203)
=0.07486274 / 0.06792798
=1.1021

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)
=(247.203 / 247.203) / (401.428 / 401.428)
=1 / 1
=1

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 - (0 + 167.597) / 9916.205) / (1 - (0 + 101.141) / 5194.258)
=0.98309868 / 0.98052831
=1.0026

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
=401.428 / 247.203
=1.6239

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))
=(10.153 / (10.153 + 101.141)) / (17.704 / (17.704 + 167.597))
=0.09122684 / 0.09554185
=0.9548

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)
=(218.77 / 401.428) / (90.401 / 247.203)
=0.54497942 / 0.3656954
=1.4903

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)
=((530.989 + 0) / 9916.205) / ((179.453 + 0) / 5194.258)
=0.0535476 / 0.03454834
=1.5499

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
=(58.571 - 0 - -36.079) / 9916.205
=0.0095

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.

Banner Corp has a M-score of -2.05 signals that the company is likely to 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.

Banner Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.08250.89541.16661.17420.79910.5070.91311.56750.57961.5764
GMI 1111111111
AQI 0.99990.99471.00050.999411.00041.00061.00031.00131.0022
SGI 1.23591.27610.9961.00440.99291.06230.97981.08651.11111.2968
DEPI 0.94511.22550.64361.1230.99311.01521.06451.05840.94951.3679
SGAI 0.88080.91031.19651.00210.96410.96991.07590.66920.92881.6295
LVGI 0.46041.28920.8282.32240.69260.82190.7511.11910.94540.8339
TATA -0.0035-0.012-0.0273-0.0235-0.04-0.0225-0.0039-0.0112-0.00930.003
M-score -2.02-2.44-2.48-2.84-2.75-2.92-2.52-1.91-2.79-1.68

Banner Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.9811.02690.59410.57961.02670.96220.96431.57641.08811.1021
GMI 1111111111
AQI 1.0011.00141.00171.00131.0010.99990.99981.00221.00171.0026
SGI 1.09491.04681.09911.11111.15081.10841.0921.29681.4581.6239
DEPI 1.02941.17080.95660.94951.03921.04831.1031.36791.1290.9548
SGAI 0.66350.68810.67970.92880.94371.0491.06871.63391.60211.4903
LVGI 2.72861.47831.39410.94540.73630.77511.16830.83390.80811.5499
TATA -0.0101-0.0074-0.0086-0.0093-0.0053-0.0081-0.00590.0030.0020.0095
M-score -2.96-2.53-2.88-2.79-2.24-2.39-2.51-1.68-2.01-2.05
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