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Banner Corp (NAS:BANR)
Beneish M-Score
-1.68 (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 -1.68 signals that the company is a manipulator.

BANR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.66   Max: -1.68
Current: -1.68

-4.66
-1.68

During the past 13 years, the highest Beneish M-Score of Banner Corp was -1.68. The lowest was -4.66. And the median was -2.35.


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 * 1.5764+0.528 * 1+0.404 * 1.0022+0.892 * 1.2968+0.115 * 1.3679
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6295+4.679 * 0.003-0.327 * 0.8339
=-1.68

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $31.2 Mil.
Revenue was 110.455 + 66.286 + 67.598 + 60.232 = $304.6 Mil.
Gross Profit was 110.455 + 66.286 + 67.598 + 60.232 = $304.6 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $9,796.3 Mil.
Property, Plant and Equipment(Net PPE) was $167.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.1 Mil.
Selling, General & Admin. Expense(SGA) was $166.7 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $324.2 Mil.
Net Income was 6.893 + 12.947 + 13.249 + 12.134 = $45.2 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -35.237 + 13.822 + 31.504 + 5.28 = $15.4 Mil.
Accounts Receivable was $15.3 Mil.
Revenue was 58.774 + 60.599 + 64.118 + 51.371 = $234.9 Mil.
Gross Profit was 58.774 + 60.599 + 64.118 + 51.371 = $234.9 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,723.2 Mil.
Property, Plant and Equipment(Net PPE) was $91.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General & Admin. Expense(SGA) was $78.9 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $187.4 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)
=(31.234 / 304.571) / (15.279 / 234.862)
=0.1025508 / 0.06505522
=1.5764

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)
=(66.286 / 234.862) / (110.455 / 304.571)
=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 + 167.604) / 9796.298) / (1 - (0 + 91.185) / 4723.163)
=0.98289109 / 0.98069408
=1.0022

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
=304.571 / 234.862
=1.2968

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))
=(10.054 / (10.054 + 91.185)) / (13.121 / (13.121 + 167.604))
=0.09930955 / 0.07260202
=1.3679

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)
=(166.661 / 304.571) / (78.869 / 234.862)
=0.54719918 / 0.33580997
=1.6295

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)
=((324.186 + 0) / 9796.298) / ((187.436 + 0) / 4723.163)
=0.03309271 / 0.03968442
=0.8339

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
=(45.223 - 0 - 15.369) / 9796.298
=0.003

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 -1.68 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 1.08250.89541.16661.17420.79910.5070.91311.57740.5761.5764
GMI 1111111111
AQI 0.99990.99471.00050.999411.00041.00061.00031.00131.0022
SGI 1.23591.27610.9961.00440.99291.06230.97981.07971.11811.2968
DEPI 0.94511.22550.64361.1230.99311.01521.06451.05840.94951.3679
SGAI 0.88080.91031.19651.00210.96410.96991.07590.97620.63671.6295
LVGI 0.46041.28920.8282.32240.69260.82190.7511.11910.94540.8339
TATA -0.0035-0.012-0.0273-0.0235-0.04-0.0225-0.0039-0.0111-0.00930.003
M-score -2.02-2.44-2.48-2.84-2.75-2.92-2.52-1.96-2.73-1.68

Banner Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.56750.9811.02690.59410.57961.02670.96220.96431.57641.0881
GMI 1111111111
AQI 1.00031.0011.00141.00171.00131.0010.99990.99981.00221.0017
SGI 1.08651.09491.04681.09911.11111.15081.10841.0921.29681.458
DEPI 1.05841.02941.17080.95660.94951.03921.04831.1031.36791.3695
SGAI 0.66920.66350.68810.67970.92880.94371.04371.06361.62951.5983
LVGI 1.11912.72861.47831.39410.94540.73630.77511.16830.83390.4955
TATA -0.0112-0.0101-0.0074-0.0086-0.0093-0.0053-0.0081-0.00590.0030.0042
M-score -1.91-2.96-2.53-2.88-2.79-2.24-2.38-2.51-1.68-1.87
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