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BofI Holding Inc (NAS:BOFI)
Beneish M-Score
-2.19 (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.

BofI Holding Inc has a M-score of -2.19 signals that the company is a manipulator.

BOFI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.49   Max: -0.47
Current: -2.19

-3.49
-0.47

During the past 13 years, the highest Beneish M-Score of BofI Holding Inc was -0.47. The lowest was -3.49. And the median was -2.15.


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 BofI Holding Inc 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 * 0.9028+0.528 * 1+0.404 * 0.9998+0.892 * 1.4664+0.115 * 1.1201
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0615+4.679 * -0.0013-0.327 * 1.1151
=-2.19

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $23.9 Mil.
Revenue was 92.873 + 79.391 + 68.917 + 65.572 = $306.8 Mil.
Gross Profit was 92.873 + 79.391 + 68.917 + 65.572 = $306.8 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $7,705.6 Mil.
Property, Plant and Equipment(Net PPE) was $13.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.2 Mil.
Selling, General & Admin. Expense(SGA) was $61.7 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $914.2 Mil.
Net Income was 35.914 + 28.149 + 25.501 + 24.395 = $114.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 33.76 + 27.953 + 41.46 + 21.028 = $124.2 Mil.
Accounts Receivable was $18.1 Mil.
Revenue was 59.031 + 54.808 + 50.124 + 45.219 = $209.2 Mil.
Gross Profit was 59.031 + 54.808 + 50.124 + 45.219 = $209.2 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $5,528.5 Mil.
Property, Plant and Equipment(Net PPE) was $8.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.1 Mil.
Selling, General & Admin. Expense(SGA) was $39.7 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $588.2 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)
=(23.913 / 306.753) / (18.063 / 209.182)
=0.07795523 / 0.08635064
=0.9028

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)
=(79.391 / 209.182) / (92.873 / 306.753)
=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 + 13.056) / 7705.622) / (1 - (0 + 8.099) / 5528.52)
=0.99830565 / 0.99853505
=0.9998

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
=306.753 / 209.182
=1.4664

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))
=(3.064 / (3.064 + 8.099)) / (4.238 / (4.238 + 13.056))
=0.27447819 / 0.24505609
=1.1201

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)
=(61.721 / 306.753) / (39.65 / 209.182)
=0.20120749 / 0.18954786
=1.0615

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)
=((914.155 + 0) / 7705.622) / ((588.155 + 0) / 5528.52)
=0.11863481 / 0.10638561
=1.1151

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
=(113.959 - 0 - 124.201) / 7705.622
=-0.0013

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.

BofI Holding Inc has a M-score of -2.19 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.

BofI Holding Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.27221.6480.59190.66840.43241.15640.8330.91631.15111.0163
GMI 1111111111
AQI 1.000110.999910.99990.99880.99981.00090.99951.0001
SGI 1.14391.06471.61281.52961.98621.12851.43681.35351.23361.4386
DEPI 0.9211.01213.57220.89591.02621.67520.71280.59351.29141.0837
SGAI 0.88041.23331.07051.14980.5771.52471.00451.08890.88010.5553
LVGI 1.12180.75031.37890.97160.40271.21721.11051.07671.07860.6263
TATA 0.0010.0016-0.00430.01330.02540.00850.03590.00790.0079-0.0057
M-score -2.12-1.78-2.17-2.28-1.73-2.27-2.15-2.29-2.07-1.89

BofI Holding Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.92151.05091.15111.29731.11551.11341.01631.02310.94660.9028
GMI 1111111111
AQI 1.00021.00060.99951.00051.00031.00031.00011.00020.99990.9998
SGI 1.28061.25151.23361.29151.34181.39271.43861.42241.42871.4664
DEPI 0.71020.65211.29140.91841.01061.07381.08370.93561.05991.1201
SGAI 1.02960.95880.4830.50330.51990.57991.01171.02881.07631.0615
LVGI 1.11130.98741.07861.11210.63170.6860.62630.58950.88141.1151
TATA -0.0113-0.01340.00790.00860.00410.0057-0.0057-0.0013-0.0036-0.0013
M-score -2.43-2.30-2.00-1.87-1.85-1.82-1.97-1.97-2.13-2.19
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