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BofI Holding Inc (NAS:BOFI)
Beneish M-Score
-2.13 (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 -2.13 signals that the company is a manipulator.

BOFI' s Beneish M-Score Range Over the Past 10 Years
Min: 0   Max: 0
Current: -2.13

During the past 13 years, the highest Beneish M-Score of BofI Holding Inc was 0.00. The lowest was 0.00. And the median was 0.00.


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 * 0.9466+0.528 * 1+0.404 * 0.9999+0.892 * 1.4287+0.115 * 1.0599
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0763+4.679 * -0.0036-0.327 * 0.8814
=-2.13

* 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 $19.1 Mil.
Revenue was 79.391 + 68.917 + 65.572 + 59.031 = $272.9 Mil.
Gross Profit was 79.391 + 68.917 + 65.572 + 59.031 = $272.9 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $6,662.2 Mil.
Property, Plant and Equipment(Net PPE) was $10.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.8 Mil.
Selling, General & Admin. Expense(SGA) was $52.8 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $763.2 Mil.
Net Income was 28.149 + 25.501 + 24.395 + 21.074 = $99.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 27.953 + 41.46 + 21.028 + 32.818 = $123.3 Mil.
Accounts Receivable was $14.1 Mil.
Revenue was 54.808 + 50.124 + 45.219 + 40.875 = $191.0 Mil.
Gross Profit was 54.808 + 50.124 + 45.219 + 40.875 = $191.0 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $5,194.7 Mil.
Property, Plant and Equipment(Net PPE) was $7.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.9 Mil.
Selling, General & Admin. Expense(SGA) was $34.3 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $675.2 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)
=(19.06 / 272.911) / (14.094 / 191.026)
=0.06983962 / 0.07378053
=0.9466

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)
=(68.917 / 191.026) / (79.391 / 272.911)
=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 + 10.435) / 6662.215) / (1 - (0 + 7.459) / 5194.721)
=0.9984337 / 0.99856412
=0.9999

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
=272.911 / 191.026
=1.4287

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))
=(2.94 / (2.94 + 7.459)) / (3.796 / (3.796 + 10.435))
=0.28271949 / 0.26674162
=1.0599

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)
=(52.801 / 272.911) / (34.34 / 191.026)
=0.19347333 / 0.17976611
=1.0763

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)
=((763.155 + 0) / 6662.215) / ((675.155 + 0) / 5194.721)
=0.11454974 / 0.12996944
=0.8814

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
=(99.119 - 0 - 123.259) / 6662.215
=-0.0036

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 -2.13 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 0.88041.23331.56060.74030.61481.52471.00451.08890.48311.0116
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 -2.12-1.78-2.25-2.21-1.74-2.27-2.15-2.29-2.00-1.97

BofI Holding Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.87070.92151.05091.15111.29731.11551.11341.01631.02310.9466
GMI 1111111111
AQI 1.00011.00021.00060.99951.00051.00031.00031.00011.00020.9999
SGI 1.32451.28061.25151.23361.29151.34181.39271.43861.42241.4287
DEPI 0.76990.71020.65211.29140.91841.01061.07381.08370.93561.0599
SGAI 1.05371.02960.95880.4830.50330.51990.57991.01171.02881.0763
LVGI 1.28781.11130.98741.07861.11210.63170.6860.62630.58950.8814
TATA -0.0197-0.0113-0.01340.00790.00860.00410.0057-0.0057-0.0013-0.0036
M-score -2.53-2.43-2.30-2.00-1.87-1.85-1.82-1.97-1.97-2.13
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