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BofI Holding Inc (NAS:BOFI)
Beneish M-Score
-2.17 (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 -2.17 signals that the company is a manipulator.

BOFI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.29   Max: -1.74
Current: -2.17

-2.29
-1.74

During the past 13 years, the highest Beneish M-Score of BofI Holding Inc was -1.74. The lowest was -2.29. And the median was -2.16.


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 * 0.9064+0.528 * 1+0.404 * 0.9996+0.892 * 1.4261+0.115 * 1.0847
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0342+4.679 * -0.012-0.327 * 0.7933
=-2.17

* 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 $26.2 Mil.
Revenue was 86.17 + 92.873 + 79.391 + 68.917 = $327.4 Mil.
Gross Profit was 86.17 + 92.873 + 79.391 + 68.917 = $327.4 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $7,601.4 Mil.
Property, Plant and Equipment(Net PPE) was $14.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.8 Mil.
Selling, General & Admin. Expense(SGA) was $99.0 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $785.1 Mil.
Net Income was 29.727 + 35.914 + 28.149 + 25.501 = $119.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 107.471 + 33.76 + 27.953 + 41.46 = $210.6 Mil.
Accounts Receivable was $20.3 Mil.
Revenue was 65.572 + 59.031 + 54.808 + 50.124 = $229.5 Mil.
Gross Profit was 65.572 + 59.031 + 54.808 + 50.124 = $229.5 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $5,823.7 Mil.
Property, Plant and Equipment(Net PPE) was $8.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.3 Mil.
Selling, General & Admin. Expense(SGA) was $67.1 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $758.2 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)
=(26.201 / 327.351) / (20.268 / 229.535)
=0.08003947 / 0.08830026
=0.9064

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)
=(229.535 / 229.535) / (327.351 / 327.351)
=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 + 13.995) / 7601.354) / (1 - (0 + 8.551) / 5823.719)
=0.99815888 / 0.99853169
=0.9996

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
=327.351 / 229.535
=1.4261

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))
=(3.273 / (3.273 + 8.551)) / (4.795 / (4.795 + 13.995))
=0.27680988 / 0.25518893
=1.0847

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)
=(98.981 / 327.351) / (67.112 / 229.535)
=0.30236963 / 0.29238243
=1.0342

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)
=((785.066 + 0) / 7601.354) / ((758.155 + 0) / 5823.719)
=0.10327976 / 0.13018399
=0.7933

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
=(119.291 - 0 - 210.644) / 7601.354
=-0.012

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 -2.17 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

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 1.6480.59190.66840.43241.15640.8330.91631.15111.01630.9064
GMI 1111111111
AQI 10.999910.99990.99880.99981.00090.99951.00010.9996
SGI 1.06471.61281.52961.98621.12851.43681.35351.23361.43861.4261
DEPI 1.01213.57220.89591.02621.67520.71280.59351.29141.08371.0847
SGAI 1.23331.56060.74030.61481.52471.00451.08890.88010.94311.0342
LVGI 0.75031.37890.97160.40271.21721.11051.07671.07860.62630.7933
TATA 0.0016-0.00430.01330.02540.00850.03590.00790.0079-0.0057-0.012
M-score -1.78-2.25-2.21-1.74-2.27-2.15-2.29-2.07-1.96-2.17

BofI Holding Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.05091.15111.29731.11551.11341.01631.02310.94660.90280.9064
GMI 1111111111
AQI 1.00060.99951.00051.00031.00031.00011.00020.99990.99980.9996
SGI 1.25151.23361.29151.34181.39271.43861.42241.42871.46641.4261
DEPI 0.65211.29140.91841.01061.07381.08370.93561.05991.12011.0847
SGAI 0.95880.880.86790.85770.90620.94320.96190.99340.9831.0342
LVGI 0.98741.07861.11210.63170.6860.62630.58950.88141.11510.7933
TATA -0.01340.00790.00860.00410.0057-0.0057-0.0013-0.0036-0.0013-0.012
M-score -2.30-2.07-1.93-1.90-1.87-1.96-1.95-2.12-2.18-2.17
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