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Bank of Hawaii Corp (NYSE:BOH)
Beneish M-Score
-2.61 (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.

Bank of Hawaii Corp has a M-score of -2.61 suggests that the company is not a manipulator.

BOH' s Beneish M-Score Range Over the Past 10 Years
Min: -4.27   Max: -0.2
Current: -2.61

-4.27
-0.2

During the past 13 years, the highest Beneish M-Score of Bank of Hawaii Corp was -0.20. The lowest was -4.27. And the median was -2.45.

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 Bank of Hawaii 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 * 0.9911 + 0.528 * 1 + 0.404 * 1.0002 + 0.892 * 1.0369 + 0.115 * 0.9878 - 0.172 * SGAI + 4.679 * TATA - 0.327 * LVGI - 0.172 * 1.0034 + 4.679 * 0.0036 - 0.327 * 1.5081 = -2.61

* 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 \$45.7 Mil. Revenue was 150.069 + 159.231 + 146.41 + 141.112 = \$596.8 Mil. Gross Profit was 150.069 + 159.231 + 146.41 + 141.112 = \$596.8 Mil. Total Current Assets was \$0.0 Mil. Total Assets was \$15,860.9 Mil. Property, Plant and Equipment(Net PPE) was \$109.8 Mil. Depreciation, Depletion and Amortization(DDA) was \$13.0 Mil. Selling, General & Admin. Expense(SGA) was \$251.0 Mil. Total Current Liabilities was \$0.0 Mil. Long-Term Debt was \$268.0 Mil. Net Income was 44.245 + 50.21 + 42.832 + 34.276 = \$171.6 Mil. Non Operating Income was 0 + 0 + 0 + 0 = \$0.0 Mil. Cash Flow from Operations was -46.177 + 42.447 + 64.445 + 53.516 = \$114.2 Mil. Accounts Receivable was \$44.5 Mil. Revenue was 143.707 + 149.077 + 142.45 + 140.329 = \$575.6 Mil. Gross Profit was 143.707 + 149.077 + 142.45 + 140.329 = \$575.6 Mil. Total Current Assets was \$0.0 Mil. Total Assets was \$15,248.0 Mil. Property, Plant and Equipment(Net PPE) was \$108.4 Mil. Depreciation, Depletion and Amortization(DDA) was \$12.7 Mil. Selling, General & Admin. Expense(SGA) was \$241.2 Mil. Total Current Liabilities was \$0.0 Mil. Long-Term Debt was \$170.8 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of daysÂ’ 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) = (45.709 / 596.822) / (44.475 / 575.563) = 0.07658732 / 0.07727217 = 0.9911

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) = (575.563 / 575.563) / (596.822 / 596.822) = 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 + 109.832) / 15860.901) / (1 - (0 + 108.439) / 15248.043) = 0.9930753 / 0.99288833 = 1.0002

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 = 596.822 / 575.563 = 1.0369

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)) = (12.656 / (12.656 + 108.439)) / (12.995 / (12.995 + 109.832)) = 0.10451299 / 0.10579921 = 0.9878

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) = (251.014 / 596.822) / (241.246 / 575.563) = 0.42058436 / 0.41914786 = 1.0034

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) = ((267.97 + 0) / 15860.901) / ((170.816 + 0) / 15248.043) = 0.016895 / 0.01120249 = 1.5081

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 = (171.563 - 0 - 114.231) / 15860.901 = 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.

Bank of Hawaii Corp has a M-score of -2.61 suggests that the company will not be a manipulator.

Related Terms

Historical Data

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

Bank of Hawaii Corp Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 DSRI 1.1409 0.8942 0.3652 0.7812 3.0602 1.1902 0.3241 3.3595 0.9901 0.9658 GMI 1 1 1 1 1 1 1 1 1 1 AQI 1.0013 1.0007 1.0004 1.0019 1.0007 1.0008 0.9998 0.9999 1.0003 1.0002 SGI 1.0038 1.027 1.0651 1.0048 0.9729 0.8884 0.9825 0.9439 1.0267 1.0369 DEPI 1.3496 1.0286 1.0606 1.0166 0.9848 0.8926 1.0636 1.1586 0.9871 0.9866 SGAI 0.997 0.998 1.0043 1.0592 0.9897 1.1708 1.0142 1.186 0.9738 1.01 LVGI 1.0334 0.9128 0.8404 0.3852 0.3419 0.8912 4.2076 1.3298 0.9481 1.3522 TATA -0.0027 -0.0048 0.0007 -0.0114 -0.0017 -0.005 -0.0041 -0.0065 -0.0031 -0.0047 M-score -2.33 -2.54 -2.94 -2.54 -0.40 -2.43 -4.18 -0.51 -2.46 -2.62

Bank of Hawaii Corp Quarterly Data

 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 DSRI 1.0441 0.29 1.0063 0.9901 0.4873 3.4468 0.9803 0.9658 1.9442 0.9911 GMI 1 1 1 1 1 1 1 1 1 1 AQI 1.0002 1.0004 1.0002 1.0003 1.0003 1.0002 1.0002 1.0002 1.0001 1.0002 SGI 0.9629 0.9809 1.0065 1.0267 1.0438 1.0459 1.0392 1.0369 1.0345 1.0369 DEPI 1.1202 1.0837 1.0361 0.9871 0.9836 0.9698 0.9859 0.9866 0.9906 0.9878 SGAI 1.2242 1.1986 1.202 0.9738 1.0004 1.0055 1.0246 1.0345 1.0034 1.0034 LVGI 0.9337 0.9196 0.9501 0.9481 0.9378 0.9575 1.4898 1.3522 1.2277 1.5081 TATA -0.0077 -0.0025 -0.0031 -0.0031 -0.0021 -0.0056 -0.0057 -0.0047 -0.0044 0.0036 M-score -2.51 -3.16 -2.50 -2.46 -2.90 -0.20 -2.66 -2.62 -1.68 -2.61
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