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Bank of Hawaii Corp (NYSE:BOH)
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.

Bank of Hawaii Corp has a M-score of -1.68 signals that the company is a manipulator.

BOH' s Beneish M-Score Range Over the Past 10 Years
Min: -4.27   Max: -0.2
Current: -1.68

-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 * 1.9442+0.528 * 1+0.404 * 1.0001+0.892 * 1.0345+0.115 * 0.9906
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0034+4.679 * -0.0044-0.327 * 1.2277
=-1.68

* 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 $47.5 Mil.
Revenue was 159.231 + 146.41 + 141.112 + 143.707 = $590.5 Mil.
Gross Profit was 159.231 + 146.41 + 141.112 + 143.707 = $590.5 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $15,654.7 Mil.
Property, Plant and Equipment(Net PPE) was $111.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.9 Mil.
Selling, General & Admin. Expense(SGA) was $248.0 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $220.8 Mil.
Net Income was 50.21 + 42.832 + 34.276 + 41.154 = $168.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 42.447 + 64.445 + 53.516 + 76.964 = $237.4 Mil.
Accounts Receivable was $23.6 Mil.
Revenue was 149.077 + 142.45 + 140.329 + 138.893 = $570.7 Mil.
Gross Profit was 149.077 + 142.45 + 140.329 + 138.893 = $570.7 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $15,139.2 Mil.
Property, Plant and Equipment(Net PPE) was $109.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.5 Mil.
Selling, General & Admin. Expense(SGA) was $238.9 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $173.9 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)
=(47.504 / 590.46) / (23.618 / 570.749)
=0.08045253 / 0.04138071
=1.9442

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)
=(146.41 / 570.749) / (159.231 / 590.46)
=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 + 111.086) / 15654.695) / (1 - (0 + 109.223) / 15139.179)
=0.99290398 / 0.99278541
=1.0001

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
=590.46 / 570.749
=1.0345

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))
=(12.549 / (12.549 + 109.223)) / (12.898 / (12.898 + 111.086))
=0.10305325 / 0.10402955
=0.9906

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)
=(247.96 / 590.46) / (238.873 / 570.749)
=0.41994377 / 0.41852548
=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)
=((220.771 + 0) / 15654.695) / ((173.898 + 0) / 15139.179)
=0.01410254 / 0.01148662
=1.2277

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
=(168.472 - 0 - 237.372) / 15654.695
=-0.0044

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 -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.

Bank of Hawaii Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.14090.89420.36520.78123.06021.19020.32413.35950.99010.9658
GMI 1111111111
AQI 1.00131.00071.00041.00191.00071.00080.99980.99991.00031.0002
SGI 1.00381.0271.06511.00480.97290.88840.98250.94391.02671.0369
DEPI 1.34961.02861.09070.98850.98480.89261.06361.15860.98710.9866
SGAI 0.9970.9980.99641.06760.98971.0911.01851.13410.97461.1278
LVGI 1.03340.91280.84040.38520.34190.89124.20761.32980.94811.3522
TATA -0.0027-0.00480.0007-0.0126-0.0012-0.005-0.0041-0.0065-0.0031-0.0047
M-score -2.33-2.54-2.94-2.55-0.40-2.42-4.18-0.50-2.46-2.64

Bank of Hawaii Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 3.35951.04410.291.00630.99010.48733.44680.98030.96581.9442
GMI 1111111111
AQI 0.99991.00021.00041.00021.00031.00031.00021.00021.00021.0001
SGI 0.94390.96290.98091.00651.02671.04381.04591.03921.03691.0345
DEPI 1.15861.12021.08371.03610.98710.98360.96980.98590.98660.9906
SGAI 1.28771.22421.19861.2020.97381.00041.00551.02461.03451.0034
LVGI 1.32980.93370.91960.95010.94810.93780.95751.48981.35221.2277
TATA -0.0065-0.0077-0.0025-0.0031-0.0031-0.0021-0.0056-0.0057-0.0047-0.0044
M-score -0.53-2.51-3.16-2.50-2.46-2.90-0.20-2.66-2.62-1.68
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