Encore Capital Group Beneish M-Score Historical Data
The historical data trend for Encore Capital Group's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Encore Capital Group Beneish M-Score Chart
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Encore Capital Group Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.78 |
-2.88 |
-2.53 |
-2.78 |
-2.98 |
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Encore Capital Group Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.78 |
-2.83 |
-2.71 |
-3.05 |
-2.98 |
Competitive Comparison of Encore Capital Group's Beneish M-Score
For the Mortgage Finance subindustry, Encore Capital Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Encore Capital Group's Beneish M-Score Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Encore Capital Group's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Encore Capital Group's Beneish M-Score falls into.
Encore Capital Group Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Encore Capital Group 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 * 0.6452 | + | 0.528 * 1.1782 | + | 0.404 * 1.0055 | + | 0.892 * 0.8744 | + | 0.115 * 1.0268 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1363 | + | 4.679 * -0.023245 | - | 0.327 * 1.1028 |
| = | -2.98 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $9 Mil.
Revenue was 277.387 + 309.619 + 323.044 + 312.63 = $1,223 Mil.
Gross Profit was 114.826 + 150.232 + 159.652 + 146.529 = $571 Mil.
Total Current Assets was $209 Mil.
Total Assets was $4,630 Mil.
Property, Plant and Equipment(Net PPE) was $171 Mil.
Depreciation, Depletion and Amortization(DDA) was $42 Mil.
Selling, General, & Admin. Expense(SGA) was $145 Mil.
Total Current Liabilities was $690 Mil.
Long-Term Debt & Capital Lease Obligation was $2,818 Mil.
Net Income was -270.762 + 19.339 + 26.305 + 18.626 = $-206 Mil.
Non Operating Income was -256.928 + 5.103 + -1.755 + 1.732 = $-252 Mil.
Cash Flow from Operations was 36.78 + 53.588 + 26.71 + 35.913 = $153 Mil.
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Total Receivables was $16 Mil.
Revenue was 233.996 + 307.752 + 356.917 + 499.682 = $1,398 Mil.
Gross Profit was 81.594 + 157.736 + 192.966 + 337.404 = $770 Mil.
Total Current Assets was $209 Mil.
Total Assets was $4,508 Mil.
Property, Plant and Equipment(Net PPE) was $184 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General, & Admin. Expense(SGA) was $146 Mil.
Total Current Liabilities was $622 Mil.
Long-Term Debt & Capital Lease Obligation was $2,475 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (9.08 / 1222.68) | / | (16.094 / 1398.347) |
| = | 0.007426 | / | 0.011509 |
| | = | 0.6452 |
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) |
| = | (769.7 / 1398.347) | / | (571.239 / 1222.68) |
| = | 0.550436 | / | 0.467202 |
| | = | 1.1782 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (209.089 + 170.978) / 4630.486) | / | (1 - (208.641 + 183.974) / 4508.36) |
| = | 0.917921 | / | 0.912914 |
| | = | 1.0055 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 1222.68 | / | 1398.347 |
| | = | 0.8744 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (46.419 / (46.419 + 183.974)) | / | (41.737 / (41.737 + 170.978)) |
| = | 0.201477 | / | 0.196211 |
| | = | 1.0268 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (144.862 / 1222.68) | / | (145.798 / 1398.347) |
| = | 0.118479 | / | 0.104265 |
| | = | 1.1363 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((2818.385 + 689.574) / 4630.486) | / | ((2475.299 + 621.739) / 4508.36) |
| = | 0.757579 | / | 0.686954 |
| | = | 1.1028 |
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 |
| = | (-206.492 - -251.848 | - | 152.991) | / | 4630.486 |
| | = | -0.023245 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Encore Capital Group has a M-score of -2.98 suggests that the company is unlikely to be a manipulator.
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