American Coastal Insurance (FRA:0UI) Beneish M-Score : -3.29 (As of May. 16, 2024)

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What is American Coastal Insurance Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

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.

Good Sign:

Beneish M-Score -3.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for American Coastal Insurance's Beneish M-Score or its related term are showing as below:

FRA:0UI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.29 Med: -2.15 Max: 12.64
Current: -3.29

During the past 13 years, the highest Beneish M-Score of American Coastal Insurance was 12.64. The lowest was -3.29. And the median was -2.15.

American Coastal Insurance 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 American Coastal Insurance for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.423

0.528 * 1

0.404 * 1.003

0.892 * 0.8619

0.115 * 1.127

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7797

4.679 * -0.024687

0.327 * 1.3329

-3.30

* 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 (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €286.2 Mil.
Revenue was 67.348 + 53.382 + 55.015 + 73.189 = €248.9 Mil.
Gross Profit was 67.348 + 53.382 + 55.015 + 73.189 = €248.9 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €991.1 Mil.
Property, Plant and Equipment(Net PPE) was €9.5 Mil.
Depreciation, Depletion and Amortization(DDA) was €9.8 Mil.
Selling, General, & Admin. Expense(SGA) was €27.9 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €137.0 Mil.
Net Income was 21.711 + 13.098 + 9.902 + 16.41 = €61.1 Mil.
Non Operating Income was 0.015 + 0.025 + 0.017 + 0.017 = €0.1 Mil.
Cash Flow from Operations was 114.525 + 44.828 + 44.914 + -118.752 = €85.5 Mil.

Total Receivables was €785.0 Mil.
Revenue was 84.359 + 70.514 + 73.48 + 60.459 = €288.8 Mil.
Gross Profit was 84.359 + 70.514 + 73.48 + 60.459 = €288.8 Mil.
Total Current Assets was €0.0 Mil.
Total Assets was €1,350.0 Mil.
Property, Plant and Equipment(Net PPE) was €16.9 Mil.
Depreciation, Depletion and Amortization(DDA) was €22.6 Mil.
Selling, General, & Admin. Expense(SGA) was €41.6 Mil.
Total Current Liabilities was €0.0 Mil.
Long-Term Debt & Capital Lease Obligation was €140.0 Mil.

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)
	=	(286.194 / 248.934)	/	(784.999 / 288.812)
	=	1.149678	/	2.718028
	=	0.423

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)
	=	(288.812 / 288.812)	/	(248.934 / 248.934)
	=	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 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 - (0 + 9.523) / 991.126)	/	(1 - (0 + 16.922) / 1349.991)
	=	0.990392	/	0.987465
	=	1.003

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
	=	248.934	/	288.812
	=	0.8619

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))
	=	(22.622 / (22.622 + 16.922))	/	(9.817 / (9.817 + 9.523))
	=	0.572072	/	0.507601
	=	1.127

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)
	=	(27.947 / 248.934)	/	(41.584 / 288.812)
	=	0.112267	/	0.143983
	=	0.7797

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)
	=	((136.966 + 0) / 991.126)	/	((139.96 + 0) / 1349.991)
	=	0.138192	/	0.103675
	=	1.3329

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
	=	(61.121 - 0.074	-	85.515)	/	991.126
	=	-0.024687

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.

American Coastal Insurance has a M-score of -3.30 suggests that the company is unlikely to be a manipulator.

American Coastal Insurance Beneish M-Score Related Terms

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American Coastal Insurance (FRA:0UI) Business Description

Industry

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Traded in Other Exchanges

ACIC:USA

Address

800 2nd Avenue South, Saint Petersburg, FL, USA, 33701

Website

https://www.amcoastal.com

American Coastal Insurance Corp is a holding company that underwrites commercial residential property and casualty insurance policies in the United States through its wholly-owned insurance subsidiary.