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First United Corp (NAS:FUNC)
Beneish M-Score
-2.38 (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.

First United Corp has a M-score of -2.38 suggests that the company is not a manipulator.

FUNC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.09   Max: 1.96
Current: -2.38

-3.09
1.96

During the past 13 years, the highest Beneish M-Score of First United Corp was 1.96. The lowest was -3.09. And the median was -2.49.


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 First United 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 * 0.8121+0.528 * 1+0.404 * 0.9987+0.892 * 1.2421+0.115 * 1.0795
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8235+4.679 * -0.0069-0.327 * 0.849
=-2.38

* 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 $20.58 Mil.
Revenue was 13.202 + 13.013 + 21.282 + 12.752 = $60.25 Mil.
Gross Profit was 13.202 + 13.013 + 21.282 + 12.752 = $60.25 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,307.42 Mil.
Property, Plant and Equipment(Net PPE) was $26.09 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.74 Mil.
Selling, General & Admin. Expense(SGA) was $25.78 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $146.76 Mil.
Net Income was 1.704 + 1.871 + 6.385 + 1.948 = $11.91 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.346 + 4.142 + 13.112 + 3.315 = $20.92 Mil.
Accounts Receivable was $20.40 Mil.
Revenue was 12.035 + 11.95 + 12.361 + 12.159 = $48.51 Mil.
Gross Profit was 12.035 + 11.95 + 12.361 + 12.159 = $48.51 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,343.07 Mil.
Property, Plant and Equipment(Net PPE) was $25.11 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.82 Mil.
Selling, General & Admin. Expense(SGA) was $25.20 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $177.57 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)
=(20.578 / 60.249) / (20.4 / 48.505)
=0.34154924 / 0.4205752
=0.8121

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)
=(48.505 / 48.505) / (60.249 / 60.249)
=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 + 26.094) / 1307.422) / (1 - (0 + 25.108) / 1343.071)
=0.98004164 / 0.98130553
=0.9987

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
=60.249 / 48.505
=1.2421

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))
=(1.816 / (1.816 + 25.108)) / (1.739 / (1.739 + 26.094))
=0.06744912 / 0.06247979
=1.0795

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)
=(25.778 / 60.249) / (25.201 / 48.505)
=0.42785772 / 0.51955469
=0.8235

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)
=((146.756 + 0) / 1307.422) / ((177.572 + 0) / 1343.071)
=0.11224838 / 0.13221341
=0.849

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
=(11.908 - 0 - 20.915) / 1307.422
=-0.0069

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.

First United Corp has a M-score of -2.38 suggests that the company will not 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.

First United Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.921.19640.79943.30180.86560.49040.88811.21840.78970.7595
GMI 1111111111
AQI 0.99851.00091.00231.00080.99870.99720.99991.00221.0011.0002
SGI 1.011.07911.11150.64221.00511.30540.98070.94610.95981.1745
DEPI 1.27650.97440.92010.94921.19251.14651.23530.89761.00391.0723
SGAI 1.02541.00161.01411.70291.09410.6940.98031.08031.0280.9087
LVGI 1.25890.97891.40260.91670.92361.03880.92940.98971.0010.8133
TATA -0.0004-0.0011-0.0052-0.0088-0.0897-0.0427-0.008-0.00910.0013-0.0086
M-score -2.60-2.23-2.73-0.82-2.99-2.82-2.58-2.39-2.71-2.50

First United Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.04321.27951.27670.78920.7090.80290.75350.76130.83060.8121
GMI 1111111111
AQI 1.00251.00221.00091.0011.00081.00111.00061.00020.99970.9987
SGI 0.95730.98530.91850.96050.98050.94440.99951.17181.1921.2421
DEPI 0.89450.90970.98341.00391.0351.05271.0651.07231.06361.0795
SGAI 1.0611.05381.11181.02721.03041.06811.0390.90760.88040.8235
LVGI 0.97551.00091.00731.0010.98240.9610.81510.81330.84080.849
TATA -0.0043-0.0028-0.0010.0013-0.0037-0.0023-0.0026-0.0086-0.0096-0.0069
M-score -2.51-2.27-2.33-2.71-2.78-2.71-2.66-2.50-2.43-2.38
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