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First United Corp (NAS:FUNC)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

FUNC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98   Max: -0.8
Current: -2.5

-2.98
-0.8

During the past 13 years, the highest Beneish M-Score of First United Corp was -0.80. The lowest was -2.98. And the median was -2.50.


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 * 0.7601+0.528 * 1+0.404 * 1.0002+0.892 * 1.1737+0.115 * 1.0723
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9094+4.679 * -0.0086-0.327 * 0.8133
=-2.50

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $19.50 Mil.
Revenue was 21.282 + 12.752 + 12.141 + 11.937 = $58.11 Mil.
Gross Profit was 21.282 + 12.752 + 12.141 + 11.937 = $58.11 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,323.46 Mil.
Property, Plant and Equipment(Net PPE) was $25.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.77 Mil.
Selling, General & Admin. Expense(SGA) was $26.21 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $147.54 Mil.
Net Income was 6.385 + 1.948 + 1.175 + 1.368 = $10.88 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 13.112 + 3.315 + 3.57 + 2.202 = $22.20 Mil.
Accounts Receivable was $21.85 Mil.
Revenue was 12.361 + 12.159 + 13.096 + 11.896 = $49.51 Mil.
Gross Profit was 12.361 + 12.159 + 13.096 + 11.896 = $49.51 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,332.30 Mil.
Property, Plant and Equipment(Net PPE) was $25.63 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.94 Mil.
Selling, General & Admin. Expense(SGA) was $24.56 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $182.61 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)
=(19.495 / 58.112) / (21.853 / 49.512)
=0.33547288 / 0.44136775
=0.7601

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)
=(12.752 / 49.512) / (21.282 / 58.112)
=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 + 25.198) / 1323.458) / (1 - (0 + 25.629) / 1332.296)
=0.98096048 / 0.98076328
=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
=58.112 / 49.512
=1.1737

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))
=(1.938 / (1.938 + 25.629)) / (1.768 / (1.768 + 25.198))
=0.07030145 / 0.06556404
=1.0723

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)
=(26.211 / 58.112) / (24.558 / 49.512)
=0.45104281 / 0.49600097
=0.9094

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)
=((147.537 + 0) / 1323.458) / ((182.606 + 0) / 1332.296)
=0.11147841 / 0.13706113
=0.8133

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
=(10.876 - 0 - 22.199) / 1323.458
=-0.0086

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 -2.50 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.8531.21991.04321.27951.27670.78920.70920.80130.7520.7601
GMI 1111111111
AQI 1.00151.00221.00251.00221.00091.0011.00081.00111.00061.0002
SGI 0.94310.94490.95730.98530.91850.96050.98020.94621.00141.1737
DEPI 0.95760.89760.89450.90970.98341.00391.0351.05271.0651.0723
SGAI 1.0441.08171.0611.05381.11181.02721.03071.071.04080.9094
LVGI 1.01260.98970.97551.00091.00731.0010.98240.9610.81510.8133
TATA -0.0097-0.0091-0.0043-0.0028-0.0010.0013-0.0037-0.0023-0.0026-0.0086
M-score -2.73-2.39-2.51-2.27-2.33-2.71-2.78-2.71-2.66-2.50
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