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Hudson City Bancorp Inc (NAS:HCBK)
Beneish M-Score
0.00 (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.

Hudson City Bancorp Inc has a M-score of -3.00 suggests that the company is not a manipulator.

During the past 13 years, the highest Beneish M-Score of Hudson City Bancorp Inc was 0.00. The lowest was 0.00. And the median was 0.00.


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 Hudson City Bancorp Inc 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 * 0.5568+0.528 * 1+0.404 * 1.0001+0.892 * 0.8002+0.115 * 1.8616
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.134+4.679 * 0.0018-0.327 * 1.0645
=-3.00

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $20.4 Mil.
Revenue was 125.154 + 84.368 + 134.686 + 128.876 = $473.1 Mil.
Gross Profit was 125.154 + 84.368 + 134.686 + 128.876 = $473.1 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $35,417.5 Mil.
Property, Plant and Equipment(Net PPE) was $52.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.4 Mil.
Selling, General & Admin. Expense(SGA) was $173.6 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $6,025.0 Mil.
Net Income was 35.657 + 5.89 + 39.136 + 37.126 = $117.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -28.186 + 16.295 + 21.274 + 44.042 = $53.4 Mil.
Accounts Receivable was $45.7 Mil.
Revenue was 138.866 + 150.094 + 149.376 + 152.869 = $591.2 Mil.
Gross Profit was 138.866 + 150.094 + 149.376 + 152.869 = $591.2 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $37,700.6 Mil.
Property, Plant and Equipment(Net PPE) was $61.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $71.7 Mil.
Selling, General & Admin. Expense(SGA) was $191.3 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $6,025.0 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)
=(20.355 / 473.084) / (45.681 / 591.205)
=0.04302619 / 0.07726761
=0.5568

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)
=(84.368 / 591.205) / (125.154 / 473.084)
=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 + 52.42) / 35417.458) / (1 - (0 + 61.074) / 37700.645)
=0.99851994 / 0.99838003
=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
=473.084 / 591.205
=0.8002

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))
=(71.709 / (71.709 + 61.074)) / (21.421 / (21.421 + 52.42))
=0.54004654 / 0.29009629
=1.8616

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)
=(173.628 / 473.084) / (191.333 / 591.205)
=0.36701305 / 0.32363224
=1.134

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)
=((6025 + 0) / 35417.458) / ((6025 + 0) / 37700.645)
=0.17011385 / 0.15981159
=1.0645

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
=(117.809 - 0 - 53.425) / 35417.458
=0.0018

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.

Hudson City Bancorp Inc has a M-score of -3.00 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.

Hudson City Bancorp Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.2698125.08680.01210.84010.75680.76170.65010.85340.80660.7061
GMI 1111111111
AQI 1.00010.99961.00051.00031.000210.99960.99971.00021.0001
SGI 1.13680.011104.03051.45231.34361.06010.80870.79040.7530.8479
DEPI 2.31940.77540.96190.87370.5440.77331.00810.99460.98271.6533
SGAI 0.9243112.66340.00990.84930.97431.03971.52551.36911.08091.0247
LVGI 1.13910.56082.39690.5140.88360.98530.73660.71851.05151.2174
TATA -0.0002-0.0009-0.0012-0.00020.0001-0.0036-0.0369-0.008-0.01440.0002
M-score -1.9991.7088.22-2.05-2.41-2.69-3.15-2.81-2.98-2.89

Hudson City Bancorp Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.84820.82740.7850.80660.86810.79120.85120.70610.68950.5568
GMI 1111111111
AQI 0.99980.99991.00011.00021.00021.00011.00011.00011.00011.0001
SGI 0.83330.81440.79210.7530.76920.78760.81350.84790.78290.8002
DEPI 0.95750.93880.92020.98271.02051.1961.42241.65332.18881.8616
SGAI 1.13341.15391.11981.08091.0691.03380.99741.02471.14151.134
LVGI 0.79230.88610.9351.05151.21511.21421.2161.21741.05821.0645
TATA -0.0158-0.0159-0.0152-0.0144-0.0038-0.002-0.00140.00020.00060.0018
M-score -2.80-2.88-2.94-2.98-2.90-2.92-2.81-2.89-2.86-3.00
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