JMP Group LLC (JMP Group LLC) Beneish M-Score : -2.33 (As of May. 07, 2024)

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What is JMP Group LLC 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 -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for JMP Group LLC's Beneish M-Score or its related term are showing as below:

JMP' s Beneish M-Score Range Over the Past 10 Years
Min: -5.53 Med: -2.2 Max: 4.97
Current: -2.33

During the past 13 years, the highest Beneish M-Score of JMP Group LLC was 4.97. The lowest was -5.53. And the median was -2.20.

JMP Group LLC 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 JMP Group LLC 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 * 0.6506

0.528 * 1

0.404 * 1.0332

0.892 * 2.6281

0.115 * 1.4112

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.575

4.679 * -0.18773

0.327 * 0.4349

-1.91

* 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 (Sep21) TTM:

Last Year (Sep20) TTM:

Total Receivables was $31.9 Mil.
Revenue was 73.106 + 46.765 + 36.703 + 51.941 = $208.5 Mil.
Gross Profit was 73.106 + 46.765 + 36.703 + 51.941 = $208.5 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $239.8 Mil.
Property, Plant and Equipment(Net PPE) was $15.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.7 Mil.
Selling, General, & Admin. Expense(SGA) was $149.5 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $55.7 Mil.
Net Income was 21.819 + 3.628 + 1.089 + 9.009 = $35.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 36.1 + 30.372 + -20.331 + 34.419 = $80.6 Mil.

Total Receivables was $18.6 Mil.
Revenue was 25.014 + 28.396 + 3.348 + 22.583 = $79.3 Mil.
Gross Profit was 25.014 + 28.396 + 3.348 + 22.583 = $79.3 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $212.7 Mil.
Property, Plant and Equipment(Net PPE) was $20.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.2 Mil.
Selling, General, & Admin. Expense(SGA) was $98.9 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $113.7 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)
	=	(31.864 / 208.515)	/	(18.635 / 79.341)
	=	0.152814	/	0.234872
	=	0.6506

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)
	=	(79.341 / 79.341)	/	(208.515 / 208.515)
	=	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 + 15.919) / 239.786)	/	(1 - (0 + 20.493) / 212.657)
	=	0.933612	/	0.903634
	=	1.0332

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
	=	208.515	/	79.341
	=	2.6281

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))
	=	(1.201 / (1.201 + 20.493))	/	(0.65 / (0.65 + 15.919))
	=	0.055361	/	0.03923
	=	1.4112

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)
	=	(149.515 / 208.515)	/	(98.933 / 79.341)
	=	0.717047	/	1.246934
	=	0.575

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)
	=	((55.733 + 0) / 239.786)	/	((113.665 + 0) / 212.657)
	=	0.232428	/	0.534499
	=	0.4349

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
	=	(35.545 - 0	-	80.56)	/	239.786
	=	-0.18773

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.

JMP Group LLC has a M-score of -1.91 suggests that the company is unlikely to be a manipulator.

JMP Group LLC Beneish M-Score Related Terms

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JMP Group LLC (JMP Group LLC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » JMP Group LLC (NYSE:JMP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

600 Montgomery Street, Suite 1100, San Francisco, CA, USA, 94111

Website

http://www.jmpg.com

JMP Group LLC is an investment bank that focuses its investment banking and equity research services on small and middle-market firms in five industries: consumer, financial services, health care, real estate, and technology. JMP provides capital raising, financial advisory, sales and trading, and equity research services. JMP also manages more than $1 billion of assets through its hedge funds and collateralized loan obligation management business.

Executives

Glenn H Tongue	director	600 MONTGOMERY STREET, SUITE 1100, SAN FRANCISCO CA 94111
Craig R Johnson	director	600 MONTGOMERY STREET SAN FRANCISCO CA 94111
Kenneth M Karmin	director	11111 SANTA MONICA BLVD. SUITE 1640 LOS ANGELES CA 90025
Harry Mark Lunenburg	director	C/O TALON CAPITAL 1001 FARMINGTON AVE WEST HARTFORD CT 06107
David M Dipietro	director	10 CHITTENDEN LANE OWINGS MILLS MD 21117
Jonathan M Orszag	director	C/O COMPASS LEXECON 1101 K STREET NW, 8TH FLOOR WASHINGTON DC 20005
Joseph A Jolson	director, 10 percent owner, officer: CEO	600 MONTGOMERY STREET SUITE 1700 SAN FRANCISCO CA 94111
Thomas Rowe Wright	officer: Director of Equities	450 PARK AVENUE 5TH FLOOR NEW YORK NY 10022
Carter D Mack	director, officer: President	600 MONTGOMERY STREET SAN FRANCISCO CA 94111
Raymond Jackson	officer: CFO	600 MONTGOMERY STREET SUITE 1100 SAN FRANCISCO CA 94111
Mark L Lehmann	director, officer: President, JMP Securities	600 MONTGOMERY STREET SAN FRANCISCO CA 94111
Kent Ledbetter	other: executive committee member	600 MONTGOMERY STREET SUITE 1100 SAN FRANCISCO CA 94111