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National Bank Holdings Corp (NYSE:NBHC)
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.

National Bank Holdings Corp has a M-score of -2.38 suggests that the company is not a manipulator.

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

During the past 7 years, the highest Beneish M-Score of National Bank Holdings Corp was -2.38. The lowest was -2.38. And the median was -2.38.


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 National Bank Holdings 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 * 1+0.528 * 1+0.404 * 1.0001+0.892 * 1.0584+0.115 * 0.9968
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9385+4.679 * 0.0091-0.327 * 1.029
=-2.38

* 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 $0.0 Mil.
Revenue was 55.348 + 42.443 + 41.602 + 39 = $178.4 Mil.
Gross Profit was 55.348 + 42.443 + 41.602 + 39 = $178.4 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,683.9 Mil.
Property, Plant and Equipment(Net PPE) was $103.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.5 Mil.
Selling, General & Admin. Expense(SGA) was $102.8 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $40.0 Mil.
Net Income was 3.34 + 1.636 + -1.341 + 1.246 = $4.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -22.427 + 7.597 + -8.389 + -14.433 = $-37.7 Mil.
Accounts Receivable was $0.0 Mil.
Revenue was 37.467 + 43.509 + 44.584 + 42.993 = $168.6 Mil.
Gross Profit was 37.467 + 43.509 + 44.584 + 42.993 = $168.6 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,819.6 Mil.
Property, Plant and Equipment(Net PPE) was $106.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.9 Mil.
Selling, General & Admin. Expense(SGA) was $103.5 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $40.0 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)
=(0 / 178.393) / (0 / 168.553)
=0 / 0
=1

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)
=(42.443 / 168.553) / (55.348 / 178.393)
=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 + 103.103) / 4683.908) / (1 - (0 + 106.341) / 4819.646)
=0.97798783 / 0.97793593
=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
=178.393 / 168.553
=1.0584

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))
=(15.93 / (15.93 + 106.341)) / (15.502 / (15.502 + 103.103))
=0.13028437 / 0.13070275
=0.9968

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)
=(102.772 / 178.393) / (103.462 / 168.553)
=0.57609884 / 0.61382473
=0.9385

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)
=((40 + 0) / 4683.908) / ((40 + 0) / 4819.646)
=0.00853988 / 0.00829936
=1.029

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
=(4.881 - 0 - -37.652) / 4683.908
=0.0091

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.

National Bank Holdings 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.

National Bank Holdings Corp Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1
GMI 1
AQI 1.0001
SGI 1.0584
DEPI 0.9968
SGAI 0.9385
LVGI 1.029
TATA 0.0091
M-score -2.38

National Bank Holdings Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 11
GMI 11
AQI 1.00010.9987
SGI 1.05841.1264
DEPI 0.99681.1582
SGAI 0.93850.8492
LVGI 1.0291.0813
TATA 0.00910.0059
M-score -2.38-2.32
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