Switch to:
Nicholas Financial Inc (NAS:NICK)
Beneish M-Score
-1.41 (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.

Nicholas Financial Inc has a M-score of -1.41 signals that the company is a manipulator.

NICK' s 10-Year Beneish M-Score Range
Min: -3.37   Max: 40495.15
Current: -1.41

-3.37
40495.15

During the past 13 years, the highest Beneish M-Score of Nicholas Financial Inc was 40495.15. The lowest was -3.37. And the median was -1.39.


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 Nicholas Financial 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 * 1.0175+0.528 * 1+0.404 * 0.8637+0.892 * 1.0504+0.115 * 0.9037
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9503+4.679 * 0.2575-0.327 * 1.4092
=-1.41

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $289.02 Mil.
Revenue was 21.934 + 21.801 + 21.723 + 21.333 = $86.79 Mil.
Gross Profit was 21.934 + 21.801 + 21.723 + 21.333 = $86.79 Mil.
Total Current Assets was $295.30 Mil.
Total Assets was $302.53 Mil.
Property, Plant and Equipment(Net PPE) was $0.87 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.37 Mil.
Selling, General & Admin. Expense(SGA) was $33.62 Mil.
Total Current Liabilities was $209.32 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 3.847 + 3.77 + 4.33 + 4.909 = $16.86 Mil.
Non Operating Income was -21.934 + -21.801 + -21.723 + -21.333 = $-86.79 Mil.
Cash Flow from Operations was 8.267 + 6.125 + 4.364 + 7.003 = $25.76 Mil.
Accounts Receivable was $270.44 Mil.
Revenue was 20.443 + 20.761 + 20.949 + 20.476 = $82.63 Mil.
Gross Profit was 20.443 + 20.761 + 20.949 + 20.476 = $82.63 Mil.
Total Current Assets was $275.66 Mil.
Total Assets was $283.43 Mil.
Property, Plant and Equipment(Net PPE) was $0.87 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.32 Mil.
Selling, General & Admin. Expense(SGA) was $33.68 Mil.
Total Current Liabilities was $139.16 Mil.
Long-Term Debt was $0.00 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)
=(289.017 / 86.791) / (270.437 / 82.629)
=3.33003422 / 3.27290661
=1.0175

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)
=(21.801 / 82.629) / (21.934 / 86.791)
=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 - (295.296 + 0.872) / 302.529) / (1 - (275.66 + 0.87) / 283.43)
=0.02102608 / 0.02434464
=0.8637

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
=86.791 / 82.629
=1.0504

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))
=(0.318 / (0.318 + 0.87)) / (0.367 / (0.367 + 0.872))
=0.26767677 / 0.29620662
=0.9037

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)
=(33.623 / 86.791) / (33.683 / 82.629)
=0.38740192 / 0.40764138
=0.9503

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)
=((0 + 209.317) / 302.529) / ((0 + 139.163) / 283.43)
=0.69189069 / 0.49099601
=1.4092

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
=(16.856 - -86.791 - 25.759) / 302.529
=0.2575

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.

Nicholas Financial Inc has a M-score of -1.41 signals that the company is likely to 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.

Nicholas Financial Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 0.71011.37050.207344019.97851.01961.02280.81891.01371.07531.0175
GMI 0.99910.99931.00030.999610.99990.999910.99991
AQI 1.00041.00011.00140.03461.03821.15020.86550.89810.76230.8637
SGI 1.29991.09451.07221.06031.06351.11161.28261.01981.00631.0504
DEPI 0.82281.03980.89680.93230.96181.27350.93510.99121.03670.9054
SGAI 0.9882.96031.01671.0270.98970.99370.81631.06121.16150.9503
LVGI 1.01950.98560.96881.04460.97470.97490.89661.0920.95961.4092
TATA -0.00390.24320.22560.18240.21460.23870.3150.28960.27510.2575
M-score -2.52-1.25-2.0940,495.47-1.38-1.14-0.92-1.18-1.22-1.41

Nicholas Financial Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.56570.79720.85241.1181.17371.07531.07241.04821.04911.0175
GMI 0.99990.99990.99990.99990.99990.99990.99990.999911
AQI 1.02080.89810.73110.72380.71850.76230.83020.86870.84320.8637
SGI 1.82981.29681.22420.93850.90461.00631.01621.02251.03321.0504
DEPI 0.98090.99620.98740.96290.96071.03411.01321.02950.98990.9037
SGAI 0.56950.83270.89541.17641.25921.16141.14281.11781.0460.9503
LVGI 1.0811.0921.10731.12450.93680.95960.95850.94520.95041.4092
TATA 0.33860.28960.28880.28250.27690.27510.27020.26450.26350.2575
M-score -0.50-1.09-1.19-1.29-1.25-1.22-1.21-1.23-1.23-1.41
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK