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Bank of the Ozarks Inc (NAS:OZRK)
Beneish M-Score
-2.00 (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.

Bank of the Ozarks Inc has a M-score of -2.00 signals that the company is a manipulator.

OZRK' s Beneish M-Score Range Over the Past 10 Years
Min: -283.32   Max: 6.01
Current: -2

-283.32
6.01

During the past 13 years, the highest Beneish M-Score of Bank of the Ozarks Inc was 6.01. The lowest was -283.32. 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 Bank of the Ozarks 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 * 1.041+0.528 * 1+0.404 * 1.008+0.892 * 1.2715+0.115 * 0.8131
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8545+4.679 * 0.001-0.327 * 0.4167
=-2.00

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $33.3 Mil.
Revenue was 132.382 + 137.058 + 118.525 + 117.026 = $505.0 Mil.
Gross Profit was 132.382 + 137.058 + 118.525 + 117.026 = $505.0 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $11,427.4 Mil.
Property, Plant and Equipment(Net PPE) was $299.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.6 Mil.
Selling, General & Admin. Expense(SGA) was $117.1 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $159.8 Mil.
Net Income was 51.688 + 51.455 + 46.128 + 44.776 = $194.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 45.315 + 124.025 + 32.223 + -18.581 = $183.0 Mil.
Accounts Receivable was $25.2 Mil.
Revenue was 114.556 + 106.562 + 93.869 + 82.189 = $397.2 Mil.
Gross Profit was 114.556 + 106.562 + 93.869 + 82.189 = $397.2 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $8,303.4 Mil.
Property, Plant and Equipment(Net PPE) was $282.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.0 Mil.
Selling, General & Admin. Expense(SGA) was $107.8 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $278.6 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)
=(33.327 / 504.991) / (25.179 / 397.176)
=0.06599524 / 0.06339507
=1.041

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)
=(137.058 / 397.176) / (132.382 / 504.991)
=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 + 299.85) / 11427.419) / (1 - (0 + 282.073) / 8303.407)
=0.97376048 / 0.96602925
=1.008

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
=504.991 / 397.176
=1.2715

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))
=(14.041 / (14.041 + 282.073)) / (18.569 / (18.569 + 299.85))
=0.04741755 / 0.05831624
=0.8131

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)
=(117.068 / 504.991) / (107.758 / 397.176)
=0.23182195 / 0.27131045
=0.8545

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)
=((159.756 + 0) / 11427.419) / ((278.582 + 0) / 8303.407)
=0.01398006 / 0.03355032
=0.4167

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
=(194.047 - 0 - 182.982) / 11427.419
=0.001

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.

Bank of the Ozarks Inc has a M-score of -2.00 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.

Bank of the Ozarks Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.17740.93590.92340.5459.88091.18610.68270.46580.17490.9212
GMI 1111111111
AQI 0.99530.99811.00080.99041.00451.00370.99231.00491.01141.0109
SGI 1.06971.07071.17351.43481.14511.47360.82991.11911.33871.3708
DEPI 1.26180.67411.10260.90270.95470.7690.96890.95820.86420.8139
SGAI 1.0950.95540.89850.70832.10590.49711.26420.98130.88591.0826
LVGI 0.62751.4431.02310.97070.72090.90050.89620.84360.52370.8627
TATA 0.0036-0.004-0.0036-0.00630.00720.02080.02290.00770.0085-0.0019
M-score -2.10-2.67-2.39-2.505.75-1.70-2.83-2.78-2.73-2.22

Bank of the Ozarks Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.45870.4290.46010.43930.17770.24380.2560.3450.92121.041
GMI 1111111111
AQI 1.00491.00731.01461.01191.01141.01761.00981.00931.01091.008
SGI 1.13641.1741.23331.24931.31841.40931.43261.41521.37081.2715
DEPI 0.95820.9961.04470.88810.86420.8120.78030.86360.81390.8131
SGAI 1.38871.40141.26591.29550.94940.8320.81210.77770.78220.8545
LVGI 0.84360.78550.48620.86430.52370.48830.5840.4720.86270.4167
TATA 0.00670.010.0090.00660.0032-0.00110.00340.0043-0.00190.001
M-score -2.84-2.80-2.59-2.76-2.78-2.63-2.62-2.49-2.17-2.00
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