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Bank of the Ozarks Inc (NAS:OZRK)
Beneish M-Score
-2.17 (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 -2.17 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: -2.17

-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 * 1.0914+0.528 * 1+0.404 * 1.0081+0.892 * 1.2262+0.115 * 0.8449
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8715+4.679 * 0.0015-0.327 * 0.9709
=-2.17

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $35.3 Mil.
Revenue was 141.771 + 132.382 + 137.058 + 118.525 = $529.7 Mil.
Gross Profit was 141.771 + 132.382 + 137.058 + 118.525 = $529.7 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $12,279.6 Mil.
Property, Plant and Equipment(Net PPE) was $305.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.3 Mil.
Selling, General & Admin. Expense(SGA) was $112.8 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $382.3 Mil.
Net Income was 54.474 + 51.688 + 51.455 + 46.128 = $203.7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 22.937 + 45.315 + 124.025 + -7.111 = $185.2 Mil.
Accounts Receivable was $26.3 Mil.
Revenue was 117.026 + 114.556 + 106.562 + 93.869 = $432.0 Mil.
Gross Profit was 117.026 + 114.556 + 106.562 + 93.869 = $432.0 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $8,710.4 Mil.
Property, Plant and Equipment(Net PPE) was $285.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.0 Mil.
Selling, General & Admin. Expense(SGA) was $105.5 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $279.3 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)
=(35.256 / 529.736) / (26.345 / 432.013)
=0.06655391 / 0.06098196
=1.0914

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)
=(432.013 / 432.013) / (529.736 / 529.736)
=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 + 305.475) / 12279.579) / (1 - (0 + 285.087) / 8710.435)
=0.97512333 / 0.96727064
=1.0081

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
=529.736 / 432.013
=1.2262

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))
=(15.045 / (15.045 + 285.087)) / (19.267 / (19.267 + 305.475))
=0.05012794 / 0.05933018
=0.8449

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)
=(112.766 / 529.736) / (105.523 / 432.013)
=0.21287207 / 0.24425885
=0.8715

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)
=((382.339 + 0) / 12279.579) / ((279.334 + 0) / 8710.435)
=0.03113617 / 0.03206889
=0.9709

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
=(203.745 - 0 - 185.166) / 12279.579
=0.0015

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 -2.17 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 1.17740.93590.92340.5459.88091.18610.68270.45870.17770.9212
GMI 1111111111
AQI 0.99530.99811.00080.99041.00451.00370.99231.00491.01141.0109
SGI 1.06971.07071.17351.43481.14511.47360.82991.13641.31841.3708
DEPI 1.26180.67411.10260.90270.95470.7690.96890.95820.86420.8139
SGAI 1.0950.95540.8641.36220.59550.95071.26421.2670.90620.8197
LVGI 0.62751.4431.02310.97070.72090.90050.89620.84360.52370.8627
TATA 0.0036-0.004-0.0037-0.00180.00710.0210.0230.00670.0032-0.0019
M-score -2.10-2.67-2.39-2.596.01-1.77-2.83-2.82-2.78-2.17

Bank of the Ozarks Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.4290.46010.43930.17770.24380.2560.3450.92121.0411.0914
GMI 1111111111
AQI 1.00731.01461.01191.01141.01761.00981.00931.01091.0081.0081
SGI 1.1741.23331.24931.31841.40931.43261.41521.37081.27151.2262
DEPI 0.9961.04470.88810.86420.8120.78030.86360.81390.81310.8449
SGAI 1.40141.26591.29550.94940.8320.76440.73220.73710.80640.8715
LVGI 0.78550.48620.86430.52370.48830.5840.4720.86270.41670.9709
TATA 0.010.0090.00660.0032-0.0011-0.00110.0043-0.00190.0010.0015
M-score -2.80-2.59-2.76-2.78-2.63-2.63-2.49-2.16-1.99-2.17
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