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Pacific Continental Corp (NAS:PCBK)
Beneish M-Score
-2.21 (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.

Pacific Continental Corp has a M-score of -2.21 signals that the company is a manipulator.

PCBK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03   Max: -1.22
Current: -2.21

-3.03
-1.22

During the past 13 years, the highest Beneish M-Score of Pacific Continental Corp was -1.22. The lowest was -3.03. And the median was -2.44.


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 Pacific Continental 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 * 0.8734+0.528 * 1+0.404 * 1.0005+0.892 * 1.2759+0.115 * 1.0186
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9576+4.679 * -0.0056-0.327 * 0.5069
=-2.21

* 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 $6.00 Mil.
Revenue was 20.616 + 20.83 + 20.022 + 19.323 = $80.79 Mil.
Gross Profit was 20.616 + 20.83 + 20.022 + 19.323 = $80.79 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,965.71 Mil.
Property, Plant and Equipment(Net PPE) was $18.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.04 Mil.
Selling, General & Admin. Expense(SGA) was $37.15 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $38.75 Mil.
Net Income was 5.459 + 5.529 + 5.325 + 5.095 = $21.41 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 5.242 + 9.578 + 7.212 + 10.335 = $32.37 Mil.
Accounts Receivable was $5.39 Mil.
Revenue was 16.248 + 15.693 + 15.769 + 15.613 = $63.32 Mil.
Gross Profit was 16.248 + 15.693 + 15.769 + 15.613 = $63.32 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,780.85 Mil.
Property, Plant and Equipment(Net PPE) was $17.93 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.85 Mil.
Selling, General & Admin. Expense(SGA) was $30.41 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $69.25 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)
=(6.003 / 80.791) / (5.387 / 63.323)
=0.07430283 / 0.08507177
=0.8734

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)
=(63.323 / 63.323) / (80.791 / 80.791)
=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 - (0 + 18.9) / 1965.705) / (1 - (0 + 17.932) / 1780.849)
=0.99038513 / 0.98993065
=1.0005

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
=80.791 / 63.323
=1.2759

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))
=(6.854 / (6.854 + 17.932)) / (7.043 / (7.043 + 18.9))
=0.27652707 / 0.27147978
=1.0186

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)
=(37.154 / 80.791) / (30.41 / 63.323)
=0.45987796 / 0.48023625
=0.9576

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)
=((38.748 + 0) / 1965.705) / ((69.248 + 0) / 1780.849)
=0.01971201 / 0.03888482
=0.5069

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
=(21.408 - 0 - 32.367) / 1965.705
=-0.0056

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.

Pacific Continental Corp has a M-score of -2.21 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.

Pacific Continental Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.9230.85761.03992.07090.47071.43440.72210.93731.00710.9793
GMI 1111111111
AQI 1.00050.99851.00351.00220.99961.00141.00191.0011.00121.0024
SGI 1.29531.06511.13071.09160.95661.02010.97861.11011.00771.2239
DEPI 0.77981.33950.97840.89320.41830.7330.67481.08791.13040.9768
SGAI 1.00521.0091.02110.98371.1661.02731.04071.16210.94471.0176
LVGI 1.40651.25030.93970.62030.53931.38951.06391.26260.59710.648
TATA 0.0018-0.0043-0.005-0.0203-0.0192-0.0185-0.0131-0.0093-0.0054-0.0059
M-score -2.44-2.62-2.34-1.39-3.04-2.31-2.88-2.59-2.34-2.22

Pacific Continental Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.83070.90880.98621.00711.13611.09781.15970.97930.87340.8685
GMI 1111111111
AQI 1.00071.00131.0011.00121.00261.00251.00271.00241.00051.0003
SGI 1.1111.10041.04721.00781.01041.06011.1371.22391.27591.2287
DEPI 1.15981.24051.20191.13041.08630.99410.96670.97681.01861.3203
SGAI 0.99881.02551.03741.01641.05081.02411.00450.97820.95760.9982
LVGI 0.96520.96890.97660.59710.31230.43710.64560.6480.50691.8995
TATA -0.0096-0.0075-0.007-0.0054-0.0047-0.0062-0.005-0.0059-0.0056-0.0015
M-score -2.55-2.48-2.46-2.35-2.14-2.19-2.12-2.21-2.21-2.66
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