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Rockville Financial Inc (NAS:RCKB)
Beneish M-Score
-2.36 (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.

Rockville Financial Inc has a M-score of -2.36 suggests that the company is not a manipulator.

RCKB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03   Max: -0.98
Current: -2.36

-3.03
-0.98

During the past 13 years, the highest Beneish M-Score of Rockville Financial Inc was -0.98. The lowest was -3.03. And the median was -2.42.


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 Rockville 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 * 1.0376+0.528 * 1+0.404 * 1.002+0.892 * 1.0903+0.115 * 1.8046
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9271+4.679 * 0.0013-0.327 * 1.3279
=-2.36

* 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 $16.92 Mil.
Revenue was 50.129 + 49.156 + 49.461 + 50.274 = $199.02 Mil.
Gross Profit was 50.129 + 49.156 + 49.461 + 50.274 = $199.02 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $6,319.24 Mil.
Property, Plant and Equipment(Net PPE) was $53.69 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.97 Mil.
Selling, General & Admin. Expense(SGA) was $81.46 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $1,073.03 Mil.
Net Income was 11.894 + 9.902 + 13.381 + 13.332 = $48.51 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -7.215 + 15.608 + 31.064 + 1.029 = $40.49 Mil.
Accounts Receivable was $14.96 Mil.
Revenue was 48.178 + 44.893 + 46.269 + 43.198 = $182.54 Mil.
Gross Profit was 48.178 + 44.893 + 46.269 + 43.198 = $182.54 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $5,531.15 Mil.
Property, Plant and Equipment(Net PPE) was $57.72 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.18 Mil.
Selling, General & Admin. Expense(SGA) was $80.59 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $707.32 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)
=(16.922 / 199.02) / (14.958 / 182.538)
=0.08502663 / 0.08194458
=1.0376

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)
=(182.538 / 182.538) / (199.02 / 199.02)
=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 + 53.685) / 6319.244) / (1 - (0 + 57.718) / 5531.15)
=0.99150452 / 0.98956492
=1.002

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
=199.02 / 182.538
=1.0903

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))
=(8.183 / (8.183 + 57.718)) / (3.967 / (3.967 + 53.685))
=0.12417111 / 0.06880941
=1.8046

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)
=(81.455 / 199.02) / (80.586 / 182.538)
=0.40928047 / 0.4414752
=0.9271

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)
=((1073.034 + 0) / 6319.244) / ((707.318 + 0) / 5531.15)
=0.16980417 / 0.12787901
=1.3279

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
=(48.509 - 0 - 40.486) / 6319.244
=0.0013

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.

Rockville Financial Inc has a M-score of -2.36 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.

Rockville Financial Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04640.86971.00590.8420.82431.43490.6251.14021.35610.8682
GMI 1111111111
AQI 1.00050.99941.00011.00061.001210.99880.99931.00021.0018
SGI 1.13181.06841.1091.09831.18181.15771.12141.02931.83671.2757
DEPI 0.90471.12061.14490.87841.04851.12111.21840.73010.79921.2081
SGAI 1.01780.99290.96731.16370.97330.98641.11261.03890.95250.8689
LVGI 1.1661.08131.34810.79720.92780.24171.90161.45781.35981.2432
TATA -0.0038-0.0034-0.0113-0.0004-0.0097-0.0053-0.0026-0.00410.003-0.0002
M-score -2.41-2.57-2.52-2.52-2.49-1.70-3.02-2.53-1.52-2.39

Rockville Financial Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.14021.10721.37081.58611.35611.1460.59730.70670.86821.0376
GMI 1111111111
AQI 0.99930.99951.00010.99951.00021.00031.00011.00131.00181.002
SGI 1.02930.98251.2241.49971.83672.20371.8021.48861.27571.0903
DEPI 0.73010.71491.16520.96390.79920.7360.65130.86921.20811.8046
SGAI 1.03891.10591.01441.00040.95250.84280.9170.8820.86890.9271
LVGI 1.45781.23560.75191.26591.35981.23551.55171.36651.24321.3279
TATA -0.0043-0.00380.0045-0.00370.0030.00380.00210.0008-0.00020.0013
M-score -2.53-2.54-1.82-1.60-1.52-1.33-2.33-2.42-2.39-2.36
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