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Rockville Financial Inc (NAS:RCKB)
Beneish M-Score
-2.39 (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 -2.39 suggests that the company is not a manipulator.

RCKB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.03   Max: -1.52
Current: -2.39

-3.03
-1.52

During the past 13 years, the highest Beneish M-Score of Rockville Financial Inc was -1.52. The lowest was -3.03. And the median was -2.45.


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 * 0.8682+0.528 * 1+0.404 * 1.0018+0.892 * 1.2757+0.115 * 1.2081
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8689+4.679 * -0.0002-0.327 * 1.2432
=-2.39

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $15.74 Mil.
Revenue was 49.156 + 49.461 + 50.274 + 48.178 = $197.07 Mil.
Gross Profit was 49.156 + 49.461 + 50.274 + 48.178 = $197.07 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $6,228.54 Mil.
Property, Plant and Equipment(Net PPE) was $54.78 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.50 Mil.
Selling, General & Admin. Expense(SGA) was $80.21 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $1,099.02 Mil.
Net Income was 9.902 + 13.381 + 13.332 + 13.025 = $49.64 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 15.608 + 31.064 + 0.416 + 3.682 = $50.77 Mil.
Accounts Receivable was $14.21 Mil.
Revenue was 44.893 + 46.269 + 43.198 + 20.117 = $154.48 Mil.
Gross Profit was 44.893 + 46.269 + 43.198 + 20.117 = $154.48 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $5,476.81 Mil.
Property, Plant and Equipment(Net PPE) was $57.67 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.14 Mil.
Selling, General & Admin. Expense(SGA) was $72.36 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $777.31 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)
=(15.74 / 197.069) / (14.212 / 154.477)
=0.0798705 / 0.09200075
=0.8682

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)
=(49.461 / 154.477) / (49.156 / 197.069)
=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 + 54.779) / 6228.541) / (1 - (0 + 57.665) / 5476.809)
=0.99120516 / 0.98947106
=1.0018

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
=197.069 / 154.477
=1.2757

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))
=(7.137 / (7.137 + 57.665)) / (5.495 / (5.495 + 54.779))
=0.11013549 / 0.091167
=1.2081

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)
=(80.21 / 197.069) / (72.36 / 154.477)
=0.4070148 / 0.46841925
=0.8689

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)
=((1099.02 + 0) / 6228.541) / ((777.314 + 0) / 5476.809)
=0.17644903 / 0.14192827
=1.2432

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
=(49.64 - 0 - 50.77) / 6228.541
=-0.0002

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 -2.39 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 1.04640.86971.45120.58360.82431.43490.6251.14021.35610.8682
GMI 1111111111
AQI 1.00050.99941.00011.00061.001210.99880.99931.00021.0018
SGI 1.13181.06840.76871.58451.18181.15771.12141.02931.83671.2757
DEPI 0.90471.12061.10360.91131.04851.12111.21840.73010.79921.2081
SGAI 1.01780.99291.68340.66870.97330.98641.11261.03890.95250.8689
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 -2.41-2.57-2.54-2.23-2.49-1.70-3.02-2.53-1.52-2.39

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 0.73010.71491.16520.96390.79920.7360.65130.86921.20811.6784
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 -0.0043-0.00380.0045-0.00370.0030.00360.00210.0008-0.00020.0002
M-score -2.53-2.54-1.82-1.60-1.52-1.34-2.33-2.42-2.39-2.38
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