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Rockville Financial Inc (NAS:RCKB)
Beneish M-Score
-2.38 (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 -2.38 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: -2.38

-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 -2.41.


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 * 1.0848+0.528 * 1+0.404 * 1.0018+0.892 * 1.0378+0.115 * 1.6916
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.003+4.679 * 0.0016-0.327 * 1.3103
=-2.38

* 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 $16.64 Mil.
Revenue was 48.028 + 50.129 + 49.156 + 49.461 = $196.77 Mil.
Gross Profit was 48.028 + 50.129 + 49.156 + 49.461 = $196.77 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $6,415.08 Mil.
Property, Plant and Equipment(Net PPE) was $53.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.82 Mil.
Selling, General & Admin. Expense(SGA) was $86.26 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $1,222.16 Mil.
Net Income was 9.058 + 11.894 + 9.902 + 13.381 = $44.24 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -6.296 + -7.215 + 15.608 + 31.586 = $33.68 Mil.
Accounts Receivable was $14.78 Mil.
Revenue was 50.274 + 48.178 + 44.893 + 46.269 = $189.61 Mil.
Gross Profit was 50.274 + 48.178 + 44.893 + 46.269 = $189.61 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $5,680.69 Mil.
Property, Plant and Equipment(Net PPE) was $57.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.34 Mil.
Selling, General & Admin. Expense(SGA) was $82.87 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $825.96 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)
=(16.635 / 196.774) / (14.777 / 189.614)
=0.08453861 / 0.07793201
=1.0848

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)
=(189.614 / 189.614) / (196.774 / 196.774)
=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 + 53.021) / 6415.084) / (1 - (0 + 57.131) / 5680.69)
=0.99173495 / 0.98994295
=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
=196.774 / 189.614
=1.0378

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))
=(7.336 / (7.336 + 57.131)) / (3.824 / (3.824 + 53.021))
=0.11379465 / 0.06727065
=1.6916

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)
=(86.259 / 196.774) / (82.869 / 189.614)
=0.43836584 / 0.43704051
=1.003

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)
=((1222.16 + 0) / 6415.084) / ((825.963 + 0) / 5680.69)
=0.19051348 / 0.14539836
=1.3103

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
=(44.235 - 0 - 33.683) / 6415.084
=0.0016

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 -2.38 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 1.01780.99291.68340.73160.88960.98641.11261.03890.95250.8689
LVGI 1.1661.08131.34810.79720.92780.24171.90161.45781.35981.2432
TATA -0.0038-0.0034-0.0113-0.0004-0.0097-0.0053-0.0026-0.00430.003-0.0002
M-score -2.41-2.57-2.54-2.24-2.48-1.70-3.02-2.53-1.52-2.39

Rockville Financial Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.10721.37081.58611.35611.1460.59730.70670.86821.03761.0848
GMI 1111111111
AQI 0.99951.00010.99951.00021.00031.00011.00131.00181.0021.0018
SGI 0.98251.2241.49971.83672.20371.8021.48861.27571.09031.0378
DEPI 0.71491.16520.96390.79920.7360.65140.86921.20811.80461.6916
SGAI 1.10591.01441.00040.95250.84280.9170.8820.86890.92711.003
LVGI 1.23560.75191.26591.35981.23551.55171.36651.24321.32791.3103
TATA -0.00380.0045-0.00370.0030.00380.00220.0008-0.00020.00130.0016
M-score -2.54-1.82-1.60-1.52-1.33-2.33-2.42-2.39-2.36-2.38
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