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Renasant Corp (NAS:RNST)
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.

Renasant Corp has a M-score of -2.17 signals that the company is a manipulator.

RNST' s Beneish M-Score Range Over the Past 10 Years
Min: -2.66   Max: -2.01
Current: -2.17

-2.66
-2.01

During the past 13 years, the highest Beneish M-Score of Renasant Corp was -2.01. The lowest was -2.66. 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 Renasant 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 * 1+0.528 * 1+0.404 * 0.9982+0.892 * 1.2355+0.115 * 1.9562
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0093+4.679 * -0.0233-0.327 * 0.694
=-2.17

* 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 $0.0 Mil.
Revenue was 103.498 + 100.797 + 74.587 + 70.746 = $349.6 Mil.
Gross Profit was 103.498 + 100.797 + 74.587 + 70.746 = $349.6 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $7,926.5 Mil.
Property, Plant and Equipment(Net PPE) was $169.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.0 Mil.
Selling, General & Admin. Expense(SGA) was $172.5 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $148.2 Mil.
Net Income was 21.16 + 16.22 + 15.394 + 15.24 = $68.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 123.455 + 161.613 + 21.901 + -54.344 = $252.6 Mil.
Accounts Receivable was $0.0 Mil.
Revenue was 69.729 + 73.035 + 71.64 + 68.587 = $283.0 Mil.
Gross Profit was 69.729 + 73.035 + 71.64 + 68.587 = $283.0 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $5,805.1 Mil.
Property, Plant and Equipment(Net PPE) was $113.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.1 Mil.
Selling, General & Admin. Expense(SGA) was $138.4 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $156.4 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)
=(0 / 349.628) / (0 / 282.991)
=0 / 0
=1

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)
=(100.797 / 282.991) / (103.498 / 349.628)
=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 + 169.128) / 7926.496) / (1 - (0 + 113.735) / 5805.129)
=0.97866296 / 0.98040784
=0.9982

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
=349.628 / 282.991
=1.2355

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))
=(8.104 / (8.104 + 113.735)) / (5.953 / (5.953 + 169.128))
=0.06651401 / 0.03400141
=1.9562

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)
=(172.547 / 349.628) / (138.38 / 282.991)
=0.49351597 / 0.48899082
=1.0093

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)
=((148.217 + 0) / 7926.496) / ((156.422 + 0) / 5805.129)
=0.01869893 / 0.02694548
=0.694

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
=(68.014 - 0 - 252.625) / 7926.496
=-0.0233

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.

Renasant Corp 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.

Renasant Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1111111111
GMI 1111111111
AQI 1.00181.00271.00051.000710.9990.9970.99830.9980.9982
SGI 1.07761.13851.10460.96051.27990.98371.0221.13421.2361.2343
DEPI 1.23131.08310.97540.73221.08531.92760.78151.25921.23621.9562
SGAI 0.99320.96030.93841.18190.83951.15081.15841.05710.94541.0102
LVGI 0.98270.84822.37130.98130.42820.82620.65920.77340.9130.694
TATA -0.0031-0.0034-0.0104-0.0086-0.016-0.0303-0.0362-0.0208-0.0112-0.0233
M-score -2.39-2.31-2.88-2.61-2.08-2.50-2.57-2.36-2.26-2.17

Renasant Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1111111111
GMI 1111111111
AQI 0.99720.99830.99860.99860.99920.9980.99720.99730.99780.9982
SGI 1.08391.13351.21311.2981.33061.23591.15511.07991.11961.2355
DEPI 1.35060.73750.41030.18980.25890.41320.64596.27291.43951.9562
SGAI 1.07761.05441.02481.01280.96970.94840.94630.94040.98371.0093
LVGI 0.78380.77340.77580.78350.94760.9130.92550.93070.67080.694
TATA -0.024-0.0208-0.0157-0.0186-0.0111-0.01120.00190.0049-0.0128-0.0233
M-score -2.42-2.42-2.36-2.33-2.30-2.35-2.34-1.75-2.27-2.17
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