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Sandy Spring Bancorp Inc (NAS:SASR)
Beneish M-Score
-2.42 (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.

Sandy Spring Bancorp Inc has a M-score of -2.42 suggests that the company is not a manipulator.

SASR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.95   Max: -2.09
Current: -2.42

-4.95
-2.09

During the past 13 years, the highest Beneish M-Score of Sandy Spring Bancorp Inc was -2.09. The lowest was -4.95. And the median was -2.48.


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 Sandy Spring Bancorp 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 * 0.998+0.528 * 1+0.404 * 0.9998+0.892 * 1.0662+0.115 * 1.0483
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9948+4.679 * -0.0012-0.327 * 0.9856
=-2.42

* 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 $13.4 Mil.
Revenue was 48.02 + 47.506 + 46.042 + 46.532 = $188.1 Mil.
Gross Profit was 48.02 + 47.506 + 46.042 + 46.532 = $188.1 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,655.4 Mil.
Property, Plant and Equipment(Net PPE) was $53.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.3 Mil.
Selling, General & Admin. Expense(SGA) was $84.2 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $720.0 Mil.
Net Income was 12.802 + 10.995 + 10.333 + 11.225 = $45.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 6.527 + 23.989 + 10.019 + 10.295 = $50.8 Mil.
Accounts Receivable was $12.6 Mil.
Revenue was 44.565 + 45.01 + 44.003 + 42.841 = $176.4 Mil.
Gross Profit was 44.565 + 45.01 + 44.003 + 42.841 = $176.4 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,397.1 Mil.
Property, Plant and Equipment(Net PPE) was $49.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.2 Mil.
Selling, General & Admin. Expense(SGA) was $79.4 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $690.0 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)
=(13.443 / 188.1) / (12.634 / 176.419)
=0.0714673 / 0.0716136
=0.998

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)
=(47.506 / 176.419) / (48.02 / 188.1)
=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 + 53.214) / 4655.38) / (1 - (0 + 49.402) / 4397.132)
=0.98856935 / 0.98876495
=0.9998

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
=188.1 / 176.419
=1.0662

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))
=(7.157 / (7.157 + 49.402)) / (7.305 / (7.305 + 53.214))
=0.12654043 / 0.12070589
=1.0483

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)
=(84.173 / 188.1) / (79.355 / 176.419)
=0.4474907 / 0.44980983
=0.9948

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)
=((720 + 0) / 4655.38) / ((690 + 0) / 4397.132)
=0.15465977 / 0.15692047
=0.9856

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
=(45.355 - 0 - 50.83) / 4655.38
=-0.0012

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.

Sandy Spring Bancorp Inc has a M-score of -2.42 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.

Sandy Spring Bancorp Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.08230.88180.76121.20070.84861.05990.89380.95861.01390.998
GMI 1111111111
AQI 1.00021.00031.00261.00190.99971.00091.00091.0010.99990.9998
SGI 1.06851.11571.03750.96281.08490.96811.0751.0550.99431.0662
DEPI 0.83660.96350.93281.05291.21951.01340.95770.93941.17521.0483
SGAI 1.03030.96960.92591.25060.921.08030.90841.05461.10880.9502
LVGI 0.93331.22447.82310.91081.01810.94750.93761.42280.99130.9856
TATA -0.0039-0.0038-0.0079-0.0115-0.0094-0.0091-0.0041-0.0126-0.0035-0.0012
M-score -2.36-2.58-4.93-2.39-2.55-2.49-2.50-2.68-2.48-2.41

Sandy Spring Bancorp Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.95860.92760.92140.98911.01390.99741.04311.01640.9981.0298
GMI 1111111111
AQI 1.0011.00121.00081.00070.99990.99930.99920.99940.99981.0004
SGI 1.0551.02481.01890.99590.99431.02031.02691.051.06621.0608
DEPI 0.93940.96291.00641.05681.17521.24371.21361.15941.04831.2403
SGAI 1.03471.05841.10791.15881.00490.99250.98110.95270.99481.0004
LVGI 1.42281.29470.95681.01920.99130.98010.96081.00220.98560.9332
TATA -0.0126-0.016-0.0094-0.004-0.0035-0.0008-0.0017-0.0032-0.00120.0009
M-score -2.68-2.71-2.58-2.54-2.47-2.43-2.38-2.41-2.42-2.34
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