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Sandy Spring Bancorp Inc (NAS:SASR)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

SASR' s Beneish M-Score Range Over the Past 10 Years
Min: -6.12   Max: -2.06
Current: -2.45

-6.12
-2.06

During the past 13 years, the highest Beneish M-Score of Sandy Spring Bancorp Inc was -2.06. The lowest was -6.12. And the median was -2.50.


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 * 0.9547+0.528 * 1+0.404 * 1.0003+0.892 * 1.0678+0.115 * 0.9412
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9756+4.679 * -0.0061-0.327 * 0.886
=-2.45

* 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 $13.4 Mil.
Revenue was 49.483 + 49.485 + 48.02 + 47.506 = $194.5 Mil.
Gross Profit was 49.483 + 49.485 + 48.02 + 47.506 = $194.5 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,739.4 Mil.
Property, Plant and Equipment(Net PPE) was $53.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.7 Mil.
Selling, General & Admin. Expense(SGA) was $85.0 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $545.0 Mil.
Net Income was 10.647 + 10.813 + 12.802 + 10.995 = $45.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 27.726 + 15.836 + 6.527 + 23.989 = $74.1 Mil.
Accounts Receivable was $13.1 Mil.
Revenue was 46.042 + 46.532 + 44.565 + 45.01 = $182.1 Mil.
Gross Profit was 46.042 + 46.532 + 44.565 + 45.01 = $182.1 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,507.4 Mil.
Property, Plant and Equipment(Net PPE) was $51.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.0 Mil.
Selling, General & Admin. Expense(SGA) was $81.6 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $585.0 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)
=(13.399 / 194.494) / (13.144 / 182.149)
=0.06889159 / 0.0721607
=0.9547

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)
=(182.149 / 182.149) / (194.494 / 194.494)
=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 + 53.055) / 4739.449) / (1 - (0 + 51.609) / 4507.367)
=0.98880566 / 0.98855008
=1.0003

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
=194.494 / 182.149
=1.0678

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))
=(6.988 / (6.988 + 51.609)) / (7.698 / (7.698 + 53.055))
=0.11925525 / 0.12670979
=0.9412

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)
=(85.017 / 194.494) / (81.611 / 182.149)
=0.43711888 / 0.44804528
=0.9756

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)
=((545 + 0) / 4739.449) / ((585 + 0) / 4507.367)
=0.11499227 / 0.12978752
=0.886

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
=(45.257 - 0 - 74.078) / 4739.449
=-0.0061

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 -2.45 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 1.08230.88180.76121.20030.86061.04540.89380.95861.01390.998
GMI 1111111111
AQI 1.00021.00031.00261.00190.99971.00091.00091.0010.99990.9998
SGI 1.06851.11571.03750.96311.06980.98151.0751.0550.99431.0662
DEPI 0.83660.96350.93281.05291.21951.01340.95770.93941.17521.0483
SGAI 1.03030.96961.02861.12530.93311.06550.97581.01971.01970.9948
LVGI 0.93331.22447.82310.91081.01810.94750.93761.42280.99130.9856
TATA -0.004-0.0047-0.0103-0.0115-0.0094-0.0091-0.0041-0.0126-0.0035-0.0012
M-score -2.36-2.58-4.96-2.37-2.56-2.49-2.51-2.68-2.47-2.42

Sandy Spring Bancorp Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.92760.92140.98911.01390.99741.04311.01640.9981.02980.9547
GMI 1111111111
AQI 1.00121.00081.00070.99990.99930.99920.99940.99981.00041.0003
SGI 1.02481.01890.99590.99431.02031.02691.051.06621.06081.0678
DEPI 0.96291.00641.05681.17521.24371.21361.15941.04830.96130.9412
SGAI 1.05841.10791.15881.00490.99250.98110.95270.99481.00040.9756
LVGI 1.29470.95681.01920.99130.98010.96081.00220.98560.93320.886
TATA -0.016-0.0094-0.004-0.0035-0.0008-0.0017-0.0032-0.0012-0.0024-0.0061
M-score -2.71-2.58-2.54-2.47-2.43-2.38-2.41-2.42-2.39-2.45
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