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United Bancorp MI (OTCBB:UBMI)
Beneish M-Score
0.00 (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.

United Bancorp MI has a M-score of -2.66 suggests that the company is not a manipulator.

During the past 13 years, the highest Beneish M-Score of United Bancorp MI was 0.00. The lowest was 0.00. And the median was 0.00.


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 United Bancorp MI 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 * 0.8997+0.528 * 1+0.404 * 1.0005+0.892 * 0.9944+0.115 * 1.1915
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0562+4.679 * -0.0192-0.327 * 1.004
=-2.66

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $23.05 Mil.
Revenue was 12.564 + 13.117 + 13.096 + 13.471 = $52.25 Mil.
Gross Profit was 12.564 + 13.117 + 13.096 + 13.471 = $52.25 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $921.82 Mil.
Property, Plant and Equipment(Net PPE) was $9.97 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.60 Mil.
Selling, General & Admin. Expense(SGA) was $26.73 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $19.96 Mil.
Net Income was 2.004 + 2.506 + 2.276 + 2.087 = $8.87 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 6.666 + 8.753 + 2.786 + 8.342 = $26.55 Mil.
Accounts Receivable was $25.76 Mil.
Revenue was 13.212 + 13.275 + 13.21 + 12.844 = $52.54 Mil.
Gross Profit was 13.212 + 13.275 + 13.21 + 12.844 = $52.54 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $927.23 Mil.
Property, Plant and Equipment(Net PPE) was $10.46 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.31 Mil.
Selling, General & Admin. Expense(SGA) was $25.45 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $20.00 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)
=(23.046 / 52.248) / (25.759 / 52.541)
=0.44108865 / 0.49026475
=0.8997

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)
=(13.117 / 52.541) / (12.564 / 52.248)
=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 + 9.974) / 921.816) / (1 - (0 + 10.455) / 927.227)
=0.98918005 / 0.98872444
=1.0005

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
=52.248 / 52.541
=0.9944

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))
=(6.308 / (6.308 + 10.455)) / (4.604 / (4.604 + 9.974))
=0.37630496 / 0.31581836
=1.1915

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)
=(26.731 / 52.248) / (25.45 / 52.541)
=0.51161767 / 0.48438362
=1.0562

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)
=((19.961 + 0) / 921.816) / ((19.999 + 0) / 927.227)
=0.021654 / 0.02156861
=1.004

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
=(8.873 - 0 - 26.547) / 921.816
=-0.0192

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.

United Bancorp MI has a M-score of -2.66 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.

United Bancorp MI Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.00520.96441.01161.14781.14151.41271.0660.97450.92480.9033
GMI 1111111111
AQI 1.0041.0021.00061.00111.00071.00231.00051.00091.00041.0005
SGI 1.00461.10861.08931.04790.99631.11930.97870.99751.0931.024
DEPI 1.03591.2231.23181.07980.84690.76870.74810.74130.7461.0267
SGAI 0.98491.02450.93730.95161.25550.9810.96561.07051.00651.0792
LVGI 1.13560.8980.92161.02831.07210.77020.760.77180.89241.0079
TATA -0.0062-0.00340.0011-0.0104-0.0159-0.0223-0.0276-0.0224-0.015-0.0225
M-score -2.54-2.38-2.32-2.34-2.51-2.05-2.51-2.58-2.53-2.67

United Bancorp MI Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.04920.97790.94660.89010.93650.89930.94771.01290.90330.8997
GMI 1111111111
AQI 1.00121.00131.00031.00061.00041.00051.00061.00071.00051.0005
SGI 1.01191.01091.03421.04951.07941.0971.0761.04641.0240.9944
DEPI 0.67620.69970.67730.72760.73140.7450.89980.87751.02671.1915
SGAI 1.05671.06251.02791.01521.03791.03651.07931.10171.07921.0562
LVGI 0.76330.7470.81210.77120.89240.82060.49180.80821.00791.004
TATA -0.0337-0.0228-0.0149-0.0153-0.015-0.0203-0.02-0.0162-0.0225-0.0192
M-score -2.55-2.56-2.55-2.57-2.54-2.56-2.41-2.47-2.67-2.66
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