Switch to:
Valley National Bancorp (NYSE:VLY)
Beneish M-Score
-2.35 (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.

Valley National Bancorp has a M-score of -2.35 suggests that the company is not a manipulator.

VLY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.5   Max: 0.98
Current: -2.35

-3.5
0.98

During the past 13 years, the highest Beneish M-Score of Valley National Bancorp was 0.98. The lowest was -3.50. And the median was -2.52.


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 Valley National Bancorp 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 * 0.8538+0.528 * 1+0.404 * 1.001+0.892 * 1.1489+0.115 * 0.9849
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9759+4.679 * -0.0022-0.327 * 0.5783
=-2.35

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $63.0 Mil.
Revenue was 169.601 + 172.084 + 154.879 + 156.377 = $652.9 Mil.
Gross Profit was 169.601 + 172.084 + 154.879 + 156.377 = $652.9 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $21,727.5 Mil.
Property, Plant and Equipment(Net PPE) was $300.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.0 Mil.
Selling, General & Admin. Expense(SGA) was $250.4 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $1,701.7 Mil.
Net Income was 36.187 + 4.671 + 35.954 + 31.991 = $108.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 54.733 + 8.947 + 46.37 + 45.741 = $155.8 Mil.
Accounts Receivable was $64.2 Mil.
Revenue was 150.731 + 158.209 + 129.449 + 129.953 = $568.3 Mil.
Gross Profit was 150.731 + 158.209 + 129.449 + 129.953 = $568.3 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $18,980.0 Mil.
Property, Plant and Equipment(Net PPE) was $281.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.5 Mil.
Selling, General & Admin. Expense(SGA) was $223.3 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $2,570.4 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)
=(62.973 / 652.941) / (64.198 / 568.342)
=0.09644516 / 0.11295664
=0.8538

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)
=(172.084 / 568.342) / (169.601 / 652.941)
=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 + 300.072) / 21727.523) / (1 - (0 + 281.236) / 18980.01)
=0.98618931 / 0.98518252
=1.001

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
=652.941 / 568.342
=1.1489

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))
=(29.532 / (29.532 + 281.236)) / (32.046 / (32.046 + 300.072))
=0.09502909 / 0.0964898
=0.9849

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)
=(250.396 / 652.941) / (223.345 / 568.342)
=0.38348947 / 0.39297641
=0.9759

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)
=((1701.739 + 0) / 21727.523) / ((2570.365 + 0) / 18980.01)
=0.07832181 / 0.13542485
=0.5783

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
=(108.803 - 0 - 155.791) / 21727.523
=-0.0022

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.

Valley National Bancorp has a M-score of -2.35 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.

Valley National Bancorp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.12741.02251.13180.76582.30030.77520.73740.94390.68980.9657
GMI 1111111111
AQI 0.99780.9991.00040.99870.99991.00021.00121.00071.00171.0012
SGI 0.9811.01030.90621.22991.06231.05961.04040.94360.95841.1479
DEPI 1.05931.28491.40841.0210.94370.92380.95830.98150.99751.0236
SGAI 1.07151.00151.19270.94810.97470.96111.07761.04031.0191.0135
LVGI 1.02251.25940.92751.01521.00780.92590.88320.9720.77870.6275
TATA -0.0054-0.065-0.05740.0008-0.0105-0.004-0.0112-0.0095-0.0036-0.0024
M-score -2.42-2.81-2.67-2.48-1.28-2.63-2.72-2.63-2.75-2.27

Valley National Bancorp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.94390.92630.85030.81320.68980.75240.840.82770.96570.8538
GMI 1111111111
AQI 1.00071.00071.00031.00051.00171.00181.00221.00151.00121.001
SGI 0.94360.94640.93020.96820.95840.99741.06791.12281.14791.1489
DEPI 0.98150.96970.97060.98350.99751.01011.02341.02921.02360.9849
SGAI 1.04381.02571.03661.00571.01861.0451.031.01831.00350.9759
LVGI 0.9720.96360.96190.90570.77870.78040.79530.77390.62750.5783
TATA -0.0095-0.0089-0.005-0.0034-0.0036-0.0047-0.0033-0.0019-0.0024-0.0022
M-score -2.63-2.63-2.70-2.67-2.75-2.67-2.52-2.46-2.27-2.35
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK