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Valley National Bancorp (NYSE:VLY)
Beneish M-Score
-2.34 (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 -2.34 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: -2.34

-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 * 0.8649+0.528 * 1+0.404 * 1.0008+0.892 * 1.1303+0.115 * 0.9385
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9623+4.679 * -0.0018-0.327 * 0.5264
=-2.34

* 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 $65.2 Mil.
Revenue was 175.719 + 169.601 + 172.084 + 154.879 = $672.3 Mil.
Gross Profit was 175.719 + 169.601 + 172.084 + 154.879 = $672.3 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $21,809.7 Mil.
Property, Plant and Equipment(Net PPE) was $301.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.7 Mil.
Selling, General & Admin. Expense(SGA) was $251.6 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $1,587.0 Mil.
Net Income was 39.027 + 36.187 + 4.671 + 35.954 = $115.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 44.335 + 54.733 + 8.947 + 46.37 = $154.4 Mil.
Accounts Receivable was $66.7 Mil.
Revenue was 156.377 + 150.731 + 158.209 + 129.449 = $594.8 Mil.
Gross Profit was 156.377 + 150.731 + 158.209 + 129.449 = $594.8 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $19,290.0 Mil.
Property, Plant and Equipment(Net PPE) was $282.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.4 Mil.
Selling, General & Admin. Expense(SGA) was $231.3 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $2,666.4 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)
=(65.193 / 672.283) / (66.682 / 594.766)
=0.09697255 / 0.11211468
=0.8649

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)
=(594.766 / 594.766) / (672.283 / 672.283)
=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 + 301.852) / 21809.738) / (1 - (0 + 282.031) / 19290.005)
=0.98615976 / 0.98537942
=1.0008

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
=672.283 / 594.766
=1.1303

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))
=(29.39 / (29.39 + 282.031)) / (33.749 / (33.749 + 301.852))
=0.09437385 / 0.10056287
=0.9385

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)
=(251.595 / 672.283) / (231.313 / 594.766)
=0.37423972 / 0.3889143
=0.9623

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)
=((1586.991 + 0) / 21809.738) / ((2666.449 + 0) / 19290.005)
=0.07276525 / 0.13822957
=0.5264

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
=(115.839 - 0 - 154.385) / 21809.738
=-0.0018

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 -2.34 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 6.4210.17851.13840.76582.30030.77520.73740.94390.68980.9657
GMI 1111111111
AQI 0.99780.9991.00040.99870.99991.00021.00121.00071.00171.0012
SGI 0.17235.78740.90091.22991.06231.05961.04040.94360.95841.1479
DEPI 2.07240.79851.15671.02250.94370.92380.95830.98150.99751.0236
SGAI 6.10230.17481.21460.93650.97470.96111.07761.04381.02681.0025
LVGI 1.02251.25940.92751.01521.00780.92590.88320.9720.77870.6275
TATA -0.0054-0.0649-0.05720.0008-0.0105-0.0041-0.0112-0.0095-0.0036-0.0024
M-score 0.980.76-2.70-2.48-1.28-2.63-2.72-2.63-2.75-2.27

Valley National Bancorp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.92630.85030.81320.68980.75240.840.82770.96570.85380.8649
GMI 1111111111
AQI 1.00071.00031.00051.00171.00181.00221.00151.00121.0011.0008
SGI 0.94640.93020.96820.95840.99741.06791.12281.14791.14891.1303
DEPI 0.96970.97060.98350.99751.01011.02341.02921.02360.98490.9385
SGAI 1.02571.03661.00571.01861.0451.02281.01140.99680.96950.9623
LVGI 0.96360.96190.90570.77870.78040.79530.77390.62750.57830.5264
TATA -0.0089-0.005-0.0034-0.0036-0.0047-0.0033-0.0019-0.0024-0.0022-0.0018
M-score -2.63-2.70-2.67-2.75-2.67-2.52-2.46-2.27-2.35-2.34
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