ICC Holdings (ICC Holdings) Beneish M-Score : -2.49 (As of May. 03, 2024)

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What is ICC Holdings Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for ICC Holdings's Beneish M-Score or its related term are showing as below:

ICCH' s Beneish M-Score Range Over the Past 10 Years
Min: -2.63 Med: -2.49 Max: -2.16
Current: -2.49

During the past 10 years, the highest Beneish M-Score of ICC Holdings was -2.16. The lowest was -2.63. And the median was -2.49.

ICC Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 ICC Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.937

0.528 * 1

0.404 * 0.8676

0.892 * 1.1903

0.115 * 0.9266

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8487

4.679 * -0.021325

0.327 * 0.9551

-2.49

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $50.09 Mil.
Revenue was 22.907 + 19.764 + 20.651 + 19.62 = $82.94 Mil.
Gross Profit was 22.907 + 19.764 + 20.651 + 19.62 = $82.94 Mil.
Total Current Assets was $162.52 Mil.
Total Assets was $211.02 Mil.
Property, Plant and Equipment(Net PPE) was $3.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.76 Mil.
Selling, General, & Admin. Expense(SGA) was $0.79 Mil.
Total Current Liabilities was $8.58 Mil.
Long-Term Debt & Capital Lease Obligation was $15.00 Mil.
Net Income was 2.861 + -0.769 + 0.586 + 1.579 = $4.26 Mil.
Non Operating Income was 0.076 + 0.051 + 0.064 + 0.046 = $0.24 Mil.
Cash Flow from Operations was -2.102 + 2.825 + 5.456 + 2.341 = $8.52 Mil.

Total Receivables was $44.90 Mil.
Revenue was 21.08 + 17.794 + 14.797 + 16.008 = $69.68 Mil.
Gross Profit was 21.08 + 17.794 + 14.797 + 16.008 = $69.68 Mil.
Total Current Assets was $141.43 Mil.
Total Assets was $192.16 Mil.
Property, Plant and Equipment(Net PPE) was $3.31 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.69 Mil.
Selling, General, & Admin. Expense(SGA) was $0.78 Mil.
Total Current Liabilities was $7.48 Mil.
Long-Term Debt & Capital Lease Obligation was $15.00 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(50.085 / 82.942)	/	(44.903 / 69.679)
	=	0.603856	/	0.644427
	=	0.937

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)
	=	(69.679 / 69.679)	/	(82.942 / 82.942)
	=	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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (162.519 + 3.325) / 211.017)	/	(1 - (141.432 + 3.314) / 192.162)
	=	0.214073	/	0.24675
	=	0.8676

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	82.942	/	69.679
	=	1.1903

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(0.693 / (0.693 + 3.314))	/	(0.763 / (0.763 + 3.325))
	=	0.172947	/	0.186644
	=	0.9266

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(0.785 / 82.942)	/	(0.777 / 69.679)
	=	0.009464	/	0.011151
	=	0.8487

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((15 + 8.575) / 211.017)	/	((15 + 7.477) / 192.162)
	=	0.111721	/	0.116969
	=	0.9551

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
	=	(4.257 - 0.237	-	8.52)	/	211.017
	=	-0.021325

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

ICC Holdings has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.

ICC Holdings Beneish M-Score Related Terms

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ICC Holdings (ICC Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » ICC Holdings Inc (NAS:ICCH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

225 20th Street, Rock Island, IL, USA, 61201

Website

https://ir.iccholdingsinc.com

ICC Holdings Inc is a specialty insurance carrier primarily underwriting commercial multi-peril, liquor liability, worker's compensation, and umbrella liability coverages for the food and beverage industry. The company markets its products through a network of independent agents in Colorado, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Pennsylvania, Ohio, and Wisconsin.

Executives

Arron K. Sutherland	officer: President and CEO	225 20TH STREET, ROCK ISLAND IL 61201
Michael R. Smith	officer: Chief Financial Officer	225 20TH STREET, ROCK ISLAND IL 61201
Rock Island Investors, Llc	10 percent owner	1230 PEACHTREE STREET NE, SUITE 3500, ATLANTA GA 30309
John R. Klockau	director, Board of Directors	225 20TH STREET, ROCK ISLAND IL 61201
Norman D. Schmeichel	officer: VP Chief Information Officer	225 20TH STREET, ROCK ISLAND IL 61201
Employee Stock Ownership Trust Icc Holdings, Inc.	10 percent owner	225 20TH STREET, ROCK ISLAND IL 61201
Julia B. Suiter	officer: Chief Legal Officer	225 20TH STREET, ROCK ISLAND IL 61201
Howard J. Beck	officer: Chief Underwriting Officer	225 20TH STREET, ROCK ISLAND IL 61201
Rickey Plunkett	officer: Director of Claims	225 20TH STREET, ROCK ISLAND IL 61201
Richard Kevin Clinton	director	225 20TH STREET, ROCK ISLAND IL 61201
Marilyn J. Clinton	10 percent owner	225 20TH STREET, ROCK ISLAND IL 61201
Joel K Heriford	director, Board of Directors	702 E. OSBORN RD., SUITE 200, PHOENIX AZ 85014
James R. Dingman	director, Board of Directors	225 20TH STREET, ROCK ISLAND IL 61201
Gerald J. Pepping	director, Board of Directors	225 20TH STREET, ROCK ISLAND IL 61201
Mark J. Schwab	director, Board of Directors	225 20TH STREET, ROCK ISLAND IL 61201