Integrated Financial Holdings (Integrated Financial Holdings) Beneish M-Score : -2.07 (As of May. 27, 2024)

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What is Integrated Financial 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 -2.07 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

IFHI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.31 Med: -1.79 Max: 29
Current: -2.07

During the past 8 years, the highest Beneish M-Score of Integrated Financial Holdings was 29.00. The lowest was -2.31. And the median was -1.79.

Integrated Financial 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 Integrated Financial 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 * 1.3465

0.528 * 1

0.404 * 1.0015

0.892 * 0.9361

0.115 * 0.9422

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8126

4.679 * 0.019391

0.327 * 0.9016

-2.07

* 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 (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $3.90 Mil.
Revenue was 8.885 + 10.645 + 10.004 + 12.945 = $42.48 Mil.
Gross Profit was 8.885 + 10.645 + 10.004 + 12.945 = $42.48 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $518.24 Mil.
Property, Plant and Equipment(Net PPE) was $3.71 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.66 Mil.
Selling, General, & Admin. Expense(SGA) was $20.73 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $10.00 Mil.
Net Income was 1.271 + 2.783 + 2.4 + 3.595 = $10.05 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0.00 Mil.

Total Receivables was $3.09 Mil.
Revenue was 11.957 + 11.925 + 10.065 + 11.43 = $45.38 Mil.
Gross Profit was 11.957 + 11.925 + 10.065 + 11.43 = $45.38 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $467.26 Mil.
Property, Plant and Equipment(Net PPE) was $4.04 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.68 Mil.
Selling, General, & Admin. Expense(SGA) was $27.25 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $10.00 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)
	=	(3.895 / 42.479)	/	(3.09 / 45.377)
	=	0.091692	/	0.068096
	=	1.3465

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)
	=	(45.377 / 45.377)	/	(42.479 / 42.479)
	=	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 - (0 + 3.707) / 518.237)	/	(1 - (0 + 4.041) / 467.259)
	=	0.992847	/	0.991352
	=	1.0015

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
	=	42.479	/	45.377
	=	0.9361

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))
	=	(0.675 / (0.675 + 4.041))	/	(0.664 / (0.664 + 3.707))
	=	0.14313	/	0.15191
	=	0.9422

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)
	=	(20.73 / 42.479)	/	(27.252 / 45.377)
	=	0.488006	/	0.600569
	=	0.8126

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)
	=	((10 + 0) / 518.237)	/	((10 + 0) / 467.259)
	=	0.019296	/	0.021401
	=	0.9016

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
	=	(10.049 - 0	-	0)	/	518.237
	=	0.019391

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.

Integrated Financial Holdings has a M-score of -2.07 suggests that the company is unlikely to be a manipulator.

Integrated Financial Holdings Beneish M-Score Related Terms

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Integrated Financial Holdings (Integrated Financial Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Integrated Financial Holdings Inc (OTCPK:IFHI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

8450 Falls Of Neuse Road, Suite 202, Raleigh, NC, USA, 27615

Website

https://www.ifhinc.com

Integrated Financial Holdings Inc is a North Carolina-based financial services holding company, specializing in small business lending solutions and targeted bank deposit products to underserved verticals with a focus on technology and collaborative, opportunistic investments. The Company's loan portfolio includes segment- Commercial, Real estate and Consumer.