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MSBI (Midland States Bancorp) Beneish M-Score : -2.94 (As of Mar. 02, 2025)


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What is Midland States Bancorp 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 -2.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MSBI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94   Med: -2.53   Max: 2.82
Current: -2.94

During the past 14 years, the highest Beneish M-Score of Midland States Bancorp was 2.82. The lowest was -2.94. And the median was -2.53.


Midland States Bancorp 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 Midland States 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 * 0.8774+0.528 * 1+0.404 * 0.9994+0.892 * 0.9511+0.115 * 0.9544
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0664+4.679 * -0.013642-0.327 * 1.6936
=-2.94

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $417.5 Mil.
Revenue was 74.289 + 72.708 + 77.107 + 77.488 = $301.6 Mil.
Gross Profit was 74.289 + 72.708 + 77.107 + 77.488 = $301.6 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $7,751.5 Mil.
Property, Plant and Equipment(Net PPE) was $84.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.3 Mil.
Selling, General, & Admin. Expense(SGA) was $101.3 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $507.7 Mil.
Net Income was 18.476 + 6.75 + 13.885 + 20.711 = $59.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 33.231 + 18.066 + 26.917 + 87.355 = $165.6 Mil.
Total Receivables was $500.3 Mil.
Revenue was 69.275 + 76.173 + 75.465 + 96.182 = $317.1 Mil.
Gross Profit was 69.275 + 76.173 + 75.465 + 96.182 = $317.1 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $7,975.9 Mil.
Property, Plant and Equipment(Net PPE) was $82.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.4 Mil.
Selling, General, & Admin. Expense(SGA) was $99.8 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $308.5 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)
=(417.531 / 301.592) / (500.307 / 317.095)
=1.384423 / 1.577783
=0.8774

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)
=(317.095 / 317.095) / (301.592 / 301.592)
=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 + 84.672) / 7751.483) / (1 - (0 + 82.741) / 7975.925)
=0.989077 / 0.989626
=0.9994

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
=301.592 / 317.095
=0.9511

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))
=(12.357 / (12.357 + 82.741)) / (13.345 / (13.345 + 84.672))
=0.12994 / 0.13615
=0.9544

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)
=(101.264 / 301.592) / (99.837 / 317.095)
=0.335765 / 0.314849
=1.0664

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)
=((507.744 + 0) / 7751.483) / ((308.475 + 0) / 7975.925)
=0.065503 / 0.038676
=1.6936

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
=(59.822 - 0 - 165.569) / 7751.483
=-0.013642

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.

Midland States Bancorp has a M-score of -2.94 suggests that the company is unlikely to be a manipulator.


Midland States Bancorp Beneish M-Score Related Terms

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Midland States Bancorp Business Description

Traded in Other Exchanges
Address
1201 Network Centre Drive, Effingham, IL, USA, 62401
Midland States Bancorp Inc is a diversified financial holding company. The company provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust and investment management, and insurance and financial planning services. The Banking segment which generates the majority of the revenue, provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products; commercial equipment financing etc. The Wealth Management segment consists of trust and fiduciary services, brokerage and retirement planning services. The Other segment includes the operating results of the parent company.
Executives
Jeffrey C. Smith director MIDLAND STATES BANCORP, INC., 133 WEST JEFFERSON AVENUE, EFFINGHAM IL 62401
Donald J. Spring officer: Chief Accounting Officer 1201 NETWORK CENTRE DRIVE, EFFINGHAM IL 62401
Robert F. Schultz director MIDLAND STATES BANCORP, INC., 133 WEST JEFFERSON AVENUE, EFFINGHAM IL 62401
Jeffrey G. Ludwig officer: EVP & CFO MIDLAND STATES BANCORP, INC., 133 WEST JEFFERSON AVENUE, EFFINGHAM IL 62401
Jeffrey M Mcdonnell director 1201 NETWORK CENTRE DRIVE, EFFINGHAM IL 62401
Douglas J. Tucker officer: SVP Corporate Counsel MIDLAND STATES BANCORP, INC., 133 WEST JEFFERSON AVENUE, EFFINGHAM IL 62401
Richard Dean Bingham director 1201 NETWORK CENTRE DRIVE, EFFINGHAM IL 62401
Jeffrey S. Mefford officer: EVP-Banking, Midland States Bank MIDLAND STATES BANCORP, INC., 133 WEST JEFFERSON AVENUE, EFFINGHAM IL 62401
Eric Lemke officer: Chief Financial Officer 1201 NETWORK CENTRE DRIVE, EFFINGHAM IL 62401
Jerry L. Mcdaniel director 1201 NETWORK CENTRE DRIVE, EFFINGHAM IL 62401
Sherina M. Edwards director 1201 NETWORK CENTRE DRIVE, EFFINGHAM IL 62401
Jeffrey A. Brunoehler officer: SVP Credit - CCO, Midland States Bank MIDLAND STATES BANCORP, INC., 133 WEST JEFFERSON AVENUE, EFFINGHAM IL 62401
John M Schultz director MIDLAND STATES BANCORP, INC., 133 WEST JEFFERSON AVENUE, EFFINGHAM IL 62401
Leon J Holschbach director, officer: CEO C/O MIDLAND STATES BANCORP, INC., 133 WEST JEFFERSON AVENUE, EFFINGHAM IL 62401
Stephen A. Erickson officer: Chief Financial Officer 1201 NETWORK CENTRE DRIVE, EFFINGHAM IL 62401