NewtekOne (NewtekOne) Beneish M-Score : -1.33 (As of Apr. 24, 2024)

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What is NewtekOne 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.

Warning Sign:

Beneish M-Score -1.33 higher than -1.78, which implies that the company might have manipulated its financial results.

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

NEWT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.3 Med: -1.8 Max: 18.77
Current: -1.33

During the past 13 years, the highest Beneish M-Score of NewtekOne was 18.77. The lowest was -3.30. And the median was -1.80.

NewtekOne 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 NewtekOne 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

0.528 * 1

0.404 * 0.8756

0.892 * 1.7598

0.115 * 0.1058

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.7969

4.679 * 0.151484

0.327 * 0.829

-1.33

* 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 $62.2 Mil.
Revenue was 48.792 + 46.16 + 47.263 + 42.866 = $185.1 Mil.
Gross Profit was 48.792 + 46.16 + 47.263 + 42.866 = $185.1 Mil.
Total Current Assets was $247.5 Mil.
Total Assets was $1,429.5 Mil.
Property, Plant and Equipment(Net PPE) was $5.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.9 Mil.
Selling, General, & Admin. Expense(SGA) was $88.1 Mil.
Total Current Liabilities was $104.3 Mil.
Long-Term Debt & Capital Lease Obligation was $612.7 Mil.
Net Income was 18.784 + 9.975 + 6.853 + 11.718 = $47.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -52.529 + 88.162 + -88.493 + -116.359 = $-169.2 Mil.

Total Receivables was $0.0 Mil.
Revenue was 23.643 + 27.938 + 28.285 + 25.304 = $105.2 Mil.
Gross Profit was 23.643 + 27.938 + 28.285 + 25.304 = $105.2 Mil.
Total Current Assets was $53.7 Mil.
Total Assets was $998.9 Mil.
Property, Plant and Equipment(Net PPE) was $6.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.2 Mil.
Selling, General, & Admin. Expense(SGA) was $27.9 Mil.
Total Current Liabilities was $150.8 Mil.
Long-Term Debt & Capital Lease Obligation was $453.5 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)
	=	(62.23 / 185.081)	/	(0 / 105.17)
	=	0.336231	/	0
	=	1

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)
	=	(105.17 / 105.17)	/	(185.081 / 185.081)
	=	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 - (247.488 + 5.701) / 1429.513)	/	(1 - (53.692 + 6.484) / 998.902)
	=	0.822884	/	0.939758
	=	0.8756

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
	=	185.081	/	105.17
	=	1.7598

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))
	=	(0.239 / (0.239 + 6.484))	/	(2.884 / (2.884 + 5.701))
	=	0.03555	/	0.335935
	=	0.1058

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)
	=	(88.096 / 185.081)	/	(27.859 / 105.17)
	=	0.475986	/	0.264895
	=	1.7969

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)
	=	((612.693 + 104.269) / 1429.513)	/	((453.511 + 150.839) / 998.902)
	=	0.501543	/	0.605014
	=	0.829

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
	=	(47.33 - 0	-	-169.219)	/	1429.513
	=	0.151484

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.

NewtekOne has a M-score of -1.33 signals that the company is likely to be a manipulator.

NewtekOne Beneish M-Score Related Terms

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NewtekOne (NewtekOne) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » NewtekOne Inc (NAS:NEWT) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

1N31:Germany

Address

4800 T Rex Avenue, Suite 120, Boca Raton, FL, USA, 33431

Website

https://www.newtekone.com

NewtekOne Inc is a financial holding company engaged in providing financial solutions, It has developed a financial and technology-based business model that enables itself to acquire and process its clients in a very cost-effective manner. This capability is supported in large part by NewTracker, its patented prospect management technology software, that will allow NewtekOne clients to easily interact with NewtekOne subject matter experts in the areas of Banking, Lending, Payments, Technology, Payroll, and Insurance. It offers NewtekOne's clients a single online dashboard to access all of NewtekOne's business and financial solutions.

Executives

Salvatore Francis Mulia	director	4 WHITNEY STREET EXTENSION, WESTPORT CT 06880
Barry Sloane	director, officer: CEO and President
Richard J Salute	director	P O BOX 306, WOODBURY NY 11797
Gregory L Zink	director	1981 MARCUS AVENUE, SUITE 130, LAKE SUCCESS NY 11042
Peter Mathison Downs	director	1440 PINEACRES BLVD, BAY SHORE NY 11706
Michael Scott Price	officer: Chief Financial Officer	200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Fernando Perez-hickman	director	200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Nicholas J Leger	officer: Chief Accounting Officer	348 ALFRED STREET, NORTH BABYLON NY 11703
Michael Adam Schwartz	officer: Chief Legal Officer, Secretary	C/O NEWTEK BUSINESS SERVICES INC, 462 SEVENTH AVENUE, 14TH FLOOR, NEW YORK NY 10018
Halli Razon-feingold	director	4800 T-REX AVENUE, SUITE 120, BOCA RATON FL 33019
Nicolas Young	officer: Chief Risk Officer	200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Christopher Towers	officer: Chief Accounting Officer	1981 MARCUS AVENUE, SUITE 130, LAKE SUCCESS NY 11042
Sam Kirschner	director	60 EAST 8TH STREET, #20K, NEW YORK NY 10003
Nilesh Joshi	officer: Chief Information Officer	5617 W. MOLLY LANE, PHOENIX AZ 85083
John Raven	officer: Chief Info. Security Officer