OptimumBank Holdings (OptimumBank Holdings) Beneish M-Score : -2.84 (As of Apr. 26, 2024)

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What is OptimumBank 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 -2.84 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OPHC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84 Med: -2.25 Max: -1.09
Current: -2.84

During the past 13 years, the highest Beneish M-Score of OptimumBank Holdings was -1.09. The lowest was -2.84. And the median was -2.25.

OptimumBank 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 OptimumBank 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 * 1.1855

0.528 * 1

0.404 * 1.046

0.892 * 1.4453

0.115 * 1.149

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.049

4.679 * -0.000757

0.327 * 3.9039

-2.84

* 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 $2.47 Mil.
Revenue was 8.188 + 6.825 + 6.364 + 5.788 = $27.17 Mil.
Gross Profit was 8.188 + 6.825 + 6.364 + 5.788 = $27.17 Mil.
Total Current Assets was $103.49 Mil.
Total Assets was $791.25 Mil.
Property, Plant and Equipment(Net PPE) was $3.54 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.56 Mil.
Selling, General, & Admin. Expense(SGA) was $8.26 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $64.25 Mil.
Net Income was 2.549 + 1.269 + 1.312 + 1.153 = $6.28 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.339 + 1.208 + 5.306 + 0.029 = $6.88 Mil.

Total Receivables was $1.44 Mil.
Revenue was 5.405 + 4.997 + 4.517 + 3.877 = $18.80 Mil.
Gross Profit was 5.405 + 4.997 + 4.517 + 3.877 = $18.80 Mil.
Total Current Assets was $98.38 Mil.
Total Assets was $585.22 Mil.
Property, Plant and Equipment(Net PPE) was $3.05 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.57 Mil.
Selling, General, & Admin. Expense(SGA) was $5.45 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $12.17 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)
	=	(2.474 / 27.165)	/	(1.444 / 18.796)
	=	0.091073	/	0.076825
	=	1.1855

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)
	=	(18.796 / 18.796)	/	(27.165 / 27.165)
	=	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 - (103.492 + 3.536) / 791.254)	/	(1 - (98.382 + 3.053) / 585.219)
	=	0.864736	/	0.826672
	=	1.046

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
	=	27.165	/	18.796
	=	1.4453

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))
	=	(0.569 / (0.569 + 3.053))	/	(0.56 / (0.56 + 3.536))
	=	0.157096	/	0.136719
	=	1.149

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)
	=	(8.261 / 27.165)	/	(5.449 / 18.796)
	=	0.304105	/	0.289902
	=	1.049

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)
	=	((64.248 + 0) / 791.254)	/	((12.172 + 0) / 585.219)
	=	0.081198	/	0.020799
	=	3.9039

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
	=	(6.283 - 0	-	6.882)	/	791.254
	=	-0.000757

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.

OptimumBank Holdings has a M-score of -2.84 suggests that the company is unlikely to be a manipulator.

OptimumBank Holdings Beneish M-Score Related Terms

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OptimumBank Holdings (OptimumBank Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » OptimumBank Holdings Inc (NAS:OPHC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2929 East Commercial Boulevard, Suite 303, Fort Lauderdale, FL, USA, 33308

Website

https://www.optimumbank.com

OptimumBank Holdings Inc serves as a bank holding company for OptimumBank. The Bank provides a range of community banking services to individuals and corporate customers. Its services include demand interest-bearing and non-interest-bearing accounts, negotiable order of withdrawal account, money market deposit accounts, debit cards, and automated teller machines.

Executives

Moishe Gubin	director	2929 E. COMMERCIAL BLVD, FORT LAUDERDALE FL 33308
Chan Heng Fai Ambrose	director	2601 INSLAND PLACE TOWER, 510 KINGS RD N POINT, HONG KONG K3 999999999
Jeffry T Wagner	director	7667 N. WICKHAM RD, SUITE 516, MELBOURNE FL 32940
Norman Joseph Ginsparg	director	3800 N 39 AVE, HOLLYWOOD FL 33021
Joel J. Klein	director	2477 E. COMMERCIAL BOULEVARD, FORT LAUDERDALE FL 33308
Seth Gillman	director	2477 E. COMMERCIAL BLVD, FORT LAUDERDALE FL 33308
Sam Borek	director	OPTIMUMBANK, 10197 CLEARY BOULEVARD, PLANTATION FL 33324
Thomas A Procelli	officer: EXECUTIVE VICE PRESIDENT	OPTIMUMBANK, 10197 CLEARY BOULEVARD, PLANTATION FL 33324
Wendy Mitchler	director	OPTIMUMBANK, 2477 EAST COMMERCIAL BOULEVARD, FORT LAUDERDALE FL 33308
Howard Zusman	officer: Sr. VP-CLO, OptimumBank	2477 EAST COMMERCIAL BLVD, FORT LAUDERDALE FL 33308
Robert Acri	director	2477 E. COMMERCIAL BOULEVARD, FORT LAUDERDALE FL 33308
David Krinsky	director	OPTIMUMBANK, 10197 CLEARY BOULEVARD, PLANTATION FL 33324
Albert J Finch	director, officer: Chairman of the Board, CEO	OPTIMUMBANK, 10197 CLEARY BOULEVARD, PLANTATION FL 33324
Richard L Browdy	director, officer: President, CFO	OPTIMUMBANK, 10197 CLEARY BOULEVARD, PLANTATION FL 33324
Irving P Cohen	director	OPTIMUMBANK, 10197 CLEARY BOULEVARD, PLANTATION FL 33324