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NewtekOne (NAS:NEWT) Beneish M-Score

: -3.26 (As of Today)
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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 -3.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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: -3.26   Med: -2.22   Max: 18.63
Current: -3.26

During the past 13 years, the highest Beneish M-Score of NewtekOne was 18.63. The lowest was -3.26. And the median was -2.22.


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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.0384+0.528 * 1+0.404 * 0.9936+0.892 * 0.7118+0.115 * 1.1231
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5924+4.679 * 0.094833-0.327 * 0.9825
=-3.26

* 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 (Dec22) TTM:Last Year (Dec21) TTM:
Total Receivables was $1.3 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 $55.0 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 $14.8 Mil.
Total Current Liabilities was $36.9 Mil.
Long-Term Debt & Capital Lease Obligation was $547.3 Mil.
Net Income was -2.222 + 11.362 + 13.519 + 9.652 = $32.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 65.175 + -62.412 + -71.659 + 6.478 = $-62.4 Mil.
Total Receivables was $48.9 Mil.
Revenue was 37.098 + 33.383 + 32.096 + 45.184 = $147.8 Mil.
Gross Profit was 37.098 + 33.383 + 32.096 + 45.184 = $147.8 Mil.
Total Current Assets was $51.3 Mil.
Total Assets was $1,056.6 Mil.
Property, Plant and Equipment(Net PPE) was $7.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.3 Mil.
Selling, General, & Admin. Expense(SGA) was $13.1 Mil.
Total Current Liabilities was $147.8 Mil.
Long-Term Debt & Capital Lease Obligation was $481.1 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)
=(1.338 / 105.17) / (48.932 / 147.761)
=0.012722 / 0.331156
=0.0384

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)
=(147.761 / 147.761) / (105.17 / 105.17)
=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 - (55.03 + 6.484) / 998.902) / (1 - (51.329 + 7.31) / 1056.561)
=0.938418 / 0.9445
=0.9936

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
=105.17 / 147.761
=0.7118

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))
=(0.304 / (0.304 + 7.31)) / (0.239 / (0.239 + 6.484))
=0.039926 / 0.03555
=1.1231

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)
=(14.807 / 105.17) / (13.064 / 147.761)
=0.140791 / 0.088413
=1.5924

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)
=((547.299 + 36.908) / 998.902) / ((481.108 + 147.795) / 1056.561)
=0.584849 / 0.595236
=0.9825

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
=(32.311 - 0 - -62.418) / 998.902
=0.094833

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 -3.26 suggests that the company is unlikely to be a manipulator.


NewtekOne Beneish M-Score Related Terms

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NewtekOne (NAS:NEWT) Business Description

NewtekOne logo
Traded in Other Exchanges
Address
4800 T Rex Avenue, Suite 120, Boca Raton, FL, USA, 33431
NewtekOne Inc, formerly Newtek Business Services Corp is a non-diversified closed-end management investment company. The firm's investment objective is to generate current income and capital appreciation. The company provides business solutions that are designed to help organizations to grow sales, reduce costs, and minimize risk. Its solutions include web design, domains, hosting, website security, and others.
Executives
Fernando Perez-hickman director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
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
Nicholas J Leger officer: Chief Accounting Officer 348 ALFRED STREET, NORTH BABYLON NY 11703
Christopher Towers officer: Chief Accounting Officer 1981 MARCUS AVENUE, SUITE 130, LAKE SUCCESS NY 11042
Gregory L Zink director 1981 MARCUS AVENUE, SUITE 130, LAKE SUCCESS NY 11042
Nilesh Joshi officer: Chief Information Officer 5617 W. MOLLY LANE, PHOENIX AZ 85083
Dean Choksi officer: Treasurer 212 WEST 35TH STREET, FLOOR 2, NEW YORK NY 10001
John Raven officer: Chief Info. Security Officer
Richard J Salute director P O BOX 306, WOODBURY NY 11797
Michael Adam Schwartz officer: Chief Legal Officer, Secretary C/O NEWTEK BUSINESS SERVICES INC, 462 SEVENTH AVENUE, 14TH FLOOR, NEW YORK NY 10018
Barry Sloane director, officer: CEO and President
Peter Mathison Downs director 1440 PINEACRES BLVD, BAY SHORE NY 11706
Salvatore Francis Mulia director 4 WHITNEY STREET EXTENSION, WESTPORT CT 06880
Jennifer Catherine Eddelson officer: Principal Financial Officer 60 HEMPSTEAD AVENUE, 6TH FLOOR, WEST HEMPSTEAD NY 11552