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LendingClub Beneish M-Score

: 0.12 (As of Today)
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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 0.12 higher than -1.78, which implies that the company might have manipulated its financial results.

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

LC' s Beneish M-Score Range Over the Past 10 Years
Min: -5.57   Med: -2.08   Max: 0.12
Current: 0.12

During the past 10 years, the highest Beneish M-Score of LendingClub was 0.12. The lowest was -5.57. And the median was -2.08.


LendingClub Beneish M-Score Historical Data

The historical data trend for LendingClub's Beneish M-Score can be seen below:

* 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.

* Premium members only.

LendingClub Annual Data
Trend Mar12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.26 -2.30 -2.19 -5.57 0.10

LendingClub Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.92 -2.77 0.10 -0.14 0.12

Competitive Comparison

For the Credit Services subindustry, LendingClub's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

LendingClub Beneish M-Score Distribution

For the Credit Services industry and Financial Services sector, LendingClub's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where LendingClub's Beneish M-Score falls into.



LendingClub 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 LendingClub 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 * 1+0.528 * 1+0.404 * 0.9604+0.892 * 2.4976+0.115 * 10.8445
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6871+4.679 * -0.0259-0.327 * 0.3277
=0.12

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $0 Mil.
Revenue was 324.388 + 284.013 + 257.827 + 241.9 = $1,108 Mil.
Gross Profit was 324.388 + 284.013 + 257.827 + 241.9 = $1,108 Mil.
Total Current Assets was $1,445 Mil.
Total Assets was $6,187 Mil.
Property, Plant and Equipment(Net PPE) was $192 Mil.
Depreciation, Depletion and Amortization(DDA) was $4 Mil.
Selling, General, & Admin. Expense(SGA) was $537 Mil.
Total Current Liabilities was $120 Mil.
Long-Term Debt & Capital Lease Obligation was $238 Mil.
Net Income was 182.06 + 40.836 + 29.108 + 27.185 = $279 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 191.282 + 40.673 + 121.582 + 85.667 = $439 Mil.
Total Receivables was $0 Mil.
Revenue was 200.141 + 102.548 + 72.349 + 68.631 = $444 Mil.
Gross Profit was 200.141 + 102.548 + 72.349 + 68.631 = $444 Mil.
Total Current Assets was $846 Mil.
Total Assets was $4,370 Mil.
Property, Plant and Equipment(Net PPE) was $177 Mil.
Depreciation, Depletion and Amortization(DDA) was $49 Mil.
Selling, General, & Admin. Expense(SGA) was $313 Mil.
Total Current Liabilities was $154 Mil.
Long-Term Debt & Capital Lease Obligation was $617 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)
=(0 / 1108.128) / (0 / 443.669)
=0 / 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)
=(443.669 / 443.669) / (1108.128 / 1108.128)
=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 - (1444.974 + 191.632) / 6186.765) / (1 - (846.151 + 177.288) / 4370.101)
=0.7354666 / 0.76580885
=0.9604

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
=1108.128 / 443.669
=2.4976

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))
=(48.884 / (48.884 + 177.288)) / (3.897 / (3.897 + 191.632))
=0.21613639 / 0.01993055
=10.8445

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)
=(536.825 / 1108.128) / (312.795 / 443.669)
=0.48444313 / 0.70501883
=0.6871

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)
=((237.631 + 120.165) / 6186.765) / ((617.397 + 153.929) / 4370.101)
=0.05783249 / 0.17650073
=0.3277

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
=(279.189 - 0 - 439.204) / 6186.765
=-0.0259

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.

LendingClub has a M-score of 0.12 signals that the company is likely to be a manipulator.


LendingClub Beneish M-Score Related Terms

Thank you for viewing the detailed overview of LendingClub's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


LendingClub Business Description

LendingClub logo
Traded in Other Exchanges
Address
595 Market Street, Suite 200, San Francisco, CA, USA, 94105
LendingClub Corp is a company engaged in operating an online lending marketplace platform that connects borrowers and investors for the provision of the loan facility. It offers investors access to an asset class that has generally been closed to many investors and only available on a limited basis to institutional investors. The company through the platform offer loan products such as personal, education and patient finance, small business and auto to interested investors. It generates a majority of the revenue from the transaction fees received from the platform's role in accepting and decisioning applications on behalf of the bank partners to enable loan originations.
Executives
Harris Adrienne director 150 NORTH RIVERSIDE PLAZA SUITE 5200 CHICAGO IL 60606
Selleck Erin director C/O BROADWAY FINANCIAL CORPORATION 5055 WILSHIRE BLVD. SUITE 500 LOS ANGELES CA 90036
Landon Allan R director 130 MERCHANT ST 22ND FLR HONOLULU HI 96813
Armstrong Annie officer: Chief Risk Officer C/O LENDINGCLUB CORPORATION 595 MARKET ST. #200 SAN FRANCISCO CA 94105
Shanda Global Investment Ltd 10 percent owner 303 TWIN DOLPHIN DRIVE #6054 REDWOOD CITY CA 94065
Zeisser Michael P director
Pace Brandon officer: General Counsel and Secretary C/O LENDINGCLUB CORPORATION 595 MARKET ST, SUITE 200 SAN FRANCISCO CA 94105
Momen Ronnie officer: Chief Lending Officer C/O LENDINGCLUB CORPORATION SAN FRANCISCO CA 94105
Kay Valerie officer: Chief Capital Officer C/O LENDINGCLUB CORPORATION 71 STEVENSON ST, SUITE 1000 SAN FRANCISCO CA 94105
Koohestani Bahman officer: Chief Technology Officer 500 W. MADISON STREET #1000 CHICAGO IL 60661
Athey Susan C director C/O EXPEDIA, INC. 333 108TH AVE NE BELLEVUE WA 98004
Shanda Group Usa Ltd 10 percent owner 2735 SAND HILL ROAD #140 MENLO PARK CA 94025
Mccord Patricia J director C/O NETFLIX, INC 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Stack Fergal officer: SVP, Corporate Controller C/O LENDINGCLUB CORPORATION 71 STEVENSON ST., SUITE 300 SAN FRANCISCO CA 94105
Denman Kenneth D director

LendingClub Headlines

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