Ocwen Financial Beneish M-Score Historical Data
The historical data trend for Ocwen Financial'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.
Ocwen Financial Beneish M-Score Chart
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Ocwen Financial Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.32 |
-2.41 |
-1.86 |
-2.34 |
-2.40 |
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Ocwen Financial Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
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Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.34 |
-2.22 |
-2.01 |
-2.19 |
-2.40 |
Competitive Comparison of Ocwen Financial's Beneish M-Score
For the Mortgage Finance subindustry, Ocwen Financial'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.
Ocwen Financial's Beneish M-Score Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Ocwen Financial's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Ocwen Financial's Beneish M-Score falls into.
Ocwen Financial 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 Ocwen Financial 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 * 0.9246 | + | 0.528 * 0.8992 | + | 0.404 * 0.883 | + | 0.892 * 1.1457 | + | 0.115 * 0.8807 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.6236 | + | 4.679 * 0.016838 | - | 0.327 * 1.0302 |
| = | -2.40 |
* 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 $8,808 Mil.
Revenue was 295.1 + 281.5 + 292.4 + 275.9 = $1,145 Mil.
Gross Profit was 160 + 136 + 148.8 + 139.9 = $585 Mil.
Total Current Assets was $9,794 Mil.
Total Assets was $12,514 Mil.
Property, Plant and Equipment(Net PPE) was $13 Mil.
Depreciation, Depletion and Amortization(DDA) was $12 Mil.
Selling, General, & Admin. Expense(SGA) was $107 Mil.
Total Current Liabilities was $220 Mil.
Long-Term Debt & Capital Lease Obligation was $10,878 Mil.
Net Income was -47.5 + 8.5 + 15.5 + -40.2 = $-64 Mil.
Non Operating Income was -70.3 + -71.2 + -74.5 + -68.8 = $-285 Mil.
Cash Flow from Operations was 281.8 + 377.3 + -441.3 + -207.4 = $10 Mil.
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Total Receivables was $8,314 Mil.
Revenue was 265.4 + 263.4 + 231.8 + 238.7 = $999 Mil.
Gross Profit was 126.7 + 122.7 + 90.9 + 118.6 = $459 Mil.
Total Current Assets was $9,341 Mil.
Total Assets was $12,399 Mil.
Property, Plant and Equipment(Net PPE) was $20 Mil.
Depreciation, Depletion and Amortization(DDA) was $15 Mil.
Selling, General, & Admin. Expense(SGA) was $149 Mil.
Total Current Liabilities was $265 Mil.
Long-Term Debt & Capital Lease Obligation was $10,410 Mil.
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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) |
| = | (8807.6 / 1144.9) | / | (8314.3 / 999.3) |
| = | 7.692899 | / | 8.320124 |
| | = | 0.9246 |
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) |
| = | (458.9 / 999.3) | / | (584.7 / 1144.9) |
| = | 0.459221 | / | 0.5107 |
| | = | 0.8992 |
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 - (9793.6 + 13.1) / 12513.7) | / | (1 - (9341.4 + 20.2) / 12399.2) |
| = | 0.216323 | / | 0.244984 |
| | = | 0.883 |
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 |
| = | 1144.9 | / | 999.3 |
| | = | 1.1457 |
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)) |
| = | (14.8 / (14.8 + 20.2)) | / | (12.1 / (12.1 + 13.1)) |
| = | 0.422857 | / | 0.480159 |
| | = | 0.8807 |
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) |
| = | (106.6 / 1144.9) | / | (149.2 / 999.3) |
| = | 0.093109 | / | 0.149305 |
| | = | 0.6236 |
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) |
| = | ((10878.4 + 219.9) / 12513.7) | / | ((10409.8 + 264.9) / 12399.2) |
| = | 0.886892 | / | 0.860918 |
| | = | 1.0302 |
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 |
| = | (-63.7 - -284.8 | - | 10.4) | / | 12513.7 |
| | = | 0.016838 |
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.
Ocwen Financial has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.
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