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PLQC (Plains Acquisition) Beneish M-Score : -2.38 (As of Mar. 18, 2025)


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What is Plains Acquisition 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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PLQC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.38   Med: -2.36   Max: -2.35
Current: -2.38

During the past 6 years, the highest Beneish M-Score of Plains Acquisition was -2.35. The lowest was -2.38. And the median was -2.36.


Plains Acquisition 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 Plains Acquisition 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 * 0.9905+0.528 * 1+0.404 * 1.0013+0.892 * 1.0892+0.115 * 0.8439
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0149+4.679 * -0.003945-0.327 * 0.8065
=-2.38

* 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 (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was $3.70 Mil.
Revenue was $46.10 Mil.
Gross Profit was $46.10 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $878.47 Mil.
Property, Plant and Equipment(Net PPE) was $6.14 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.17 Mil.
Selling, General, & Admin. Expense(SGA) was $2.89 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $19.69 Mil.
Net Income was $17.02 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $20.48 Mil.
Total Receivables was $3.43 Mil.
Revenue was $42.32 Mil.
Gross Profit was $42.32 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $819.34 Mil.
Property, Plant and Equipment(Net PPE) was $6.82 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.06 Mil.
Selling, General, & Admin. Expense(SGA) was $2.62 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $22.78 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)
=(3.704 / 46.1) / (3.433 / 42.323)
=0.080347 / 0.081114
=0.9905

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)
=(42.323 / 42.323) / (46.1 / 46.1)
=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 - (0 + 6.141) / 878.474) / (1 - (0 + 6.819) / 819.338)
=0.993009 / 0.991677
=1.0013

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
=46.1 / 42.323
=1.0892

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))
=(1.062 / (1.062 + 6.819)) / (1.167 / (1.167 + 6.141))
=0.134754 / 0.159688
=0.8439

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)
=(2.893 / 46.1) / (2.617 / 42.323)
=0.062755 / 0.061834
=1.0149

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)
=((19.694 + 0) / 878.474) / ((22.776 + 0) / 819.338)
=0.022418 / 0.027798
=0.8065

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
=(17.016 - 0 - 20.482) / 878.474
=-0.003945

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.

Plains Acquisition has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.


Plains Acquisition Beneish M-Score Related Terms

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Plains Acquisition Business Description

Traded in Other Exchanges
N/A
Address
19404 Kenswick Drive, Humble, TX, USA, 77338
Plains Acquisition Corp is a United States-based bank holding company. It offers a full range of banking services. It provides loans to small and medium-sized businesses and individuals in its market area. The Bank operates full-service branch locations in Humble, Houston, Plains, Sugar Land, and Conroe, Texas, and limited-service branches or loan production offices in Houston and San Antonio, Texas.