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

View and export this data going back to 2022. Start your Free Trial

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:

-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

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

Plains Acquisition Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Plains Acquisition Corp (OTCPK:PLQC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

19404 Kenswick Drive, Humble, TX, USA, 77338

Website

https://www.psbplains.com

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.