Switch to:
GuruFocus has detected 4 Warning Signs with The Bancorp Inc $TBBK.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
The Bancorp Inc (NAS:TBBK)
Beneish M-Score
-1.80 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

The Bancorp Inc has a M-score of -1.80 signals that the company is a manipulator.

TBBK' s Beneish M-Score Range Over the Past 10 Years
Min: -8.41   Max: -1.8
Current: -1.8

-8.41
-1.8

During the past 13 years, the highest Beneish M-Score of The Bancorp Inc was -1.80. The lowest was -8.41. And the median was -2.28.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 The Bancorp Inc 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 * 1.6167+0.528 * 1+0.404 * 0.9997+0.892 * 0.6943+0.115 * 0.9863
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2608+4.679 * 0.0927-0.327 * 0.9943
=-1.80

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $10.3 Mil.
Revenue was 49.096 + 19.332 + 43.446 + 30.43 = $142.3 Mil.
Gross Profit was 49.096 + 19.332 + 43.446 + 30.43 = $142.3 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,404.6 Mil.
Property, Plant and Equipment(Net PPE) was $23.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.4 Mil.
Selling, General & Admin. Expense(SGA) was $152.6 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $13.4 Mil.
Net Income was 7.963 + -28.772 + -25.551 + -31.36 = $-77.7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -66.175 + -87.876 + -154.322 + -177.489 = $-485.9 Mil.
Accounts Receivable was $9.2 Mil.
Revenue was 39.244 + 88.849 + 35.097 + 41.761 = $205.0 Mil.
Gross Profit was 39.244 + 88.849 + 35.097 + 41.761 = $205.0 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $4,379.7 Mil.
Property, Plant and Equipment(Net PPE) was $21.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.0 Mil.
Selling, General & Admin. Expense(SGA) was $174.4 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt was $13.4 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(10.296 / 142.304) / (9.172 / 204.951)
=0.07235215 / 0.04475216
=1.6167

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)
=(204.951 / 204.951) / (142.304 / 142.304)
=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 plant, property 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 + 22.993) / 4404.642) / (1 - (0 + 21.692) / 4379.719)
=0.99477983 / 0.99504717
=0.9997

4. SGI = Sales Growth Index

Ratio of sales 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
=142.304 / 204.951
=0.6943

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(5.967 / (5.967 + 21.692)) / (6.437 / (6.437 + 22.993))
=0.21573448 / 0.21872239
=0.9863

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(152.646 / 142.304) / (174.369 / 204.951)
=1.0726754 / 0.85078385
=1.2608

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((13.401 + 0) / 4404.642) / ((13.401 + 0) / 4379.719)
=0.00304247 / 0.00305979
=0.9943

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
=(-77.72 - 0 - -485.862) / 4404.642
=0.0927

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

The Bancorp Inc has a M-score of -1.80 signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

The Bancorp Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.04120.61410.97330.79271.60310.44541.3760.59911.7135
GMI 111111111
AQI 0.99961.00071.00021.000910.99940.99990.9990.9996
SGI 0.77331.61241.18131.20430.72541.94120.95951.40510.6525
DEPI 0.49060.90081.03470.97591.22081.12860.96421.13691.0285
SGAI 2.75160.74310.88531.01751.76490.65171.38561.04911.5994
LVGI 0.8750.87710.8530.79570.81380.80540.92121.046320.2408
TATA -0.0251-0.0211-0.0002-0.00950.00980.00540.02150.05210.025
M-score -3.08-2.31-2.27-2.47-2.17-1.99-2.11-2.25-8.41

The Bancorp Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.3760.7760.74240.97290.59910.57250.68120.68261.71351.6167
GMI 1111111111
AQI 0.99990.99940.99961.00010.9990.9990.9990.99880.99960.9997
SGI 0.95950.98871.07011.02421.40511.4191.30811.36890.65250.6943
DEPI 0.96421.00750.9860.89581.13691.08841.10281.07031.02850.9863
SGAI 1.38561.31481.21211.27361.04911.04541.1030.93891.59941.2608
LVGI 0.92120.96930.92650.91141.04631.1071.05811.117820.24080.9943
TATA 0.0215-0.00210.01370.03020.052100.0240.04150.0250.0927
M-score -2.11-2.75-2.60-2.37-2.25-2.53-2.41-2.27-8.41-1.80
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK