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WaFd (WAFD) Beneish M-Score : -9.68 (As of Apr. 30, 2024)


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What is WaFd 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 -9.68 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WAFD' s Beneish M-Score Range Over the Past 10 Years
Min: -9.68   Med: -2.43   Max: -2.08
Current: -9.68

During the past 13 years, the highest Beneish M-Score of WaFd was -2.08. The lowest was -9.68. And the median was -2.43.


WaFd 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 WaFd 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 * 1.1406+0.528 * 1+0.404 * 0.9831+0.892 * 1.013+0.115 * -62.0433
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.057+4.679 * -0.000961-0.327 * 1.1991
=-9.68

* 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 $87.0 Mil.
Revenue was 168.23 + 177.796 + 183.193 + 184.911 = $714.1 Mil.
Gross Profit was 168.23 + 177.796 + 183.193 + 184.911 = $714.1 Mil.
Total Current Assets was $3,250.2 Mil.
Total Assets was $22,640.1 Mil.
Property, Plant and Equipment(Net PPE) was $237.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $-0.7 Mil.
Selling, General, & Admin. Expense(SGA) was $220.2 Mil.
Total Current Liabilities was $1.5 Mil.
Long-Term Debt & Capital Lease Obligation was $3,875.0 Mil.
Net Income was 58.453 + 50.208 + 61.775 + 65.934 = $236.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 110.26 + 82.879 + 20.153 + 44.825 = $258.1 Mil.
Total Receivables was $75.3 Mil.
Revenue was 196.711 + 187.613 + 169.744 + 150.876 = $704.9 Mil.
Gross Profit was 196.711 + 187.613 + 169.744 + 150.876 = $704.9 Mil.
Total Current Assets was $2,781.0 Mil.
Total Assets was $21,653.8 Mil.
Property, Plant and Equipment(Net PPE) was $240.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $57.7 Mil.
Selling, General, & Admin. Expense(SGA) was $205.7 Mil.
Total Current Liabilities was $17.0 Mil.
Long-Term Debt & Capital Lease Obligation was $3,075.0 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)
=(87.022 / 714.13) / (75.316 / 704.944)
=0.121857 / 0.10684
=1.1406

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)
=(704.944 / 704.944) / (714.13 / 714.13)
=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 - (3250.241 + 237.202) / 22640.122) / (1 - (2781.015 + 240.36) / 21653.811)
=0.845962 / 0.860469
=0.9831

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
=714.13 / 704.944
=1.013

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))
=(57.719 / (57.719 + 240.36)) / (-0.738 / (-0.738 + 237.202))
=0.193637 / -0.003121
=-62.0433

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)
=(220.225 / 714.13) / (205.668 / 704.944)
=0.308382 / 0.291751
=1.057

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)
=((3875 + 1.478) / 22640.122) / ((3075 + 16.995) / 21653.811)
=0.171222 / 0.142792
=1.1991

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
=(236.37 - 0 - 258.117) / 22640.122
=-0.000961

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.

WaFd has a M-score of -9.68 suggests that the company is unlikely to be a manipulator.


WaFd (WAFD) Business Description

Traded in Other Exchanges
Address
425 Pike Street, Seattle, WA, USA, 98101
WaFd Inc is engaged in providing lending, depository, insurance and other banking services to consumers, mid-sized to large businesses, and owners and developers of commercial real estate. Geographically It operates in Washington, Oregon, Arizona, Texas, Utah. New Mexico, Nevada, Idaho and others. WaFd Inc provides, Personal Banking, Business Banking, Commercial Banking and Home Loans.
Executives
Randall H Talbot director 777 108TH AVENUE NE, SUITE 1200, BELLEVUE WA 98124-1690
David K Grant director
Blayne Sanden officer: SVP & PAO 425 PIKE STREET, SEATTLE WA 98101
Brent J Beardall officer: EVP & CFO 425 PIKE STREET, SEATTLE WA 98101
Kim E Robison officer: EVP & Chief Operations Officer 425 PIKE STREET, SEATTLE WA 98101
Cathy E Cooper officer: EVP & Chief Consumer Banker 425 PIKE STREET, SEATTLE WA 98101
Kelli Holz officer: EVP & CFO PO BOX 580, BELLINGHAM WA 98227
Vincent L Beatty officer: EVP & Chief Financial Officer 425 PIKE STREET, SEATTLE WA 98101
Shawn Bice director C/O SPLUNK INC., 270 BRANNAN STREET, SAN FRANCISCO CA 94107
Ryan Mauer officer: EVP & Chief Credit Officer 425 PIKE STREET, SEATTLE WA 98101
James Endrizzi officer: EVP & Chief Commercial Banker 425 PIKE STREET, SEATTLE WA 98101
Sean Singleton director 425 PIKE ST, SEATTLE WA 98101
Sylvia Hampel director 425 PIKE ST, SEATTLE WA 98101
Sudhir Steven Singh director 6222 185TH AVE, REDMOND WA 98052
Linda S Brower director