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HF Financial (HF Financial) Beneish M-Score : 0.00 (As of May. 05, 2024)


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What is HF Financial 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.

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

During the past 13 years, the highest Beneish M-Score of HF Financial was 0.00. The lowest was 0.00. And the median was 0.00.


HF 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 HF 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 * 0.8946+0.528 * 1+0.404 * 0.9993+0.892 * 1.1678+0.115 * 1.001
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8843+4.679 * -0.005011-0.327 * 1.2788
=-2.52

* 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 (Mar16) TTM:Last Year (Mar15) TTM:
Total Receivables was $5.19 Mil.
Revenue was 12.104 + 12.838 + 16.052 + 13.197 = $54.19 Mil.
Gross Profit was 12.104 + 12.838 + 16.052 + 13.197 = $54.19 Mil.
Total Current Assets was $24.51 Mil.
Total Assets was $1,141.88 Mil.
Property, Plant and Equipment(Net PPE) was $16.11 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.91 Mil.
Selling, General, & Admin. Expense(SGA) was $28.32 Mil.
Total Current Liabilities was $13.34 Mil.
Long-Term Debt & Capital Lease Obligation was $90.03 Mil.
Net Income was 2.069 + 1.478 + 3.852 + 1.963 = $9.36 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 10.146 + 3.557 + 1.912 + -0.531 = $15.08 Mil.
Total Receivables was $4.97 Mil.
Revenue was 10.904 + 12.489 + 11.627 + 11.386 = $46.41 Mil.
Gross Profit was 10.904 + 12.489 + 11.627 + 11.386 = $46.41 Mil.
Total Current Assets was $24.90 Mil.
Total Assets was $1,138.37 Mil.
Property, Plant and Equipment(Net PPE) was $14.88 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.77 Mil.
Selling, General, & Admin. Expense(SGA) was $27.42 Mil.
Total Current Liabilities was $14.55 Mil.
Long-Term Debt & Capital Lease Obligation was $66.04 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)
=(5.192 / 54.191) / (4.97 / 46.406)
=0.095809 / 0.107098
=0.8946

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)
=(46.406 / 46.406) / (54.191 / 54.191)
=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 - (24.512 + 16.114) / 1141.877) / (1 - (24.903 + 14.882) / 1138.366)
=0.964422 / 0.965051
=0.9993

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
=54.191 / 46.406
=1.1678

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))
=(1.766 / (1.766 + 14.882)) / (1.91 / (1.91 + 16.114))
=0.106079 / 0.10597
=1.001

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)
=(28.315 / 54.191) / (27.42 / 46.406)
=0.522504 / 0.590872
=0.8843

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)
=((90.029 + 13.339) / 1141.877) / ((66.038 + 14.548) / 1138.366)
=0.090525 / 0.070791
=1.2788

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
=(9.362 - 0 - 15.084) / 1141.877
=-0.005011

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.

HF Financial has a M-score of -2.52 suggests that the company is unlikely to be a manipulator.


HF Financial Beneish M-Score Related Terms

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HF Financial (HF Financial) Business Description

Traded in Other Exchanges
N/A
Address
HF Financial Corp was incorporated under the laws of the State of Delaware in November 1991. The Company was formed for owning all of the outstanding stock of Home Federal Bank issued in the mutual to stock conversion of the Bank. The Company is regulated as a bank holding company by the Board of Governors of the Federal Reserve System. The Bank provides full-service consumer and commercial business banking, including an array of financial products, to meet the needs of its market place. The Bank attracts deposits from the general public and uses such deposits, together with borrowings and other funds, to originate one-to-four family residential, commercial business, consumer, multi-family, commercial real estate, construction and agricultural loans. The Bank's consumer loan portfolio includes, among other things, automobile loans, home equity loans, loans secured by deposit accounts and student loans. The Bank also purchases agency residential mortgage-backed securities and invests in U.S. Government and agency obligations and other permissible investments. The Bank, through its wholly owned subsidiaries, offers annuities, mutual funds, life insurance and other financial products, and equipment leasing services. The Company's reportable segments are banking (including leasing activities) and other. The banking segment is conducted through the Bank and Mid America Capital and the other segment is composed of smaller non-reportable segments, the Company and intersegment eliminations. The Bank's primary market area includes communities located in eastern and central South Dakota, including the Sioux Falls metropolitan statistical area ("MSA"), and the cities of Mitchell, Aberdeen, Brookings, Watertown, and Yankton. The Bank has a banking center in Marshall, Minnesota, which serves customers located in southwestern Minnesota. It competes with other commercial banks, credit unions, savings and loan associations, mortgage banking firms, consumer finance companies, securities brokerage firms, insurance companies, money market funds and other mutual funds, as well as super-regional, national and international financial institutions.
Executives
John W Palmer director C/O SECURITY FINANCIAL BANCORP INC, 9321 WICKER AVE, ST JOHN IN 46373
Stephen M Bianchi officer: President / CEO 225 S. MAIN AVENUE, SIOUX FALLS SD 57104
Christine E Hamilton director 225 S MAIN AVE, P O BOX 5000, SIOUX FALLS SD 57117