Omni Financial Services (Omni Financial Services) Beneish M-Score : 0.00 (As of May. 26, 2024)

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What is Omni Financial Services 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 Omni Financial Services's Beneish M-Score or its related term are showing as below:

During the past 5 years, the highest Beneish M-Score of Omni Financial Services was 0.00. The lowest was 0.00. And the median was 0.00.

Omni Financial Services 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 Omni Financial Services 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 * 0.3086

0.528 * 1

0.404 * 0.9966

0.892 * 1.8679

0.115 * 0.8926

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8112

4.679 * 0.00349

0.327 * 0.9011

-2.27

* 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 (Sep07) TTM:

Last Year (Sep06) TTM:

Total Receivables was $6.99 Mil.
Revenue was 10.358 + 10.096 + 9.022 + 8.797 = $38.27 Mil.
Gross Profit was 10.358 + 10.096 + 9.022 + 8.797 = $38.27 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $887.03 Mil.
Property, Plant and Equipment(Net PPE) was $23.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.23 Mil.
Selling, General, & Admin. Expense(SGA) was $9.54 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $128.12 Mil.
Net Income was 1.674 + 1.707 + 1.452 + 1.454 = $6.29 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.542 + 0.734 + 4.589 + -2.674 = $3.19 Mil.

Total Receivables was $12.13 Mil.
Revenue was 7.108 + 7.05 + 6.332 + 0 = $20.49 Mil.
Gross Profit was 7.108 + 7.05 + 6.332 + 0 = $20.49 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $643.32 Mil.
Property, Plant and Equipment(Net PPE) was $14.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.69 Mil.
Selling, General, & Admin. Expense(SGA) was $6.29 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $103.12 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)
	=	(6.993 / 38.273)	/	(12.131 / 20.49)
	=	0.182714	/	0.592045
	=	0.3086

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)
	=	(20.49 / 20.49)	/	(38.273 / 38.273)
	=	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 + 23.017) / 887.028)	/	(1 - (0 + 14.579) / 643.322)
	=	0.974052	/	0.977338
	=	0.9966

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
	=	38.273	/	20.49
	=	1.8679

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))
	=	(0.692 / (0.692 + 14.579))	/	(1.231 / (1.231 + 23.017))
	=	0.045315	/	0.050767
	=	0.8926

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)
	=	(9.535 / 38.273)	/	(6.293 / 20.49)
	=	0.249131	/	0.307125
	=	0.8112

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)
	=	((128.12 + 0) / 887.028)	/	((103.12 + 0) / 643.322)
	=	0.144437	/	0.160293
	=	0.9011

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
	=	(6.287 - 0	-	3.191)	/	887.028
	=	0.00349

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.

Omni Financial Services has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.

Omni Financial Services Beneish M-Score Related Terms

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Omni Financial Services (Omni Financial Services) Business Description

Industry

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Traded in Other Exchanges

N/A

Address

12610 New Brittany Boulevard, Suite 2300, Ft. Myers, FL, USA, 33907

Website

http://www.omnifinserv.com

Omni Financial Services Inc is a financial services firm, helping its clients improve their long-term financial success. It offers financial products and the advice and expertise of financial professionals in the industry. It provides financial solutions to individuals and businesses.