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Pacific Health Care Organization (Pacific Health Care Organization) Beneish M-Score : -2.54 (As of May. 11, 2024)


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What is Pacific Health Care Organization Beneish M-Score?

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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PFHO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.3   Med: -2.51   Max: -2.23
Current: -2.54

During the past 13 years, the highest Beneish M-Score of Pacific Health Care Organization was -2.23. The lowest was -3.30. And the median was -2.51.


Pacific Health Care Organization Beneish M-Score Historical Data

The historical data trend for Pacific Health Care Organization's Beneish M-Score can be seen below:

* 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.

* Premium members only.

Pacific Health Care Organization Beneish M-Score Chart

Pacific Health Care Organization Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.42 -2.80 -2.48 -2.96 -2.54

Pacific Health Care Organization Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.96 -2.54 -3.15 -2.86 -2.54

Competitive Comparison of Pacific Health Care Organization's Beneish M-Score

For the Healthcare Plans subindustry, Pacific Health Care Organization's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pacific Health Care Organization's Beneish M-Score Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, Pacific Health Care Organization's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Pacific Health Care Organization's Beneish M-Score falls into.



Pacific Health Care Organization 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 Pacific Health Care Organization 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 * 1.1105+0.528 * 1+0.404 * 1.1888+0.892 * 0.9802+0.115 * 0.8634
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9567+4.679 * -0.014039-0.327 * 1.444
=-2.54

* 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 $1.02 Mil.
Revenue was 1.642 + 1.376 + 1.299 + 1.313 = $5.63 Mil.
Gross Profit was 1.642 + 1.376 + 1.299 + 1.313 = $5.63 Mil.
Total Current Assets was $11.68 Mil.
Total Assets was $11.82 Mil.
Property, Plant and Equipment(Net PPE) was $0.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.04 Mil.
Selling, General, & Admin. Expense(SGA) was $3.99 Mil.
Total Current Liabilities was $1.01 Mil.
Long-Term Debt & Capital Lease Obligation was $0.01 Mil.
Net Income was 0.281 + 0.179 + 0.176 + 0.131 = $0.77 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.501 + 0.165 + 0.308 + -0.041 = $0.93 Mil.
Total Receivables was $0.94 Mil.
Revenue was 1.463 + 1.454 + 1.4 + 1.427 = $5.74 Mil.
Gross Profit was 1.463 + 1.454 + 1.4 + 1.427 = $5.74 Mil.
Total Current Assets was $11.90 Mil.
Total Assets was $12.05 Mil.
Property, Plant and Equipment(Net PPE) was $0.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.03 Mil.
Selling, General, & Admin. Expense(SGA) was $4.25 Mil.
Total Current Liabilities was $0.71 Mil.
Long-Term Debt & Capital Lease Obligation was $0.01 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)
=(1.021 / 5.63) / (0.938 / 5.744)
=0.18135 / 0.163301
=1.1105

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)
=(5.744 / 5.744) / (5.63 / 5.63)
=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 - (11.683 + 0.134) / 11.824) / (1 - (11.898 + 0.148) / 12.052)
=0.000592 / 0.000498
=1.1888

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
=5.63 / 5.744
=0.9802

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))
=(0.034 / (0.034 + 0.148)) / (0.037 / (0.037 + 0.134))
=0.186813 / 0.216374
=0.8634

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)
=(3.987 / 5.63) / (4.252 / 5.744)
=0.708171 / 0.740251
=0.9567

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)
=((0.012 + 1.008) / 11.824) / ((0.011 + 0.709) / 12.052)
=0.086265 / 0.059741
=1.444

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
=(0.767 - 0 - 0.933) / 11.824
=-0.014039

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.

Pacific Health Care Organization has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.


Pacific Health Care Organization Beneish M-Score Related Terms

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Pacific Health Care Organization (Pacific Health Care Organization) Business Description

Traded in Other Exchanges
N/A
Address
19800 MacArthur Boulevard, Suites 306 and 307, Irvine, CA, USA, 92612
Pacific Health Care Organization Inc is a specialty workers' compensation managed care company. The company serves any size employer in the state of California as well as insurers, third-party administrators, self-administered employers, municipalities and other industries. Its services include two HCOs, MPNs, medical case management, utilization review, medical bill review, workers' compensation carve-outs and Medicare set-aside services. It also provides lien representation and expert witness testimony, ancillary to other services.
Executives
Tom Kubota director, 10 percent owner, officer: President, CEO 615 BAY HILL DR, NEWPROT BEACH CA 92660
Lauren Kubota director 1201 DOVE STREET, SUITE 300, NEWPORT BEACH CA 92660
Kristina Kubota director 1201 DOVE STREET, SUITE 300, NEWPORT BEACH CA 92660
Gunter Soraperra director LANGAKER 5A, NUZIDERS C4 A-6714
Stacy A Hadley director 5514 WILD MILBERRY DRIVE, KATY TX 77494
Fred U Odaka officer: Chief Financial Officer 21 TOULON, NEWPORT BEACH CA 92660
David Wang director 21 TOULON, NEWPORT BEACH CA 92660
Frank R. Hough officer: Chief Financial Officer 2222 FOOTHILL BOULEVARD, SUITE E-370, LA CANADA-FLINTRIDGE CA 91011
Thomas Iwanski director 1280 BISON STREET, SUITE B9-596, NEWPORT BEACH CA 92660
Donald Hellwig director, officer: Chief Financial Officer 1280 BISON STREET, SUITE B9-596, NEWPORT BEACH CA 92660
Tom Roush director 5557 NORTH CATTAIL WAY, BOISE ID 83714
Nanko Investments Inc 10 percent owner 615 BAY HILL DR, NEWPROT BEACH CA 92660
Rudy Larusso director, officer: Secretary 218 HOMEWOOD RD, LOS ANGELES CA 90049