Standard Premium Finance Holdings (Standard Premium Finance Holdings) Beneish M-Score : -2.52 (As of May. 08, 2024)

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What is Standard Premium Finance Holdings 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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SPFX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.58 Med: -2.52 Max: -2.28
Current: -2.52

During the past 5 years, the highest Beneish M-Score of Standard Premium Finance Holdings was -2.28. The lowest was -2.58. And the median was -2.52.

Standard Premium Finance Holdings 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 Standard Premium Finance Holdings 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 * 1.2246

0.528 * 1

0.404 * 1.003

0.892 * 1.0025

0.115 * 0.728

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0851

4.679 * -0.034485

0.327 * 0.6759

-2.37

* 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 $60.74 Mil.
Revenue was 1.148 + 1.021 + 0.968 + 0.844 = $3.98 Mil.
Gross Profit was 1.148 + 1.021 + 0.968 + 0.844 = $3.98 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $62.38 Mil.
Property, Plant and Equipment(Net PPE) was $0.24 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.15 Mil.
Selling, General, & Admin. Expense(SGA) was $1.92 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $6.55 Mil.
Net Income was 0.171 + 0.117 + 0.176 + 0.069 = $0.53 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.197 + 0.67 + 0.882 + 0.935 = $2.68 Mil.

Total Receivables was $49.48 Mil.
Revenue was 0.925 + 0.987 + 1.054 + 1.005 = $3.97 Mil.
Gross Profit was 0.925 + 0.987 + 1.054 + 1.005 = $3.97 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $51.49 Mil.
Property, Plant and Equipment(Net PPE) was $0.35 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.14 Mil.
Selling, General, & Admin. Expense(SGA) was $1.77 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $8.00 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)
	=	(60.74 / 3.981)	/	(49.475 / 3.971)
	=	15.257473	/	12.459078
	=	1.2246

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)
	=	(3.971 / 3.971)	/	(3.981 / 3.981)
	=	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 + 0.242) / 62.375)	/	(1 - (0 + 0.352) / 51.489)
	=	0.99612	/	0.993164
	=	1.003

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
	=	3.981	/	3.971
	=	1.0025

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))
	=	(0.139 / (0.139 + 0.352))	/	(0.154 / (0.154 + 0.242))
	=	0.283096	/	0.388889
	=	0.728

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)
	=	(1.92 / 3.981)	/	(1.765 / 3.971)
	=	0.482291	/	0.444472
	=	1.0851

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)
	=	((6.551 + 0) / 62.375)	/	((8.001 + 0) / 51.489)
	=	0.105026	/	0.155392
	=	0.6759

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
	=	(0.533 - 0	-	2.684)	/	62.375
	=	-0.034485

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.

Standard Premium Finance Holdings has a M-score of -2.37 suggests that the company is unlikely to be a manipulator.

Standard Premium Finance Holdings Beneish M-Score Related Terms

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Standard Premium Finance Holdings (Standard Premium Finance Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Standard Premium Finance Holdings Inc (OTCPK:SPFX) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

13590 SW 134th Avenue, Suite 214, Miami, FL, USA, 33186

Website

https://www.standardpremium.com

Standard Premium Finance Holdings Inc is a specialized finance company that makes collateralized loans to businesses and individuals to finance the insurance premiums they pay on their commercial property and casualty insurance policies. The company operates in the states of Arizona, Florida, Georgia, North Carolina, South Carolina, Texas and Tennessee. The company originate loans mainly in Florida, although it operates in several states. It generates the majority of its revenue through interest income and the associated fees earned from loan products.

Executives

John Leavitt	director	13590 SW 134TH AVE #214, MIAMI FL 33186
Brian Krogol	director, officer: CFO	13590 SW 134TH AVE #214, MIAMI FL 33186
William Koppelmann	director, 10 percent owner, officer: CEO	13590 SW 134TH AVE #214, MIAMI FL 33186
Margaret Ruiz	officer: Corporate Secretary	13590 SW 134TH AVE #214, MIAMI FL 33186
Victor Galliano	officer: VP of Marketing	13590 SW 134TH AVE #214, MIAMI FL 33186
Robert Mattucci	officer: VP of Sales	13590 SW 134TH AVE #214, MIAMI FL 33186
Ramon Mejido	officer: VP of Technology	13590 SW 134TH AVE #214, MIAMI FL 33186
Samuel Konig	director, officer: Executive Vice President	19707 TURNBERRY WAY, APT 27C, AVENTURA FL 33180
Bobby Story	director, officer: Chief Financial Officer	14000 MILITARY TRAIL, SUITE 104, DELRAY BEACH FL 33484
Mark Eliot Kutner	director	13590 SW 134TH AVE #214, MIAMI FL 33186
Carl Christian Hoechner	director	13590 SW 134TH AVE #214, MIAMI FL 33186
Scott Howell	director	13590 SW 134TH AVE #214, MIAMI FL 33186
Christopher Perrucci	director	13590 SW 134TH AVE #214, MIAMI FL 33186
James Albert Wall	director	13590 SW 134TH AVE #214, MIAMI FL 33186