Banc Of California Stock Beneish M Score

BANC-PF Stock   24.56  0.06  0.24%   
This module uses fundamental data of Banc Of to approximate the value of its Beneish M Score. Banc Of M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Banc Of Piotroski F Score and Banc Of Altman Z Score analysis.
  
At this time, Banc Of's Short Term Debt is most likely to decrease significantly in the upcoming years. The Banc Of's current Debt To Equity is estimated to increase to 1.41, while Long Term Debt is projected to decrease to roughly 991.2 M. At this time, Banc Of's Free Cash Flow Yield is most likely to increase slightly in the upcoming years. The Banc Of's current Operating Cash Flow Per Share is estimated to increase to 0.92, while PTB Ratio is projected to decrease to 0.55.
At this time, it appears that Banc of California is an unlikely manipulator. The earnings manipulation may begin if Banc Of's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Banc Of executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Banc Of's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.53
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.61

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.09

Focus
Gross Margin Strengs

0.87

Focus
Accruals Factor

1.09

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.97

Focus
Financial Leverage Condition

1.0

Focus

Banc Of Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Banc Of's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables117.9 M198.7 M
Way Down
Slightly volatile
Total Revenue309.6 M320.1 M
Sufficiently Down
Slightly volatile
Total Assets46.5 B44.3 B
Sufficiently Up
Slightly volatile
Total Current Assets6.8 B6.4 B
Sufficiently Up
Slightly volatile
Non Current Assets Total47.4 B45.2 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization52.6 M105 M
Way Down
Slightly volatile
Selling General Administrative401.3 M382.2 M
Sufficiently Up
Slightly volatile
Total Current Liabilities34.1 B32.5 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total3.8 B4.4 B
Fairly Down
Slightly volatile
Short Term Debt46.8 M35.8 M
Significantly Up
Slightly volatile
Long Term Debt991.2 M1.2 B
Significantly Down
Slightly volatile
Total Cash From Operating Activities124.4 M156.1 M
Significantly Down
Slightly volatile
Short Term Investments1.6 B2.7 B
Way Down
Slightly volatile
Long Term Investments6.3 BB
Sufficiently Up
Slightly volatile
Gross Profit Margin0.770.89
Fairly Down
Pretty Stable

Banc of California Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Banc Of's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Banc Of in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Banc Of's degree of accounting gimmicks and manipulations.

About Banc Of Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

52.6 Million

At this time, Banc Of's Depreciation And Amortization is most likely to increase significantly in the upcoming years.

Banc Of Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Banc Of. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Debt595.9M588.0M773.4M(1.5B)(1.4B)(1.3B)

About Banc Of Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Banc of California's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Banc Of using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Banc of California based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Other Information on Investing in Banc Stock

Banc Of financial ratios help investors to determine whether Banc Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Banc with respect to the benefits of owning Banc Of security.