UTG (UTGN) Beneish M-Score : -1.24 (As of May. 06, 2024)

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What is UTG 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.

Warning Sign:

Beneish M-Score -1.24 higher than -1.78, which implies that the company might have manipulated its financial results.

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

UTGN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.29 Med: -2.09 Max: -1.24
Current: -1.24

During the past 13 years, the highest Beneish M-Score of UTG was -1.24. The lowest was -3.29. And the median was -2.09.

UTG 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 UTG 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 * 2.8201

0.528 * 1

0.404 * 0.916

0.892 * 0.3655

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * 0.025949

0.327 * 0.8618

-1.24

* 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 $44.72 Mil.
Revenue was $25.52 Mil.
Gross Profit was $25.52 Mil.
Total Current Assets was $218.45 Mil.
Total Assets was $441.71 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.73 Mil.
Selling, General, & Admin. Expense(SGA) was $0.00 Mil.
Total Current Liabilities was $4.19 Mil.
Long-Term Debt & Capital Lease Obligation was $19.00 Mil.
Net Income was $1.96 Mil.
Gross Profit was $0.28 Mil.
Cash Flow from Operations was $-9.79 Mil.

Total Receivables was $43.38 Mil.
Revenue was $69.83 Mil.
Gross Profit was $69.83 Mil.
Total Current Assets was $200.58 Mil.
Total Assets was $447.53 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.03 Mil.
Selling, General, & Admin. Expense(SGA) was $0.00 Mil.
Total Current Liabilities was $8.26 Mil.
Long-Term Debt & Capital Lease Obligation was $19.00 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)
	=	(44.719 / 25.523)	/	(43.381 / 69.825)
	=	1.752106	/	0.621282
	=	2.8201

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)
	=	(69.825 / 69.825)	/	(25.523 / 25.523)
	=	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 - (218.446 + 0) / 441.709)	/	(1 - (200.581 + 0) / 447.534)
	=	0.505453	/	0.551808
	=	0.916

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
	=	25.523	/	69.825
	=	0.3655

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))
	=	(2.033 / (2.033 + 0))	/	(0.729 / (0.729 + 0))
	=	1	/	1
	=	1

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)
	=	(0 / 25.523)	/	(0 / 69.825)
	=	0	/	0
	=	1

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)
	=	((19 + 4.189) / 441.709)	/	((19 + 8.262) / 447.534)
	=	0.052498	/	0.060916
	=	0.8618

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
	=	(1.957 - 0.28	-	-9.785)	/	441.709
	=	0.025949

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.

UTG has a M-score of -1.24 signals that the company is likely to be a manipulator.

UTG Beneish M-Score Related Terms

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UTG (UTGN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » UTG Inc (OTCPK:UTGN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

205 North Depot Street, Stanford, KY, USA, 40484

Website

https://www.utgins.com

UTG Inc operates as a life insurance holding company. The company's primary business is individual life insurance which includes the servicing of existing insurance business in force and the acquisition of other companies in the insurance business and administration processing of life insurance business for other entities. Its product offering is the Tradition policy which is a fixed premium whole life insurance policy. Premiums are level and payable for life. Issue ages are 0-75. The second is the annuity product, which is a five-year, single premium product. The company's investment portfolio consists of fixed maturities, equity securities, trading securities, mortgage loans, notes receivable and real estate to provide funding for future policy contractual obligations.

Executives

Daniel T Roberts	officer: Vice President	205 NORTH DEPOT STREET, STANFORD KY 40484
Jesse T Correll	director, 10 percent owner, officer: Chairman & CEO
Bradley John Betack	officer: Secretary	205 NORTH DEPOT STREET, STANFORD KY 40484
John Cortines	director	205 NORTH DEPOT STREET, STANFORD KY 40484
Preston Howard Correll	director	205 NORTH DEPOT STREET, STANFORD KY 40484
April Chapman	director	205 NORTH DEPOT STREET, STANFORD KY 40484
First Southern Funding Llc	10 percent owner
Cumberland Lake Shell Inc	10 percent owner	PO BOX 430, SOMERSET KY 42502
Kirk A. Correll	10 percent owner	P.O. BOX 328, 99 LANCASTER STREET, STANFORD KY 40484
Estate Of Ward F. Correll	10 percent owner	P.O. BOX 328, 99 LANCASTER STREET, STANFORD KY 40484
James Patrick Rousey	director, officer: President	5250 SOUTH SIXTH STREET, SPRINGFIELD IL 62703
Douglas Paul Ditto	officer: Vice President	5250 SOUTH SIXTH STREET, SPRINGFIELD IL 62703
Thomas Eugene Harmon	director	5250 SOUTH SIXTH STREET, SPRINGFIELD IL 62703
Gabriel John Molnar	director	12910 SHELBYVILLE RD #200, LOUISVILLE KY 40243
Brian J Crall	director	101 PORTSMOUTH LANE, FRANKFORT KY 40601