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AmeriServ Financial Inc (NAS:ASRV)
Beneish M-Score
-2.57 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

AmeriServ Financial Inc has a M-score of -2.56 suggests that the company is not a manipulator.

ASRV' s Beneish M-Score Range Over the Past 10 Years
Min: -4.95   Max: -2.24
Current: -2.57

-4.95
-2.24

During the past 13 years, the highest Beneish M-Score of AmeriServ Financial Inc was -2.24. The lowest was -4.95. And the median was -2.61.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 AmeriServ Financial Inc 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 * 0.934+0.528 * 1+0.404 * 1.0014+0.892 * 1.0467+0.115 * 0.9601
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9216+4.679 * -0.0033-0.327 * 1.183
=-2.56

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $3.06 Mil.
Revenue was 12.44 + 13.05 + 12.492 + 12.646 = $50.63 Mil.
Gross Profit was 12.44 + 13.05 + 12.492 + 12.646 = $50.63 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,148.92 Mil.
Property, Plant and Equipment(Net PPE) was $12.11 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.79 Mil.
Selling, General & Admin. Expense(SGA) was $25.14 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $68.74 Mil.
Net Income was 1.374 + 1.833 + 1.421 + 1.369 = $6.00 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 3.274 + 1.524 + 2.249 + 2.785 = $9.83 Mil.
Accounts Receivable was $3.13 Mil.
Revenue was 12.292 + 11.996 + 12.022 + 12.057 = $48.37 Mil.
Gross Profit was 12.292 + 11.996 + 12.022 + 12.057 = $48.37 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,089.26 Mil.
Property, Plant and Equipment(Net PPE) was $13.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.84 Mil.
Selling, General & Admin. Expense(SGA) was $26.06 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $55.09 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(3.057 / 50.628) / (3.127 / 48.367)
=0.06038161 / 0.06465152
=0.934

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)
=(13.05 / 48.367) / (12.44 / 50.628)
=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 plant, property 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 + 12.108) / 1148.922) / (1 - (0 + 13.012) / 1089.263)
=0.98946143 / 0.98805431
=1.0014

4. SGI = Sales Growth Index

Ratio of sales 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
=50.628 / 48.367
=1.0467

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(1.836 / (1.836 + 13.012)) / (1.79 / (1.79 + 12.108))
=0.12365302 / 0.12879551
=0.9601

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(25.14 / 50.628) / (26.061 / 48.367)
=0.49656317 / 0.53881779
=0.9216

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((68.735 + 0) / 1148.922) / ((55.085 + 0) / 1089.263)
=0.05982565 / 0.05057089
=1.183

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
=(5.997 - 0 - 9.832) / 1148.922
=-0.0033

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

AmeriServ Financial Inc has a M-score of -2.56 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

AmeriServ Financial Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.92860.9280.79190.94390.89541.01190.89510.95291.08060.934
GMI 1111111111
AQI 1.00031.00020.99951.00030.99851.00010.99910.99941.00051.0014
SGI 1.08741.04321.16981.0180.99890.99011.02821.03090.99511.0467
DEPI 1.24991.16661.24171.42620.94721.02721.06321.00550.91950.9601
SGAI 0.90070.9931.06811.16750.89141.03530.95341.00170.99810.922
LVGI 0.91340.99021.92691.43880.60020.81011.33691.38391.40221.183
TATA -0.0031-0.0081-0.0035-0.0063-0.0015-0.00430.0018-0.0091-0.0018-0.0033
M-score -2.41-2.52-2.82-2.67-2.44-2.44-2.64-2.66-2.56-2.56

AmeriServ Financial Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.95290.93750.96220.98511.08061.02841.02430.97180.9340
GMI 1111111111
AQI 0.99941.00010.99991.00031.00051.00081.00131.00141.00141.0117
SGI 1.03091.03241.02131.0090.99511.00311.01431.041.04671.0209
DEPI 1.00550.91910.89270.87450.91950.94330.93980.94970.96010.1255
SGAI 1.00170.9870.99661.00850.98690.97080.94510.91420.92160.9509
LVGI 1.38391.34351.56011.42511.40221.32361.19941.17531.1831.6608
TATA -0.0091-0.0049-0.003-0.0002-0.0018-0.0019-0.0036-0.0037-0.0033-0.0033
M-score -2.66-2.65-2.70-2.64-2.56-2.57-2.52-2.54-2.56-3.70
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