Auburn National Bancorp (Auburn National Bancorp) Beneish M-Score

: -2.44 (As of Today)

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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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

AUBN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.7 Med: -2.4 Max: -2.25
Current: -2.44

During the past 13 years, the highest Beneish M-Score of Auburn National Bancorp was -2.25. The lowest was -2.70. And the median was -2.40.

Auburn National Bancorp 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 Auburn National Bancorp 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

0.528 * 1

0.404 * 1.1727

0.892 * 0.767

0.115 * 0.8826

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.4898

4.679 * -0.010774

0.327 * 0

-2.44

* 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 $0.00 Mil.
Revenue was 0.63 + 7.137 + 7.679 + 7.901 = $23.35 Mil.
Gross Profit was 0.63 + 7.137 + 7.679 + 7.901 = $23.35 Mil.
Total Current Assets was $310.87 Mil.
Total Assets was $975.26 Mil.
Property, Plant and Equipment(Net PPE) was $45.54 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.70 Mil.
Selling, General, & Admin. Expense(SGA) was $12.73 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was -3.985 + 1.488 + 1.928 + 1.964 = $1.40 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.209 + 3.318 + 2.484 + 4.891 = $11.90 Mil.

Total Receivables was $0.00 Mil.
Revenue was 8.135 + 8.095 + 7.222 + 6.986 = $30.44 Mil.
Gross Profit was 8.135 + 8.095 + 7.222 + 6.986 = $30.44 Mil.
Total Current Assets was $423.26 Mil.
Total Assets was $1,023.89 Mil.
Property, Plant and Equipment(Net PPE) was $46.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.53 Mil.
Selling, General, & Admin. Expense(SGA) was $11.14 Mil.
Total Current Liabilities was $2.96 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
	=	(0 / 23.347)	/	(0 / 30.438)
	=	0	/	0
	=	1

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)
	=	(30.438 / 30.438)	/	(23.347 / 23.347)
	=	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 - (310.867 + 45.535) / 975.255)	/	(1 - (423.258 + 46.575) / 1023.888)
	=	0.634555	/	0.541129
	=	1.1727

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
	=	23.347	/	30.438
	=	0.767

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))
	=	(1.528 / (1.528 + 46.575))	/	(1.7 / (1.7 + 45.535))
	=	0.031765	/	0.03599
	=	0.8826

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)
	=	(12.732 / 23.347)	/	(11.142 / 30.438)
	=	0.545338	/	0.366056
	=	1.4898

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 + 0) / 975.255)	/	((0 + 2.959) / 1023.888)
	=	0	/	0.00289
	=	0

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
	=	(1.395 - 0	-	11.902)	/	975.255
	=	-0.010774

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.

Auburn National Bancorp has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.

Auburn National Bancorp Beneish M-Score Related Terms

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Auburn National Bancorp (Auburn National Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Auburn National Bancorp Inc (NAS:AUBN) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

132 N. Gay Street, Auburn, AL, USA, 36830

Website

https://www.auburnbank.com

Auburn National Bancorp Inc operates as a bank holding company, which offers checking, savings, transaction deposit accounts and certificates of deposit, and is an active residential mortgage lender in its primary service area. The Bank's primary service area includes the cities of Auburn and Opelika, Alabama and nearby surrounding areas in East Alabama, primarily in Lee County. The Bank also offers commercial, financial, agricultural, real estate construction and consumer loan products and other financial services. The Bank also provides automated teller machine (ATM) services in East Alabama and operates ATM machines. The Bank offers Visa Checkcards, which are debit cards. The Bank offers online banking, bill payment and other electronic banking services through its Internet website.

Executives

David E Housel	director	100 NORTH GAY STREET, PO BOX 3110, AUBURN AL 36830
Shannon O'donnell	officer: SENIOR VICE PRESIDENT	2032 ST. PATRICK COURT, AUBURN AL 36830
J Tutt Barrett	director	P. O. BOX 49, OPELIKA AL 36803
Ham William F Jr	director	100 NORTH GAY STREET, PO BOX 3110, AUBURN AL 36830
David A Hedges	officer: Controller	1832 COOPER'S POND ROAD, AUBURN AL 36830
Terry W Andrus	director	100 NORTH GAY STREET, PO BOX 3110, AUBURN AL 36830
Wright Emil F Jr	director, 10 percent owner	100 NORTH GAY STREET, PO BOX 3110, AUBURN AL 36830
Lauretta Jenkins Cooper	director	1520 DUNBAR STREET, AUBURN AL 36830
Terrell E Bishop	officer: Senior Vice President	100 NORTH GAY STREET, PO BOX 3110, AUBURN AL 36830
Jerome B Siegel	officer: Senior Vice President	616 LOCKWOOD STREET, AUBURN AL 36830
Smith Charles Edward Jr	officer: Senior Vice President	100 NORTH GAY STREET, PO BOX 3110, AUBURN AL 36830
William Thomas Johnson	officer: Senior Vice President	100 NORTH GAY STREET, PO BOX 3110, AUBURN AL 36830
Samuel Mark Bridges	officer: Senior Vice President	P. O. BOX 3110, AUBURN AL 36831-3110
Pamela Meigs Fuller	officer: Vice President	P. O. BOX 3110, AUBURN AL 36831
Spencer Edward L Jr	10 percent owner	100 NORTH GAY STREET, PO BOX 3110, AUBURN AL 36830