Switch to:
Carver Bancorp Inc (NAS:CARV)
Beneish M-Score
-2.22 (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.

Carver Bancorp Inc has a M-score of -2.22 suggests that the company is not a manipulator.

CARV' s Beneish M-Score Range Over the Past 10 Years
Min: -72.2   Max: 34.7
Current: -2.22

-72.2
34.7

During the past 13 years, the highest Beneish M-Score of Carver Bancorp Inc was 34.70. The lowest was -72.20. And the median was -2.48.


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 Carver Bancorp 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 * 1.0319+0.528 * 1+0.404 * 1.0028+0.892 * 1.3401+0.115 * 1.1466
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7371+4.679 * -0.0092-0.327 * 1.2716
=-2.22

* 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 $3.68 Mil.
Revenue was 8.579 + 6.768 + 6.343 + 12.185 = $33.88 Mil.
Gross Profit was 8.579 + 6.768 + 6.343 + 12.185 = $33.88 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $754.13 Mil.
Property, Plant and Equipment(Net PPE) was $6.46 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.78 Mil.
Selling, General & Admin. Expense(SGA) was $13.80 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $88.40 Mil.
Net Income was 0.437 + -0.165 + 0.178 + -0.127 = $0.32 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.222 + 1.483 + 0.782 + 5.232 = $7.28 Mil.
Accounts Receivable was $2.66 Mil.
Revenue was 5.66 + 6.16 + 5.969 + 7.489 = $25.28 Mil.
Gross Profit was 5.66 + 6.16 + 5.969 + 7.489 = $25.28 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $644.37 Mil.
Property, Plant and Equipment(Net PPE) was $7.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.04 Mil.
Selling, General & Admin. Expense(SGA) was $13.97 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $59.40 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)
=(3.677 / 33.875) / (2.659 / 25.278)
=0.10854613 / 0.10519028
=1.0319

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)
=(6.768 / 25.278) / (8.579 / 33.875)
=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 + 6.455) / 754.133) / (1 - (0 + 7.328) / 644.373)
=0.9914405 / 0.9886277
=1.0028

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
=33.875 / 25.278
=1.3401

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))
=(1.039 / (1.039 + 7.328)) / (0.784 / (0.784 + 6.455))
=0.12417832 / 0.10830225
=1.1466

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)
=(13.8 / 33.875) / (13.971 / 25.278)
=0.40738007 / 0.55269404
=0.7371

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)
=((88.403 + 0) / 754.133) / ((59.403 + 0) / 644.373)
=0.11722468 / 0.09218729
=1.2716

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
=(0.323 - 0 - 7.275) / 754.133
=-0.0092

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.

Carver Bancorp Inc has a M-score of -2.22 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.

Carver Bancorp Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.0371.39390.71340.98910.85030.81611.14590.90321.13160.9472
GMI 1111111111
AQI 1.00191.00020.99991.00061.00430.99941.00061.00151.00121.0018
SGI 1.05991.04711.31380.921.12580.98820.68981.10281.00571.1483
DEPI 1.14245.33370.3420.75210.90121.02350.93021.12720.96070.9356
SGAI 0.94861.05120.96861.16970.90921.03111.36620.89481.04510.8268
LVGI 0.77370.57970.89181.97371.12390.97240.42641.76740.91921.1206
TATA -0.04040.0220.0384-0.0237-0.0031-0.0618-0.0857-0.0308-0.0256-0.0051
M-score -2.48-1.35-2.32-3.05-2.55-2.94-2.91-2.84-2.46-2.44

Carver Bancorp Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.94291.12321.09591.09721.26981.00750.9780.96860.92341.0319
GMI 1111111111
AQI 1.00131.00131.00121.00131.00131.00121.00181.00151.00241.0028
SGI 1.10060.98881.03840.97630.98991.00731.11211.15681.19741.3401
DEPI 0.96420.94660.96071.10140.97820.97720.93560.74590.95711.1466
SGAI 0.8741.07511.01221.10761.1230.94230.85350.80920.7590.7371
LVGI 1.46641.30380.91920.7030.64470.61711.12060.89871.16851.2716
TATA -0.0267-0.0167-0.0256-0.0324-0.0101-0.004-0.0051-0.002-0.0077-0.0092
M-score -2.70-2.57-2.46-2.47-2.20-2.35-2.45-2.34-2.43-2.22
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK