Carver Bancorp (Carver Bancorp) Beneish M-Score

: -2.60 (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 -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CARV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.08 Med: -2.39 Max: -2.01
Current: -2.6

During the past 13 years, the highest Beneish M-Score of Carver Bancorp was -2.01. The lowest was -3.08. And the median was -2.39.

Carver 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 Carver 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 * 0.9005

0.528 * 1

0.404 * 0.9791

0.892 * 1.0668

0.115 * 0.8397

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0159

4.679 * 0.001151

0.327 * 1.1865

-2.60

* 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 $2.41 Mil.
Revenue was 8.001 + 6.855 + 6.238 + 6.758 = $27.85 Mil.
Gross Profit was 8.001 + 6.855 + 6.238 + 6.758 = $27.85 Mil.
Total Current Assets was $126.75 Mil.
Total Assets was $775.31 Mil.
Property, Plant and Equipment(Net PPE) was $13.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.02 Mil.
Selling, General, & Admin. Expense(SGA) was $17.32 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $57.82 Mil.
Net Income was 0.019 + -1.586 + -1.421 + -1.5 = $-4.49 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 3.301 + -5.306 + -1.709 + -1.666 = $-5.38 Mil.

Total Receivables was $2.51 Mil.
Revenue was 6.65 + 6.527 + 6.449 + 6.483 = $26.11 Mil.
Gross Profit was 6.65 + 6.527 + 6.449 + 6.483 = $26.11 Mil.
Total Current Assets was $99.87 Mil.
Total Assets was $712.24 Mil.
Property, Plant and Equipment(Net PPE) was $16.19 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.04 Mil.
Selling, General, & Admin. Expense(SGA) was $15.99 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $44.77 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)
	=	(2.414 / 27.852)	/	(2.513 / 26.109)
	=	0.086672	/	0.09625
	=	0.9005

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)
	=	(26.109 / 26.109)	/	(27.852 / 27.852)
	=	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 - (126.75 + 13.128) / 775.307)	/	(1 - (99.868 + 16.185) / 712.242)
	=	0.819584	/	0.83706
	=	0.9791

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
	=	27.852	/	26.109
	=	1.0668

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))
	=	(1.042 / (1.042 + 16.185))	/	(1.019 / (1.019 + 13.128))
	=	0.060486	/	0.072029
	=	0.8397

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)
	=	(17.324 / 27.852)	/	(15.986 / 26.109)
	=	0.622002	/	0.612279
	=	1.0159

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)
	=	((57.821 + 0) / 775.307)	/	((44.77 + 0) / 712.242)
	=	0.074578	/	0.062858
	=	1.1865

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
	=	(-4.488 - 0	-	-5.38)	/	775.307
	=	0.001151

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.

Carver Bancorp has a M-score of -2.60 suggests that the company is unlikely to be a manipulator.

Carver Bancorp Beneish M-Score Related Terms

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Carver Bancorp (Carver Bancorp) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

39CN:Germany

Address

75 West 125th Street, New York, NY, USA, 10027

Website

https://www.carverbank.com

Carver Bancorp Inc is a holding company and conducts its business as a unitary saving and loan holding firm and the business of the company consists of the operation of its subsidiary. The bank offers a wide range of financial solutions to meet customers' banking. It offers other consumer and commercial banking products and services, such as debit cards, online banking, online bill pay, and telephone banking. The company provides deposit products, such as demand, savings, and time deposits for consumers, businesses, and governmental and quasi-governmental agencies in its market area within New York City.

Executives

Isaac Torres	officer: SVP and GC	75 WEST 125TH STREET, NEW YORK NY 10027
Craig C Mackay	director	75 WEST 125TH STREET, NEW YORK NY 10027
Robin L Nunn	director	75 WEST 125TH STREET, NEW YORK NY 10027
Christina L Maier	officer: CFO	C/O PATRIOT NATIONAL BANCORP, INC., 900 BEDFORD STREET, STAMFORD CT 06901
Sophia Haliotis	officer: SVP and CCO	75 WEST 125TH STREET, NEW YORK NY 10027
Michael T. Pugh	officer: President & COO	CARVER BANCORP, INC., 75 WEST 125TH STREET, NEW YORK NY 10027
Jones Lewis P. Iii	director	75 WEST 125TH STREET, NEW YORK NY 10027
Steven Bussey	director	75 WEST 125TH STREET, NEW YORK NY 10027
Jillian E Joseph	director	75 WEST 125TH STREET, NEW YORK NY 10027
Robert W Mooney	director	75 WEST 125TH STREET, NEW YORK NY 10027
Thomas K Ritter	director	120 CAMBRIDGE AVENUE, LINWOOD NJ 08221
Deborah C Wright	director, officer: President & CEO	CARVER BANCORP, INC, 75 W. 125TH STREET, NEW YORK NY 10027
Ingrid Lamae Dejongh	director	75 W. 125TH STREET, NEW YORK NY 10027
Grannum Colvin	director	75 WEST 125TH STREET, NEW YORK NY 10027
Kenneth Knuckles	director	75 WEST 125TH STREET, NEW YORK NY 10027