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First Capital Bancorp Inc (NAS:FCVA)
Beneish M-Score
-2.41 (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.

First Capital Bancorp Inc has a M-score of -2.41 suggests that the company is not a manipulator.

FCVA' s Beneish M-Score Range Over the Past 10 Years
Min: 0   Max: 0
Current: -2.41

During the past 13 years, the highest Beneish M-Score of First Capital Bancorp Inc was 0.00. The lowest was 0.00. And the median was 0.00.


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 First Capital 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 * 0.9837+0.528 * 1+0.404 * 0.9987+0.892 * 1.0613+0.115 * 0.8547
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8881+4.679 * -0.0058-0.327 * 0.8398
=-2.41

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1.85 Mil.
Revenue was 5.835 + 5.527 + 5.512 + 5.479 = $22.35 Mil.
Gross Profit was 5.835 + 5.527 + 5.512 + 5.479 = $22.35 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $623.25 Mil.
Property, Plant and Equipment(Net PPE) was $11.94 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.76 Mil.
Selling, General & Admin. Expense(SGA) was $10.37 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $44.99 Mil.
Net Income was 1.279 + 1.167 + 1.064 + 1.251 = $4.76 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 3.025 + 1.224 + 0.02 + 4.083 = $8.35 Mil.
Accounts Receivable was $1.77 Mil.
Revenue was 5.368 + 5.247 + 5.093 + 5.353 = $21.06 Mil.
Gross Profit was 5.368 + 5.247 + 5.093 + 5.353 = $21.06 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $600.16 Mil.
Property, Plant and Equipment(Net PPE) was $10.70 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.58 Mil.
Selling, General & Admin. Expense(SGA) was $11.00 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $51.58 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)
=(1.849 / 22.353) / (1.771 / 21.061)
=0.0827182 / 0.08408907
=0.9837

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)
=(5.527 / 21.061) / (5.835 / 22.353)
=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 + 11.935) / 623.253) / (1 - (0 + 10.7) / 600.158)
=0.98085047 / 0.98217136
=0.9987

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
=22.353 / 21.061
=1.0613

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))
=(0.58 / (0.58 + 10.7)) / (0.764 / (0.764 + 11.935))
=0.05141844 / 0.06016222
=0.8547

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)
=(10.365 / 22.353) / (10.997 / 21.061)
=0.46369615 / 0.52214995
=0.8881

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)
=((44.987 + 0) / 623.253) / ((51.583 + 0) / 600.158)
=0.07218096 / 0.08594903
=0.8398

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
=(4.761 - 0 - 8.352) / 623.253
=-0.0058

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.

First Capital Bancorp Inc has a M-score of -2.41 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.

First Capital Bancorp Inc Annual Data

Dec04Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 7.99590.25430.96180.89751.12320.69480.78431.05280.84730.9805
GMI 1111111111
AQI 0.99741.01521.00240.98911.00340.9921.00051.00071.00110.9999
SGI 0.57481.30431.31911.11231.1311.29431.04431.01631.1111.0409
DEPI 1.11310.63461.01282.86030.89111.34880.81160.94141.02921.0436
SGAI 0.97330.77321.36541.03651.09020.89041.02191.12931.02160.9371
LVGI 1.92181.5770.92780.98830.81361.07610.90990.56131.14511.3934
TATA -0.1069-0.0016-0.0038-0.00370.0013-0.0149-0.015-0.0054-0.0238-0.0069
M-score 2.79-3.09-2.29-2.28-2.21-2.54-2.70-2.33-2.68-2.61

First Capital Bancorp Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.91170.8540.84740.88090.91590.96840.98050.97230.97420.9837
GMI 1111111111
AQI 1.00161.00131.00111.00231.00121.00190.99990.99920.99940.9987
SGI 1.12071.10021.11081.09061.05151.05961.04091.04861.05761.0613
DEPI 0.97030.99511.02921.04371.09321.03771.04360.95530.86960.8547
SGAI 0.98431.03621.02171.03831.05851.03580.93720.89130.88740.8881
LVGI 0.96581.13991.14511.55571.69921.24151.39340.8990.87970.8398
TATA -0.0054-0.0199-0.0238-0.0184-0.0081-0.0045-0.0069-0.0047-0.0047-0.0058
M-score -2.47-2.67-2.68-2.78-2.78-2.56-2.61-2.44-2.43-2.41
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