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FedFirst Financial Corp (NAS:FFCO)
Beneish M-Score
0.00 (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.

FedFirst Financial Corp has a M-score of -2.65 suggests that the company is not a manipulator.

During the past 11 years, the highest Beneish M-Score of FedFirst Financial Corp 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 FedFirst Financial Corp 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 * 0.9805+0.528 * 1+0.404 * 1.001+0.892 * 1.0068+0.115 * 0.6244
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0293+4.679 * -0.0062-0.327 * 1.2479
=-2.65

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $1.01 Mil.
Revenue was 3.885 + 3.629 + 3.554 + 3.505 = $14.57 Mil.
Gross Profit was 3.885 + 3.629 + 3.554 + 3.505 = $14.57 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $330.96 Mil.
Property, Plant and Equipment(Net PPE) was $1.47 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.66 Mil.
Selling, General & Admin. Expense(SGA) was $7.48 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $45.82 Mil.
Net Income was -0.276 + 0.534 + 0.402 + 0.463 = $1.12 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.785 + 0.523 + 1.004 + 0.859 = $3.17 Mil.
Accounts Receivable was $1.02 Mil.
Revenue was 3.685 + 3.799 + 3.511 + 3.479 = $14.47 Mil.
Gross Profit was 3.685 + 3.799 + 3.511 + 3.479 = $14.47 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $314.37 Mil.
Property, Plant and Equipment(Net PPE) was $1.71 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.41 Mil.
Selling, General & Admin. Expense(SGA) was $7.21 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $34.88 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)
=(1.006 / 14.573) / (1.019 / 14.474)
=0.06903177 / 0.0704021
=0.9805

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)
=(3.629 / 14.474) / (3.885 / 14.573)
=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 + 1.47) / 330.955) / (1 - (0 + 1.705) / 314.37)
=0.99555831 / 0.99457645
=1.001

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
=14.573 / 14.474
=1.0068

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))
=(0.409 / (0.409 + 1.705)) / (0.66 / (0.66 + 1.47))
=0.19347209 / 0.30985915
=0.6244

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)
=(7.475 / 14.573) / (7.213 / 14.474)
=0.51293488 / 0.49834185
=1.0293

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)
=((45.818 + 0) / 330.955) / ((34.877 + 0) / 314.37)
=0.13844178 / 0.11094252
=1.2479

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
=(1.123 - 0 - 3.171) / 330.955
=-0.0062

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.

FedFirst Financial Corp has a M-score of -2.65 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.

FedFirst Financial Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.77311.17011.15441.08780.52130.8840.81770.84130.9099
GMI 111111111
AQI 1.00030.99990.99791.00191.0011.00021.00021.00080.9998
SGI 1.3380.98230.87980.93921.80670.99241.11460.98891.0545
DEPI 1.46551.72570.95320.80680.72560.98810.92531.10911.3038
SGAI 1.07670.84991.34431.14550.61541.02611.05510.83441.0451
LVGI 0.90780.84971.05091.14750.84180.70080.65591.03880.9358
TATA -0.0045-0.0028-0.1439-0.0126-0.0041-0.0077-0.01290.0044-0.0097
M-score -2.34-2.19-3.20-2.61-2.13-2.54-2.51-2.59-2.51

FedFirst Financial Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.8110.79960.79370.84050.83330.86520.87350.90990.95090.9805
GMI 1111111111
AQI 1.00071.00071.00041.00081.00051.00061.00090.999811.001
SGI 1.11171.0941.08070.98991.01811.04131.03971.05451.01431.0068
DEPI 0.91791.43842.50871.10911.80250.86680.61231.30380.87010.6244
SGAI 1.01140.99050.97940.83360.86320.8950.9281.05111.05981.0293
LVGI 0.7890.82170.79531.03880.88070.81911.12030.93580.93491.2479
TATA -0.0106-0.0086-0.00770.00440.0037-0.00040-0.0097-0.0079-0.0062
M-score -2.55-2.51-2.39-2.59-2.44-2.51-2.63-2.51-2.55-2.65
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