Gouverneur Bancorp (Gouverneur Bancorp) Beneish M-Score

: -3.56 (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 -3.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

GOVB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56 Med: -1.52 Max: -0.92
Current: -3.56

During the past 12 years, the highest Beneish M-Score of Gouverneur Bancorp was -0.92. The lowest was -3.56. And the median was -1.52.

Gouverneur 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 Gouverneur 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

0.528 * 1

0.404 * 1.0732

0.892 * 1.2724

0.115 * 0.3164

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2881

4.679 * -0.00142

0.327 * 1.9117

-3.56

* 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 (Sep22) TTM:

Total Receivables was $0.00 Mil.
Revenue was 1.939 + 1.988 + 2.113 + 1.766 = $7.81 Mil.
Gross Profit was 1.939 + 1.988 + 2.113 + 1.766 = $7.81 Mil.
Total Current Assets was $57.97 Mil.
Total Assets was $204.95 Mil.
Property, Plant and Equipment(Net PPE) was $3.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.64 Mil.
Selling, General, & Admin. Expense(SGA) was $3.73 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $7.00 Mil.
Net Income was 0.118 + 0.085 + 0.232 + 0.046 = $0.48 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -3.517 + 4.329 + 0 + -0.04 = $0.77 Mil.

Total Receivables was $5.74 Mil.
Revenue was 2.053 + 1.627 + 1.228 + 1.227 = $6.14 Mil.
Gross Profit was 2.053 + 1.627 + 1.228 + 1.227 = $6.14 Mil.
Total Current Assets was $70.44 Mil.
Total Assets was $213.02 Mil.
Property, Plant and Equipment(Net PPE) was $3.16 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.19 Mil.
Selling, General, & Admin. Expense(SGA) was $2.27 Mil.
Total Current Liabilities was $3.81 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 / 7.806)	/	(5.736 / 6.135)
	=	0	/	0.934963
	=	0

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)
	=	(6.135 / 6.135)	/	(7.806 / 7.806)
	=	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 - (57.972 + 3.016) / 204.945)	/	(1 - (70.443 + 3.155) / 213.019)
	=	0.702418	/	0.6545
	=	1.0732

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
	=	7.806	/	6.135
	=	1.2724

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))
	=	(0.186 / (0.186 + 3.155))	/	(0.644 / (0.644 + 3.016))
	=	0.055672	/	0.175956
	=	0.3164

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)
	=	(3.727 / 7.806)	/	(2.274 / 6.135)
	=	0.477453	/	0.37066
	=	1.2881

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)
	=	((7 + 0) / 204.945)	/	((0 + 3.806) / 213.019)
	=	0.034156	/	0.017867
	=	1.9117

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
	=	(0.481 - 0	-	0.772)	/	204.945
	=	-0.00142

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.

Gouverneur Bancorp has a M-score of -3.56 suggests that the company is unlikely to be a manipulator.

Gouverneur Bancorp Beneish M-Score Related Terms

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Gouverneur Bancorp (Gouverneur Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Gouverneur Bancorp Inc (OTCPK:GOVB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

42 Church Street, Gouverneur, NY, USA, 13642

Website

https://www.gouverneurbank.com

Gouverneur Bancorp Inc principal activities are to accept deposits from the public and utilize those funds in loans, debt obligations which are issued by the United States government and its agencies and mortgage-backed securities. The group serves individuals and businesses in St. Lawrence, Jefferson, and Lewis Counties in New York State. The company operates through its subsidiary Gouverneur Savings and Loan Association. The bank offers commercial, non-mortgage loans to local businesses for working capital, machinery and equipment purchases, expansion and other business purposes.

Executives

Timothy J Monroe	director	42 CHURCH STREET, PO BOX 297, GOVENEUR NY 13642-0297
Henry J Leader	director	42 CHURCH STREET, PO BOX 297, GOUVERNEUR NY 13642
David Claren Mcclure	director	C/O GOUVERNEUR BANCORP, INC., 42 CHURCH STREET, GOUVERNEUR DC 13642
Clara Pistolesi Cummings	director	C/O GOUVERNEUR BANCORP, INC., 42 CHURCH STREET, GOUVERNEUR DC 13642
Chad Brian Soper	director	C/O GOUVERNEUR BANCORP, INC., 42 CHURCH STREET, GOUVERNEUR DC 13642
Amy Marie Rapholz	director	C/O GOUVERNEUR BANCORP, INC., 42 CHURCH STREET, GOUVERNEUR DC 13642
John Neil Mason	director	C/O GOUVERNEUR BANCORP, INC., 42 CHURCH STREET, GOUVERNEUR NY 13642
Kimberly Ann Adams	officer: VP and CFO	C/O GOUVERNEUR BANCORP, INC., 42 CHURCH STREET, GOUVERNEUR NY 13642
Taylor James Robbins	officer: Executive Vice President	C/O GOUVERNEUR BANCORP, INC., 42 CHURCH STREET, GOUVERNEUR NY 13642
Sadie May Hall	officer: VP & Compliance Officer	C/O GOUVERNEUR BANCORP, INC., 42 CHURCH STREET, GOUVERNEUR NY 13642
Van Vleet Charles C Jr	director, officer: President & CEO	C/O GOUVERNEUR SAVINGS LOAN ASSOC, 42 CHURCH ST. BOX 297, GOUVERNEUR NY 13642-0297
Victor Alan James	officer: VP & COO	C/O GOUVERNEUR BANCORP, INC., 42 CHURCH STREET, GOUVERNEUR NY 13642