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Hamilton Bancorp Inc (NAS:HBK)
Beneish M-Score
-2.10 (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.

Hamilton Bancorp Inc has a M-score of -2.10 signals that the company is a manipulator.

HBK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.35   Max: -2.1
Current: -2.1

-2.35
-2.1

During the past 5 years, the highest Beneish M-Score of Hamilton Bancorp Inc was -2.10. The lowest was -2.35. And the median was -2.23.


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 Hamilton 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 * 1.6476+0.528 * 1+0.404 * 0.9982+0.892 * 1.2696+0.115 * 1.5987
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9034+4.679 * -0.0009-0.327 * 2.647
=-2.10

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1.62 Mil.
Revenue was 3.366 + 3.068 + 2.958 + 2.376 = $11.77 Mil.
Gross Profit was 3.366 + 3.068 + 2.958 + 2.376 = $11.77 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $522.76 Mil.
Property, Plant and Equipment(Net PPE) was $4.28 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.38 Mil.
Selling, General & Admin. Expense(SGA) was $7.02 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $28.49 Mil.
Net Income was -0.335 + 0.117 + -0.127 + -0.201 = $-0.55 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.964 + 0.547 + -0.639 + 0.988 = $-0.07 Mil.
Accounts Receivable was $0.77 Mil.
Revenue was 2.628 + 2.227 + 2.168 + 2.246 = $9.27 Mil.
Gross Profit was 2.628 + 2.227 + 2.168 + 2.246 = $9.27 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $291.45 Mil.
Property, Plant and Equipment(Net PPE) was $1.87 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.28 Mil.
Selling, General & Admin. Expense(SGA) was $6.12 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $6.00 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)
=(1.617 / 11.768) / (0.773 / 9.269)
=0.13740653 / 0.08339627
=1.6476

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)
=(9.269 / 9.269) / (11.768 / 11.768)
=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 + 4.284) / 522.764) / (1 - (0 + 1.866) / 291.449)
=0.9918051 / 0.99359751
=0.9982

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
=11.768 / 9.269
=1.2696

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))
=(0.281 / (0.281 + 1.866)) / (0.382 / (0.382 + 4.284))
=0.1308803 / 0.08186884
=1.5987

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)
=(7.016 / 11.768) / (6.117 / 9.269)
=0.59619307 / 0.65994174
=0.9034

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)
=((28.487 + 0) / 522.764) / ((6 + 0) / 291.449)
=0.05449304 / 0.02058679
=2.647

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
=(-0.546 - 0 - -0.068) / 522.764
=-0.0009

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.

Hamilton Bancorp Inc has a M-score of -2.10 signals that the company is likely to 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.

Hamilton Bancorp Inc Annual Data

Mar12Mar13Mar14Mar15Mar16
DSRI 1.1268
GMI 1
AQI 0.9977
SGI 1.2494
DEPI 1.4471
SGAI 0.81
LVGI 1.8277
TATA -0.0038
M-score -2.35

Hamilton Bancorp Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.12681.6476
GMI 11
AQI 0.99770.9982
SGI 1.24941.2696
DEPI 1.44271.5987
SGAI 0.80970.9034
LVGI 1.82772.647
TATA -0.0038-0.0009
M-score -2.35-2.10
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