Kentucky First Federal Bancorp (Kentucky First Federal Bancorp) Beneish M-Score : -2.09 (As of Apr. 28, 2024)

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What is Kentucky First Federal Bancorp Beneish M-Score?

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 -2.09 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KFFB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97 Med: -2.53 Max: -2.09
Current: -2.09

During the past 13 years, the highest Beneish M-Score of Kentucky First Federal Bancorp was -2.09. The lowest was -2.97. And the median was -2.53.

Kentucky First Federal 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 Kentucky First Federal 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 * 1.6226

0.528 * 1

0.404 * 0.9943

0.892 * 0.7909

0.115 * 1.1256

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3231

4.679 * 0.001073

0.327 * 0.886

-2.09

* 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 $1.08 Mil.
Revenue was 1.703 + 1.744 + 1.997 + 2.114 = $7.56 Mil.
Gross Profit was 1.703 + 1.744 + 1.997 + 2.114 = $7.56 Mil.
Total Current Assets was $25.90 Mil.
Total Assets was $366.25 Mil.
Property, Plant and Equipment(Net PPE) was $4.36 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.24 Mil.
Selling, General, & Admin. Expense(SGA) was $5.32 Mil.
Total Current Liabilities was $0.17 Mil.
Long-Term Debt & Capital Lease Obligation was $71.01 Mil.
Net Income was -0.361 + -0.175 + 0.042 + 0.144 = $-0.35 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.522 + -0.57 + 0.15 + 0.199 = $-0.74 Mil.

Total Receivables was $0.84 Mil.
Revenue was 2.517 + 2.53 + 2.277 + 2.232 = $9.56 Mil.
Gross Profit was 2.517 + 2.53 + 2.277 + 2.232 = $9.56 Mil.
Total Current Assets was $21.39 Mil.
Total Assets was $335.38 Mil.
Property, Plant and Equipment(Net PPE) was $4.55 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.29 Mil.
Selling, General, & Admin. Expense(SGA) was $5.08 Mil.
Total Current Liabilities was $0.33 Mil.
Long-Term Debt & Capital Lease Obligation was $73.23 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)
	=	(1.078 / 7.558)	/	(0.84 / 9.556)
	=	0.14263	/	0.087903
	=	1.6226

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)
	=	(9.556 / 9.556)	/	(7.558 / 7.558)
	=	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 - (25.896 + 4.361) / 366.247)	/	(1 - (21.385 + 4.547) / 335.377)
	=	0.917386	/	0.922678
	=	0.9943

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
	=	7.558	/	9.556
	=	0.7909

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))
	=	(0.286 / (0.286 + 4.547))	/	(0.242 / (0.242 + 4.361))
	=	0.059176	/	0.052574
	=	1.1256

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)
	=	(5.319 / 7.558)	/	(5.083 / 9.556)
	=	0.703758	/	0.531917
	=	1.3231

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)
	=	((71.008 + 0.167) / 366.247)	/	((73.228 + 0.333) / 335.377)
	=	0.194336	/	0.219338
	=	0.886

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
	=	(-0.35 - 0	-	-0.743)	/	366.247
	=	0.001073

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.

Kentucky First Federal Bancorp has a M-score of -2.09 suggests that the company is unlikely to be a manipulator.

Kentucky First Federal Bancorp Beneish M-Score Related Terms

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Kentucky First Federal Bancorp (Kentucky First Federal Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Kentucky First Federal Bancorp (NAS:KFFB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

216 West Main Street, P.O. Box 535, Frankfort, KY, USA, 40602

Website

https://www.ffsbky.bank

Kentucky First Federal Bancorp is a holding company. The company through its subsidiaries is engaged mainly in the business of accepting deposits from the general public and using such funds to originate loans secured by first mortgages on owner-occupied, residential real estate and other loans secured by real estate. Its primary products and services include Residential mortgage loans, Multi-family loans, Construction loans and types of deposits, etc. The company mainly operates in Perry, Franklin, Boyle and Garrard and surrounding counties in Kentucky, US.

Executives

Ecton Walter G Jr	director	479 MAIN STREET, HAZARD KY 41702
Teresa K Hulette	officer: EVP-First Federal of Frankfort	P.O. BOX 535, FRANKFORT KY 40602
R Clay Hulette	officer: V.P., CFO & Treasurer	216 WEST MAIN STREET, P.O. BOX 535, FRANKFORT KY 40602
C Michael Davenport	director	216 WEST MAIN STREET, P.O. BOX 535, FRANKFORT KY 40602
Don D Jennings	director, officer: President & COO	C/O FIRST FEDERAL, P O BOX 535, FRANKFORT KY 40602
Tony D Whitaker	director, 10 percent owner, officer: CEO & Chairman of the Board	479 MAIN STREET, HAZARD KY 41702
Jaime Steele Coffey	officer: President & CEO--First Federal, other: President of First Federal MHC	C/O KENTUCKY FIRST FEDERAL BANCORP, 655 MAIN STREET, HAZARD KY 41702
Lou Ella Farler	officer: Pres. & CEO-FFS&L of Hazard	P.O. BOX 535, FRANKFORT KY 40602
William H Johnson	director, officer: Area Pres.-FFSB of Kentucky	340 WEST MAIN STREET, DANVILLE KY 40422
Hudson W Banks Iii	director	340 WEST MAIN STREET, DANVILLE KY 40422
Gorman William D Jr	director	479 MAIN STREET, HAZARD KY 41702
Federal Mhc First	10 percent owner	479 MAIN STREET, HAZARD KY 41702
William D Gorman	director	479 MAIN STREET, HAZARD KY 41702
Pulliam Roy L Jr	officer: Vice President & Secretary	479 MAIN STREET, HAZARD KY 41702
Regan Herman D Jr	director	216 WEST MAIN STREET, P.O. BOX 535, FRANKFORT KY 40602