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Midsouth Bancorp Inc (NYSE:MSL)
Beneish M-Score
-2.42 (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.

Midsouth Bancorp Inc has a M-score of -2.42 suggests that the company is not a manipulator.

MSL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.58   Max: -0.73
Current: -2.42

-3.58
-0.73

During the past 13 years, the highest Beneish M-Score of Midsouth Bancorp Inc was -0.73. The lowest was -3.58. And the median was -2.39.


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 Midsouth 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 * 1.0259+0.528 * 1+0.404 * 0.9992+0.892 * 0.973+0.115 * 0.9859
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0129+4.679 * -0.008-0.327 * 0.6801
=-2.42

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $6.73 Mil.
Revenue was 22.871 + 22.885 + 23.981 + 25.547 = $95.28 Mil.
Gross Profit was 22.871 + 22.885 + 23.981 + 25.547 = $95.28 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,916.55 Mil.
Property, Plant and Equipment(Net PPE) was $68.48 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.13 Mil.
Selling, General & Admin. Expense(SGA) was $36.81 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $47.91 Mil.
Net Income was 2.349 + 1.838 + 2.589 + 5.099 = $11.88 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 7.052 + 5.591 + 10.689 + 3.844 = $27.18 Mil.
Accounts Receivable was $6.74 Mil.
Revenue was 24.098 + 23.748 + 25.706 + 24.374 = $97.93 Mil.
Gross Profit was 24.098 + 23.748 + 25.706 + 24.374 = $97.93 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,995.26 Mil.
Property, Plant and Equipment(Net PPE) was $69.76 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.14 Mil.
Selling, General & Admin. Expense(SGA) was $37.35 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $73.34 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)
=(6.729 / 95.284) / (6.741 / 97.926)
=0.07062046 / 0.06883769
=1.0259

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)
=(22.885 / 97.926) / (22.871 / 95.284)
=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 + 68.482) / 1916.551) / (1 - (0 + 69.762) / 1995.258)
=0.9642681 / 0.9650361
=0.9992

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
=95.284 / 97.926
=0.973

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))
=(6.144 / (6.144 + 69.762)) / (6.125 / (6.125 + 68.482))
=0.08094222 / 0.08209685
=0.9859

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)
=(36.809 / 95.284) / (37.348 / 97.926)
=0.3863083 / 0.38139003
=1.0129

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)
=((47.911 + 0) / 1916.551) / ((73.338 + 0) / 1995.258)
=0.02499855 / 0.03675615
=0.6801

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
=(11.875 - 0 - 27.176) / 1916.551
=-0.008

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.

Midsouth Bancorp Inc has a M-score of -2.42 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.

Midsouth Bancorp Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.99460.92450.86930.89190.95011.15580.99150.73070.93211.05
GMI 1111111111
AQI 0.99560.99181.00271.00361.00351.00480.99760.9951.00311.0003
SGI 1.12251.13231.07181.00651.01311.04821.20351.36871.06380.9465
DEPI 1.16661.27421.02660.88041.02811.24561.20770.79030.89620.9732
SGAI 1.05231.07880.981.08950.93741.00660.94831.01730.94411.0062
LVGI 1.18522.06161.80310.67760.89540.18722.85390.97590.81110.9958
TATA -0.005-0.0067-0.008-0.0069-0.0115-0.0063-0.0045-0.0063-0.0055-0.0094
M-score -2.45-2.80-2.83-2.53-2.52-2.03-2.90-2.45-2.45-2.53

Midsouth Bancorp Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.73450.72140.78490.85580.94071.05411.06631.03571.03631.0259
GMI 1111111111
AQI 0.9950.99730.99851.00011.00311.00361.00241.00291.00030.9992
SGI 1.36161.31491.19941.13151.0540.98461.00020.96670.9590.973
DEPI 0.79030.81530.85970.88340.89620.90340.92090.93780.97320.9859
SGAI 1.01830.97950.99850.97330.95281.02741.00231.03251.03471.0129
LVGI 0.97590.96420.66920.57990.81111.22381.52290.94980.99580.6801
TATA -0.0063-0.0069-0.006-0.0059-0.0055-0.0071-0.0063-0.009-0.0094-0.008
M-score -2.45-2.49-2.44-2.39-2.45-2.56-2.63-2.51-2.53-2.42
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