Mid-Southern Bancorp (Mid-Southern Bancorp) Beneish M-Score : -2.49 (As of Apr. 28, 2024)

View and export this data going back to 1998. Start your Free Trial

What is Mid-Southern 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 -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MSVB' s Beneish M-Score Range Over the Past 10 Years
Min: -9.05 Med: -2.59 Max: -2.33
Current: -2.49

During the past 10 years, the highest Beneish M-Score of Mid-Southern Bancorp was -2.33. The lowest was -9.05. And the median was -2.59.

Mid-Southern 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 Mid-Southern 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 * 0.9699

0.528 * 1

0.404 * 1.0693

0.892 * 1.043

0.115 * 0.8943

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9636

4.679 * -0.004056

0.327 * 1.0838

-2.49

* 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 (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was $1.22 Mil.
Revenue was 2.225 + 2.104 + 2.253 + 2.295 = $8.88 Mil.
Gross Profit was 2.225 + 2.104 + 2.253 + 2.295 = $8.88 Mil.
Total Current Assets was $106.22 Mil.
Total Assets was $266.27 Mil.
Property, Plant and Equipment(Net PPE) was $2.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.20 Mil.
Selling, General, & Admin. Expense(SGA) was $4.37 Mil.
Total Current Liabilities was $1.07 Mil.
Long-Term Debt & Capital Lease Obligation was $28.20 Mil.
Net Income was 0.4 + 0.34 + 0.376 + 0.512 = $1.63 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.675 + 0.795 + 0.421 + 0.817 = $2.71 Mil.

Total Receivables was $1.20 Mil.
Revenue was 2.344 + 2.018 + 2.109 + 2.04 = $8.51 Mil.
Gross Profit was 2.344 + 2.018 + 2.109 + 2.04 = $8.51 Mil.
Total Current Assets was $116.56 Mil.
Total Assets was $266.45 Mil.
Property, Plant and Equipment(Net PPE) was $2.11 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.17 Mil.
Selling, General, & Admin. Expense(SGA) was $4.35 Mil.
Total Current Liabilities was $1.03 Mil.
Long-Term Debt & Capital Lease Obligation was $26.00 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)
	=	(1.215 / 8.877)	/	(1.201 / 8.511)
	=	0.136871	/	0.141112
	=	0.9699

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)
	=	(8.511 / 8.511)	/	(8.877 / 8.877)
	=	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 - (106.224 + 2.128) / 266.266)	/	(1 - (116.564 + 2.11) / 266.454)
	=	0.593069	/	0.554617
	=	1.0693

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
	=	8.877	/	8.511
	=	1.043

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))
	=	(0.173 / (0.173 + 2.11))	/	(0.197 / (0.197 + 2.128))
	=	0.075777	/	0.084731
	=	0.8943

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)
	=	(4.374 / 8.877)	/	(4.352 / 8.511)
	=	0.492734	/	0.511338
	=	0.9636

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)
	=	((28.2 + 1.069) / 266.266)	/	((26 + 1.025) / 266.454)
	=	0.109924	/	0.101425
	=	1.0838

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
	=	(1.628 - 0	-	2.708)	/	266.266
	=	-0.004056

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.

Mid-Southern Bancorp has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.

Mid-Southern Bancorp Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Mid-Southern Bancorp's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Mid-Southern Bancorp (Mid-Southern Bancorp) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

N/A

Address

300 North Water Street, Salem, IN, USA, 47167

Website

https://www.mid-southern.com

Mid-Southern Bancorp Inc is a United States-based savings and loan holding company of Mid-Southern Savings Bank. It is engaged in providing a variety of banking services to individuals and business customers. The bank offers personal banking and business banking services. Its services portfolio comprises checking, savings, card services, and loan products. It also offers online and mobile banking facilities. The company derives revenue from interest on loans and, to a lesser extent, interest on investment securities and mortgage-backed securities.

Executives

Eric A. Koch	director	300 N. WATER STREET, SALEM IN 47167
James O. King	officer: EVP and Senior Loan Officer	300 N. WATER ST., SALEM IN 47167
Robert W. Derossett	officer: Chief Financial Officer	300 NORTH WATER STREET, SALEM IN 47167
Alexander G. Babey	director, officer: President and CEO	300 NORTH WATER STREET, SALEM IN 47167
Charles W. Lamb	director	300 NORTH WATER STREET, SALEM IN 47167
Erica B. Schmidt	officer: Executive VP and CFO	300 NORTH WATER STREET, SALEM IN 47167
Trent L. Fisher	director	300 NORTH WATER STREET, SALEM IN 47167
Frank M. Benson	officer: Executive VP, SLO	300 NORTH WATER STREET, SALEM IN 47167
Larry R. Bailey	director	300 NORTH WATER STREET, SALEM IN 47167
Brent A. Rosenbaum	director	300 NORTH WATER STREET, SALEM IN 47167
Dana J. Dunbar	director, other: Chairman of the Board	300 NORTH WATER STREET, SALEM IN 47167
Kermit A. Lamb	director	300 NORTH WATER STREET, SALEM IN 47167
Paul G. Allemeier	director	300 NORTH WATER STREET, SALEM IN 47167