IF Bancorp (IF Bancorp) Beneish M-Score : -2.20 (As of Apr. 24, 2024)

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IF Bancorp Beneish M-Score Definition

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 -2.2 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

IROQ' s Beneish M-Score Range Over the Past 10 Years
Min: -2.76 Med: -2.41 Max: -2.16
Current: -2.2

During the past 13 years, the highest Beneish M-Score of IF Bancorp was -2.16. The lowest was -2.76. And the median was -2.41.

IF 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 IF 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 * 1.7912

0.528 * 1

0.404 * 1.0464

0.892 * 0.8129

0.115 * 1.1183

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1938

4.679 * -0.001533

0.327 * 1.8349

-2.20

* 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 $3.76 Mil.
Revenue was 5.301 + 5.711 + 5.707 + 5.978 = $22.70 Mil.
Gross Profit was 5.301 + 5.711 + 5.707 + 5.978 = $22.70 Mil.
Total Current Assets was $212.61 Mil.
Total Assets was $910.78 Mil.
Property, Plant and Equipment(Net PPE) was $10.85 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.69 Mil.
Selling, General, & Admin. Expense(SGA) was $13.54 Mil.
Total Current Liabilities was $2.85 Mil.
Long-Term Debt & Capital Lease Obligation was $132.43 Mil.
Net Income was 0.185 + 0.466 + 0.597 + 0.69 = $1.94 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.118 + 1.001 + 1.114 + 1.101 = $3.33 Mil.

Total Receivables was $2.58 Mil.
Revenue was 6.913 + 7.496 + 6.685 + 6.827 = $27.92 Mil.
Gross Profit was 6.913 + 7.496 + 6.685 + 6.827 = $27.92 Mil.
Total Current Assets was $220.37 Mil.
Total Assets was $823.73 Mil.
Property, Plant and Equipment(Net PPE) was $9.30 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.66 Mil.
Selling, General, & Admin. Expense(SGA) was $13.95 Mil.
Total Current Liabilities was $0.68 Mil.
Long-Term Debt & Capital Lease Obligation was $66.00 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)
	=	(3.758 / 22.697)	/	(2.581 / 27.921)
	=	0.165573	/	0.092439
	=	1.7912

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)
	=	(27.921 / 27.921)	/	(22.697 / 22.697)
	=	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 - (212.607 + 10.854) / 910.783)	/	(1 - (220.372 + 9.296) / 823.727)
	=	0.75465	/	0.721184
	=	1.0464

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
	=	22.697	/	27.921
	=	0.8129

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))
	=	(0.661 / (0.661 + 9.296))	/	(0.685 / (0.685 + 10.854))
	=	0.066385	/	0.059364
	=	1.1183

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)
	=	(13.538 / 22.697)	/	(13.95 / 27.921)
	=	0.596466	/	0.499624
	=	1.1938

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)
	=	((132.425 + 2.849) / 910.783)	/	((66 + 0.675) / 823.727)
	=	0.148525	/	0.080943
	=	1.8349

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
	=	(1.938 - 0	-	3.334)	/	910.783
	=	-0.001533

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.

IF Bancorp has a M-score of -2.20 suggests that the company is unlikely to be a manipulator.

IF Bancorp Beneish M-Score Related Terms

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IF Bancorp (IF Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » IF Bancorp Inc (NAS:IROQ) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

201 East Cherry Street, Watseka, IL, USA, 60970

Website

https://www.iroquoisfed.com

IF Bancorp Inc is a holding company. It is mainly engaged in the business of directing, planning, and coordinating the business activities of Iroquois Federal. The company with the association take deposits from the general public and invest those deposits together with funds generated from operations and borrowings in various loans such as multi-family residential and mortgage loans, commercial real estate loans, home equity lines of credit, consumer loans, others, and also a variety of deposit accounts and alternative delivery channels.

Executives

Thomas J Chamberlain	officer: Vice President	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Richard Stenzinger	director	201 E CHERRY STREET, WATSEKA IL 60970
Dennis C Wittenborn	director	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Linda L. Hamilton	officer: EVP and COO	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Terry W Acree	officer: Vice President	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Rodney E Yergler	director	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Frank J Simutis	director	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Wayne A Lehmann	director	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Joseph A Cowan	director	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Hasselbring Walter H Iii	officer: Vice President and COO	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Alan D Martin	director, officer: President and CEO	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Gary Martin	director	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Pamela J Verkler	officer: VP, CFO and Treasurer	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
Ardith Heuton	director	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970
John D Martin	director	C/O IF BANCORP, INC., 201 EAST CHERRY STREET, WATSEKA IL 60970