Royal Bancshares of Pennsylvania (Royal Bancshares of Pennsylvania) Beneish M-Score : 0.00 (As of May. 12, 2024)

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What is Royal Bancshares of Pennsylvania 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.

The historical rank and industry rank for Royal Bancshares of Pennsylvania's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Royal Bancshares of Pennsylvania was 0.00. The lowest was 0.00. And the median was 0.00.

Royal Bancshares of Pennsylvania 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 Royal Bancshares of Pennsylvania 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 * 0.7693

0.528 * 1

0.404 * 0.9999

0.892 * 1.0258

0.115 * 0.8884

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9616

4.679 * 0.002644

0.327 * 0.7758

-2.59

* 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 (Sep17) TTM:

Last Year (Sep16) TTM:

Total Receivables was $2.98 Mil.
Revenue was 7.478 + 8.443 + 7.528 + 7.473 = $30.92 Mil.
Gross Profit was 7.478 + 8.443 + 7.528 + 7.473 = $30.92 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $809.83 Mil.
Property, Plant and Equipment(Net PPE) was $4.75 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.66 Mil.
Selling, General, & Admin. Expense(SGA) was $13.25 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $85.77 Mil.
Net Income was 2.275 + 3.007 + 1.812 + 4.122 = $11.22 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 3.715 + 5.165 + 0.609 + -0.414 = $9.08 Mil.

Total Receivables was $3.77 Mil.
Revenue was 7.747 + 7.49 + 7.698 + 7.21 = $30.15 Mil.
Gross Profit was 7.747 + 7.49 + 7.698 + 7.21 = $30.15 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $811.37 Mil.
Property, Plant and Equipment(Net PPE) was $4.71 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.57 Mil.
Selling, General, & Admin. Expense(SGA) was $13.43 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $110.77 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)
	=	(2.975 / 30.922)	/	(3.77 / 30.145)
	=	0.09621	/	0.125062
	=	0.7693

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)
	=	(30.145 / 30.145)	/	(30.922 / 30.922)
	=	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 - (0 + 4.748) / 809.834)	/	(1 - (0 + 4.714) / 811.368)
	=	0.994137	/	0.99419
	=	0.9999

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
	=	30.922	/	30.145
	=	1.0258

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))
	=	(0.569 / (0.569 + 4.714))	/	(0.655 / (0.655 + 4.748))
	=	0.107704	/	0.121229
	=	0.8884

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)
	=	(13.251 / 30.922)	/	(13.434 / 30.145)
	=	0.42853	/	0.445646
	=	0.9616

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)
	=	((85.774 + 0) / 809.834)	/	((110.774 + 0) / 811.368)
	=	0.105916	/	0.136527
	=	0.7758

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
	=	(11.216 - 0	-	9.075)	/	809.834
	=	0.002644

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.

Royal Bancshares of Pennsylvania has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.

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Royal Bancshares of Pennsylvania (Royal Bancshares of Pennsylvania) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Royal Bancshares of Pennsylvania Inc (NAS:RBPAA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.royalbankamerica.com

Royal Bancshares of Pennsylvania Inc is a bank holding company for Royal Bank America. The Bank operates as a commercial bank, and offers checking accounts, savings and time deposits, and loans, including residential mortgages, home equity and SBA loans.

Executives

F Kevin Tylus	director, officer: President & CEO	2465 KUSER ROAD HAMILTON NJ 08690
Gerard M Thomchick	director	22 N 6TH ST, INDIANA PA 15701
Lars B Eller	officer: EVP CHIEF RETAIL BANKING OFF.	214 CALEB STREET, WEST CHESTER PA 19382
Jay H Shah	director	44 HERSHA DRIVE, HARRISBURG PA 17102
Smith Douglas J R	other: CHIEF CREDIT OFFICER, EVP	713 RODMAN STREET PHILADELPHIA PA 19147
Jeffrey Hanuscin	other: Sr. Vice President, Treasurer	1834 OREGON AVENUE PHILADELPHIA PA 19145