NewBridge 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 NewBridge Bancorp 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 | + | 0.528 * 1 | + | 0.404 * 1.0039 | + | 0.892 * 1.1688 | + | 0.115 * 1.3423 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9207 | + | 4.679 * -0.000647 | - | 0.327 * 1.1537 |
| = | -2.33 |
* 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 (Sep15) TTM: | Last Year (Sep14) TTM: |
Total Receivables was $0.0 Mil.
Revenue was 27.222 + 27.667 + 26.072 + 25.381 = $106.3 Mil.
Gross Profit was 27.222 + 27.667 + 26.072 + 25.381 = $106.3 Mil.
Total Current Assets was $41.9 Mil.
Total Assets was $2,772.4 Mil.
Property, Plant and Equipment(Net PPE) was $44.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.9 Mil.
Selling, General, & Admin. Expense(SGA) was $55.4 Mil.
Total Current Liabilities was $18.3 Mil.
Long-Term Debt & Capital Lease Obligation was $491.3 Mil.
Net Income was 5.572 + 6.001 + 3.77 + 4.265 = $19.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 11.451 + 4.715 + 1.031 + 4.204 = $21.4 Mil.
|
Total Receivables was $0.0 Mil.
Revenue was 24.58 + 24.461 + 20.962 + 20.982 = $91.0 Mil.
Gross Profit was 24.58 + 24.461 + 20.962 + 20.982 = $91.0 Mil.
Total Current Assets was $39.8 Mil.
Total Assets was $2,442.8 Mil.
Property, Plant and Equipment(Net PPE) was $45.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.6 Mil.
Selling, General, & Admin. Expense(SGA) was $51.5 Mil.
Total Current Liabilities was $15.2 Mil.
Long-Term Debt & Capital Lease Obligation was $374.0 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) |
| = | (0 / 106.342) | / | (0 / 90.985) |
| = | 0 | / | 0 |
| | = | 1 |
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) |
| = | (90.985 / 90.985) | / | (106.342 / 106.342) |
| = | 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 - (41.87 + 44.241) / 2772.444) | / | (1 - (39.757 + 45.259) / 2442.75) |
| = | 0.96894 | / | 0.965197 |
| | = | 1.0039 |
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 |
| = | 106.342 | / | 90.985 |
| | = | 1.1688 |
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)) |
| = | (5.566 / (5.566 + 45.259)) | / | (3.93 / (3.93 + 44.241)) |
| = | 0.109513 | / | 0.081584 |
| | = | 1.3423 |
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) |
| = | (55.372 / 106.342) | / | (51.458 / 90.985) |
| = | 0.520697 | / | 0.565566 |
| | = | 0.9207 |
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) |
| = | ((491.274 + 18.347) / 2772.444) | / | ((373.974 + 15.211) / 2442.75) |
| = | 0.183817 | / | 0.159322 |
| | = | 1.1537 |
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 |
| = | (19.608 - 0 | - | 21.401) | / | 2772.444 |
| | = | -0.000647 |
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.
NewBridge Bancorp has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.
NewBridge Bancorp (NewBridge Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
NewBridge Bancorp was incorporated in the State of North Carolina on December 6, 1982. The Company is a bank holding company. The Company through its banking subsidiary provides banking products to small to medium-sized businesses and retail clients in its market areas, including interest-bearing and noninterest-bearing demand deposit accounts, certificates of deposits, individual retirement accounts, overdraft protection, personal and corporate trust services, safe deposit boxes, online banking, corporate cash management, brokerage, financial planning and asset management, and secured and unsecured loans. The Company also offers lending services, including construction, real estate, and commercial and consumer loans, to small to medium-sized businesses, middle market businesses, real estate developers and retail clients that are located in or conduct a substantial portion of their business in the market areas. It maintains operations facilities in Lexington and Reidsville, NC. It operated approximately 40 branch offices in its four markets including Charlotte, Raleigh, the Cape Fear Region and the Piedmont Triad Region and eight loan production offices. The Bank focuses its marketing efforts on small to medium-sized businesses, professionals and retail clients, and on achieving certain strategic objectives, including increasing noninterest income and growing core deposits and loans. The Bank promotes its brand through its association with the Greensboro minor league baseball team and ballpark (NewBridge Bank Park), traditional advertising and promotions, sponsorship of local events and other community-focused campaigns. The Bank also invests in bank-hosted events and client hospitality opportunities that foster relationship building and business development. The Company's clients are located in Brunswick, Davidson, Forsyth, Guilford, Mecklenburg, New Hanover, Pender, Rockingham, Sampson, Stokes and Wake Counties. It faces competition from a number of sources, including commercial banks, thrift institutions, credit unions and other financial institutions and financial intermediaries. The Company is subject to examination by the FDIC and the Commissioner. In addition, it is subject to various other state and federal laws and regulations, including state usury laws, laws relating to fiduciaries, consumer credit, equal credit and fair credit reporting laws and laws relating to branch banking.
Executives
| Ramsey K Hamadi |
officer: SEVP and CFO |
C/O AMERICAN NATIONAL BANK & TRUST CO., 628 MAIN STREET, DANVILLE VA 24541 |
| G Alfred Webster |
director |
P. O. BOX 2037, REIDSVILLE NC 27323 |
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