Athens Bancshares (Athens Bancshares) Beneish M-Score : 0.00 (As of May. 06, 2024)

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What is Athens Bancshares 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 Athens Bancshares's Beneish M-Score or its related term are showing as below:

During the past 10 years, the highest Beneish M-Score of Athens Bancshares was 0.00. The lowest was 0.00. And the median was 0.00.

Athens Bancshares 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 Athens Bancshares 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 * 1.0712

0.528 * 1

0.404 * 1.0305

0.892 * 1.127

0.115 * 0.7485

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9418

4.679 * -0.003809

0.327 * 0.7565

-2.25

* 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 $1.22 Mil.
Revenue was 5.699 + 5.458 + 5.659 + 5.708 = $22.52 Mil.
Gross Profit was 5.699 + 5.458 + 5.659 + 5.708 = $22.52 Mil.
Total Current Assets was $46.87 Mil.
Total Assets was $464.39 Mil.
Property, Plant and Equipment(Net PPE) was $7.19 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.75 Mil.
Selling, General, & Admin. Expense(SGA) was $10.84 Mil.
Total Current Liabilities was $5.65 Mil.
Long-Term Debt & Capital Lease Obligation was $5.00 Mil.
Net Income was 1.133 + 0.964 + 1.041 + 0.796 = $3.93 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.676 + 2.038 + 0.387 + 2.602 = $5.70 Mil.

Total Receivables was $1.01 Mil.
Revenue was 5.381 + 5.202 + 4.71 + 4.692 = $19.99 Mil.
Gross Profit was 5.381 + 5.202 + 4.71 + 4.692 = $19.99 Mil.
Total Current Assets was $53.18 Mil.
Total Assets was $426.26 Mil.
Property, Plant and Equipment(Net PPE) was $7.57 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.58 Mil.
Selling, General, & Admin. Expense(SGA) was $10.21 Mil.
Total Current Liabilities was $5.42 Mil.
Long-Term Debt & Capital Lease Obligation was $7.50 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)
	=	(1.217 / 22.524)	/	(1.008 / 19.985)
	=	0.054031	/	0.050438
	=	1.0712

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)
	=	(19.985 / 19.985)	/	(22.524 / 22.524)
	=	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 - (46.865 + 7.192) / 464.385)	/	(1 - (53.182 + 7.573) / 426.259)
	=	0.883594	/	0.857469
	=	1.0305

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
	=	22.524	/	19.985
	=	1.127

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))
	=	(0.579 / (0.579 + 7.573))	/	(0.754 / (0.754 + 7.192))
	=	0.071026	/	0.094891
	=	0.7485

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)
	=	(10.842 / 22.524)	/	(10.214 / 19.985)
	=	0.481353	/	0.511083
	=	0.9418

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)
	=	((5 + 5.648) / 464.385)	/	((7.5 + 5.42) / 426.259)
	=	0.022929	/	0.03031
	=	0.7565

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
	=	(3.934 - 0	-	5.703)	/	464.385
	=	-0.003809

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.

Athens Bancshares has a M-score of -2.25 suggests that the company is unlikely to be a manipulator.

Athens Bancshares Beneish M-Score Related Terms

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Athens Bancshares (Athens Bancshares) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Athens Bancshares Corp (OTCPK:AFCB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.athensfederal.com

Athens Bancshares Corp is a bank holding company of Athens Federal Community Bank. It provides financial services to individuals and corporate customers. The company's deposit products include checking, savings, certificates of deposit and IRA accounts. The primary lending products are one-to-four family residential, commercial real estate, and consumer loans. The company's loan portfolio divides into five segments commercial, residential 1-4 family, commercial real estate and multi-family, construction and land and consumer and other.

Executives

Jeffrey L Cunningham	director, officer: President & CEO	ATHENS BANCSHARES CORPORATION, 106 WASHINGTON AVENUE PO BOX 869, ATHENS TN 37371
Myra Nandora Jenne	director	106 WASHINGTON AVENUE, PO BOX 869, ATHENS TN 37371