Pinnacle Bancshares (Pinnacle Bancshares) Beneish M-Score : 0.00 (As of May. 19, 2024)

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

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

Pinnacle 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 Pinnacle 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 * 1.1739

0.528 * 1

0.404 * 1.001

0.892 * 0.97

0.115 * 1.0039

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0231

4.679 * -0.001261

0.327 * 2.9224

-2.98

* 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 (Sep07) TTM:

Last Year (Sep06) TTM:

Total Receivables was $1.54 Mil.
Revenue was 2.109 + 2.087 + 1.956 + 2.036 = $8.19 Mil.
Gross Profit was 2.109 + 2.087 + 1.956 + 2.036 = $8.19 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $239.52 Mil.
Property, Plant and Equipment(Net PPE) was $7.21 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.50 Mil.
Selling, General, & Admin. Expense(SGA) was $3.81 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $9.39 Mil.
Net Income was 0.385 + 0.405 + 0.247 + 0.359 = $1.40 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.223 + 0.154 + 1.069 + 0.252 = $1.70 Mil.

Total Receivables was $1.36 Mil.
Revenue was 2.216 + 2.108 + 2.074 + 2.043 = $8.44 Mil.
Gross Profit was 2.216 + 2.108 + 2.074 + 2.043 = $8.44 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $230.62 Mil.
Property, Plant and Equipment(Net PPE) was $7.17 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.50 Mil.
Selling, General, & Admin. Expense(SGA) was $3.83 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $3.09 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)
	=	(1.543 / 8.188)	/	(1.355 / 8.441)
	=	0.188447	/	0.160526
	=	1.1739

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)
	=	(8.441 / 8.441)	/	(8.188 / 8.188)
	=	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 + 7.214) / 239.522)	/	(1 - (0 + 7.17) / 230.615)
	=	0.969882	/	0.968909
	=	1.001

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
	=	8.188	/	8.441
	=	0.97

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))
	=	(0.501 / (0.501 + 7.17))	/	(0.502 / (0.502 + 7.214))
	=	0.065311	/	0.06506
	=	1.0039

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)
	=	(3.805 / 8.188)	/	(3.834 / 8.441)
	=	0.464704	/	0.454212
	=	1.0231

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)
	=	((9.388 + 0) / 239.522)	/	((3.093 + 0) / 230.615)
	=	0.039195	/	0.013412
	=	2.9224

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
	=	(1.396 - 0	-	1.698)	/	239.522
	=	-0.001261

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.

Pinnacle Bancshares has a M-score of -2.98 suggests that the company is unlikely to be a manipulator.

Pinnacle Bancshares Beneish M-Score Related Terms

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Pinnacle Bancshares (Pinnacle Bancshares) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Pinnacle Bancshares Inc (OTCPK:PCLB) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

1811 Second Avenue, Jasper, AL, USA, 35501

Website

https://www.pinnaclebanc.com

Pinnacle Bancshares Inc is a bank holding company for Pinnacle Bank. It obtains funds in the form of savings deposits and invests such funds in mortgage loans on single-family residential real estate.