SFSB (SFBI) Beneish M-Score : 0.00 (As of Apr. 27, 2024)

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

During the past 5 years, the highest Beneish M-Score of SFSB was 0.00. The lowest was 0.00. And the median was 0.00.

SFSB 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 SFSB 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 * 0.908

0.528 * 1

0.404 * 0.9914

0.892 * 1.2452

0.115 * 2.9121

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9801

4.679 * -0.013228

0.327 * 0.9899

-2.18

* 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 (Mar09) TTM:

Last Year (Mar08) TTM:

Total Receivables was $0.65 Mil.
Revenue was 1.2 + 2.934 + -0.495 + 1.155 = $4.79 Mil.
Gross Profit was 1.2 + 2.934 + -0.495 + 1.155 = $4.79 Mil.
Total Current Assets was $3.28 Mil.
Total Assets was $183.85 Mil.
Property, Plant and Equipment(Net PPE) was $4.97 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.04 Mil.
Selling, General, & Admin. Expense(SGA) was $2.43 Mil.
Total Current Liabilities was $10.32 Mil.
Long-Term Debt & Capital Lease Obligation was $25.00 Mil.
Net Income was -0.163 + -0.763 + -1.574 + 0.142 = $-2.36 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.133 + -0.012 + 0.103 + 0.116 = $0.07 Mil.

Total Receivables was $0.57 Mil.
Revenue was 0.984 + 1.036 + 0.922 + 0.908 = $3.85 Mil.
Gross Profit was 0.984 + 1.036 + 0.922 + 0.908 = $3.85 Mil.
Total Current Assets was $1.34 Mil.
Total Assets was $175.20 Mil.
Property, Plant and Equipment(Net PPE) was $5.07 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.13 Mil.
Selling, General, & Admin. Expense(SGA) was $1.99 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $34.00 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)
	=	(0.649 / 4.794)	/	(0.574 / 3.85)
	=	0.135378	/	0.149091
	=	0.908

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)
	=	(3.85 / 3.85)	/	(4.794 / 4.794)
	=	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 - (3.282 + 4.966) / 183.847)	/	(1 - (1.343 + 5.07) / 175.198)
	=	0.955137	/	0.963396
	=	0.9914

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
	=	4.794	/	3.85
	=	1.2452

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))
	=	(0.13 / (0.13 + 5.07))	/	(0.043 / (0.043 + 4.966))
	=	0.025	/	0.008585
	=	2.9121

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)
	=	(2.431 / 4.794)	/	(1.992 / 3.85)
	=	0.507092	/	0.517403
	=	0.9801

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)
	=	((25 + 10.319) / 183.847)	/	((34 + 0) / 175.198)
	=	0.192111	/	0.194066
	=	0.9899

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
	=	(-2.358 - 0	-	0.074)	/	183.847
	=	-0.013228

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.

SFSB has a M-score of -2.18 suggests that the company is unlikely to be a manipulator.

SFSB Beneish M-Score Related Terms

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SFSB (SFBI) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

1614 Churchville Road, Bel Air, MD, USA, 21015

Website

http://www.slavie.com

SFSB Inc is a holding company engaged in the business of attracting deposits and investing those funds, together with funds generated from operations and borrowings in residential real estate & commercial mortgage loans.