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Village Bank and Trust Financial (Village Bank and Trust Financial) Beneish M-Score : -2.64 (As of Apr. 24, 2024)


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What is Village Bank and Trust Financial 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.

Good Sign:

Beneish M-Score -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Village Bank and Trust Financial's Beneish M-Score or its related term are showing as below:

VBFC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86   Med: -2.57   Max: -1.58
Current: -2.64

During the past 13 years, the highest Beneish M-Score of Village Bank and Trust Financial was -1.58. The lowest was -2.86. And the median was -2.57.


Village Bank and Trust Financial 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 Village Bank and Trust Financial 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 * 1.3412+0.528 * 1+0.404 * 1.0572+0.892 * 0.7816+0.115 * 0.9091
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.253+4.679 * -0.004126-0.327 * 1.6971
=-2.64

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $3.83 Mil.
Revenue was 7.84 + 2.445 + 7.345 + 7.621 = $25.25 Mil.
Gross Profit was 7.84 + 2.445 + 7.345 + 7.621 = $25.25 Mil.
Total Current Assets was $119.80 Mil.
Total Assets was $736.62 Mil.
Property, Plant and Equipment(Net PPE) was $11.76 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.60 Mil.
Selling, General, & Admin. Expense(SGA) was $14.09 Mil.
Total Current Liabilities was $0.21 Mil.
Long-Term Debt & Capital Lease Obligation was $59.46 Mil.
Net Income was 1.692 + -2.553 + 1.239 + 1.54 = $1.92 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 3.434 + 3.034 + -3.607 + 2.096 = $4.96 Mil.
Total Receivables was $3.65 Mil.
Revenue was 8.275 + 8.285 + 8.259 + 7.489 = $32.31 Mil.
Gross Profit was 8.275 + 8.285 + 8.259 + 7.489 = $32.31 Mil.
Total Current Assets was $149.57 Mil.
Total Assets was $723.27 Mil.
Property, Plant and Equipment(Net PPE) was $11.75 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.55 Mil.
Selling, General, & Admin. Expense(SGA) was $14.39 Mil.
Total Current Liabilities was $0.07 Mil.
Long-Term Debt & Capital Lease Obligation was $34.46 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)
=(3.827 / 25.251) / (3.651 / 32.308)
=0.151558 / 0.113006
=1.3412

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)
=(32.308 / 32.308) / (25.251 / 25.251)
=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 - (119.795 + 11.76) / 736.616) / (1 - (149.566 + 11.748) / 723.27)
=0.821406 / 0.776966
=1.0572

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
=25.251 / 32.308
=0.7816

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))
=(0.546 / (0.546 + 11.748)) / (0.604 / (0.604 + 11.76))
=0.044412 / 0.048852
=0.9091

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)
=(14.091 / 25.251) / (14.389 / 32.308)
=0.558037 / 0.44537
=1.253

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)
=((59.464 + 0.21) / 736.616) / ((34.456 + 0.07) / 723.27)
=0.081011 / 0.047736
=1.6971

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
=(1.918 - 0 - 4.957) / 736.616
=-0.004126

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.

Village Bank and Trust Financial has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.


Village Bank and Trust Financial Beneish M-Score Related Terms

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Village Bank and Trust Financial (Village Bank and Trust Financial) Business Description

Traded in Other Exchanges
N/A
Address
13319 Midlothian Turnpike, Midlothian, VA, USA, 23113
Village Bank and Trust Financial Corp is a bank holding company. The bank is the primary operating business of the company. It offers a range of banking and related financial services, including checking, savings, certificates of deposit and other depository services, and commercial, real estate, and consumer loans, primarily in the Richmond, Virginia and Williamsburg, Virginia metropolitan areas. Its operating segment includes Commercial Banking and Mortgage Banking. The company generates maximum revenue from the Commercial Banking segment.
Executives
Selena Trudy Sanderson director 13319 MIDLOTHIAN TURNPIKE, MIDLOTHIAN VA 23113
Ronald L. Carey director 13319 MIDLOTHIAN TURNPIKE, MIDLOTHIAN VA 23113
Jennifer J. Church director P.O. BOX 330, MIDLOTHIAN VA 23113
Mary Margaret Kastelberg director P.O. BOX 330, MIDLOTHIAN VA 23113
Christy Quesenbery officer: EVP-Operations 11730 HULL STREET ROAD, MIDLOTHIAN VA 23112
Roy I Barzel officer: EVP-CCO 11730 HULL STREET ROAD, MIDLOTHIAN VA 23112
Kenneth R Lehman 10 percent owner 122 N GORDON ROAD, FT LAUDERDALE FL 33301
Craig D Bell director PO BOX 330, MIDLOTHIAN VA 23113
Jenkins Frank E. Jr. director PO BOX 330, MIDLOTHIAN VA 23113
Avery Raymond Thomas Iii director PO BOX 330, MIDLOTHIAN VA 23113
Michael A Katzen director 15521 MIDLOTHIAN TURNPIKE, SUITE 200, MIDLOTHIAN VA 23113
William G Foster officer: Senior Vice President 15521 MIDLOTHIAN TURNPIKE, SUITE 200, MIDLOTHIAN VA 23113
Hendricks James E Jr officer: EVP-Chief Credit Officer C/O VILLAGE BANK, P.O. BOX 330, MIDLOTHIAN VA 23113
Charles E Walton director 15521 MIDLOTHIAN TURNPIKE, SUITE 200, MIDLOTHIAN VA 23113
Kaloski Donald M. Jr. officer: EVP-CFO 13319 MIDLOTHIAN TURNPIKE, MIDLOTHIAN VA 23113