WSB Financial (WSB Financial) Beneish M-Score : 0.00 (As of Jun. 05, 2024)

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What is WSB 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.

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

During the past 6 years, the highest Beneish M-Score of WSB Financial was 0.00. The lowest was 0.00. And the median was 0.00.

WSB 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 WSB Financial 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 * 12.1731

0.528 * 1

0.404 * 0.9962

0.892 * 0.1901

0.115 * 0.9209

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 5.8193

4.679 * -0.061189

0.327 * 1.3398

5.84

* 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 (Dec08) TTM:

Last Year (Dec07) TTM:

Total Receivables was $5.88 Mil.
Revenue was 0.496 + 0.764 + 1.109 + 2.271 = $4.64 Mil.
Gross Profit was 0.496 + 0.764 + 1.109 + 2.271 = $4.64 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $365.21 Mil.
Property, Plant and Equipment(Net PPE) was $7.91 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.81 Mil.
Selling, General, & Admin. Expense(SGA) was $10.69 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $8.25 Mil.
Net Income was -11.575 + -4.298 + -10.961 + -5.818 = $-32.65 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -3.408 + -2.867 + -3.321 + -0.709 = $-10.31 Mil.

Total Receivables was $2.54 Mil.
Revenue was 5.121 + 6.5 + 6.614 + 6.178 = $24.41 Mil.
Gross Profit was 5.121 + 6.5 + 6.614 + 6.178 = $24.41 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $489.33 Mil.
Property, Plant and Equipment(Net PPE) was $8.76 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.82 Mil.
Selling, General, & Admin. Expense(SGA) was $9.67 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $8.25 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)
	=	(5.879 / 4.64)	/	(2.541 / 24.413)
	=	1.267026	/	0.104084
	=	12.1731

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)
	=	(24.413 / 24.413)	/	(4.64 / 4.64)
	=	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 + 7.905) / 365.21)	/	(1 - (0 + 8.76) / 489.333)
	=	0.978355	/	0.982098
	=	0.9962

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
	=	4.64	/	24.413
	=	0.1901

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))
	=	(0.822 / (0.822 + 8.76))	/	(0.812 / (0.812 + 7.905))
	=	0.085786	/	0.093151
	=	0.9209

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)
	=	(10.691 / 4.64)	/	(9.666 / 24.413)
	=	2.304095	/	0.395937
	=	5.8193

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)
	=	((8.248 + 0) / 365.21)	/	((8.248 + 0) / 489.333)
	=	0.022584	/	0.016856
	=	1.3398

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
	=	(-32.652 - 0	-	-10.305)	/	365.21
	=	-0.061189

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.

WSB Financial has a M-score of 5.84 signals that the company is likely to be a manipulator.

WSB Financial Beneish M-Score Related Terms

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WSB Financial (WSB Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » WSB Financial Inc (OTCPK:WSFGQ) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

607 Pacific Avenue, Bremerton, WA, USA, 98337

Website

http://www.westsoundbank.com

WSB Financial Inc is a bank holding company. The company provides real estate lending products and supplemented by commercial banking products and services. It also provides short-term to long-term commercial and consumer lending products and services.

Executives

Charles L Turner

officer: Sr. VP, Chief Lending Officer

C/O SOUND FINANCIAL BANCORP, INC., 2400 3RD AVENUE, SUITE 150, SEATTLE WA 98121