WVS Financial (WVS Financial) Beneish M-Score : -3.07 (As of Apr. 27, 2024)

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What is WVS 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 -3.07 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WVFC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07 Med: -2.51 Max: -0.84
Current: -3.07

During the past 13 years, the highest Beneish M-Score of WVS Financial was -0.84. The lowest was -3.07. And the median was -2.51.

WVS 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 WVS 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 * 0

0.528 * 1

0.404 * 1.603

0.892 * 0.8302

0.115 * 0.1311

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.3183

4.679 * 0.001002

0.327 * 0.3402

-3.07

* 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 (Mar22) TTM:

Total Receivables was $0.00 Mil.
Revenue was 1.339 + 0 + 1.596 + 1.327 = $4.26 Mil.
Gross Profit was 1.339 + 0 + 1.596 + 1.327 = $4.26 Mil.
Total Current Assets was $2.84 Mil.
Total Assets was $361.44 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.02 Mil.
Selling, General, & Admin. Expense(SGA) was $0.71 Mil.
Total Current Liabilities was $55.66 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was 0.287 + 0 + 0.497 + 0.305 = $1.09 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0.727 = $0.73 Mil.

Total Receivables was $0.99 Mil.
Revenue was 1.292 + 1.319 + 1.261 + 1.262 = $5.13 Mil.
Gross Profit was 1.292 + 1.319 + 1.261 + 1.262 = $5.13 Mil.
Total Current Assets was $139.95 Mil.
Total Assets was $368.80 Mil.
Property, Plant and Equipment(Net PPE) was $0.59 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.09 Mil.
Selling, General, & Admin. Expense(SGA) was $2.69 Mil.
Total Current Liabilities was $161.94 Mil.
Long-Term Debt & Capital Lease Obligation was $5.00 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 / 4.262)	/	(0.987 / 5.134)
	=	0	/	0.192248
	=	0

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)
	=	(5.134 / 5.134)	/	(4.262 / 4.262)
	=	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 - (2.844 + 0) / 361.443)	/	(1 - (139.947 + 0.59) / 368.798)
	=	0.992132	/	0.618932
	=	1.603

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
	=	4.262	/	5.134
	=	0.8302

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))
	=	(0.089 / (0.089 + 0.59))	/	(0.017 / (0.017 + 0))
	=	0.131075	/	1
	=	0.1311

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)
	=	(0.711 / 4.262)	/	(2.691 / 5.134)
	=	0.166823	/	0.524153
	=	0.3183

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)
	=	((0 + 55.655) / 361.443)	/	((5 + 161.937) / 368.798)
	=	0.15398	/	0.452652
	=	0.3402

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
	=	(1.089 - 0	-	0.727)	/	361.443
	=	0.001002

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.

WVS Financial has a M-score of -3.07 suggests that the company is unlikely to be a manipulator.

WVS Financial Beneish M-Score Related Terms

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WVS Financial (WVS Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » WVS Financial Corp (OTCPK:WVFC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

9001 Perry Highway, Pittsburgh, PA, USA, 15237

Website

https://www.wvsbank.com

WVS Financial Corp provides various banking products and services to residents and businesses. The principal categories of loans in the portfolio are single-family and multi-family residential real estate loans, commercial real estate loans, construction loans, consumer loans, and commercial loans. The company offers various deposit products, including regular savings accounts, demand accounts, negotiable order of withdrawal accounts, money market deposit accounts, and certificates of deposit, as well as individual retirement account certificates.

Executives

Twomey Edward F Iii	director	10081 OAKRIDGE DRIVE, WEXFORD PA 15090
Howard John A Jr	director
Mary Magestro-johnston	officer: VP,Treas,Chief Acctg Officer	9001 PERRY HIGHWAY, PITTSBURGH PA 15237
Lawrence M Lehman	director	WVS FINANCIAL CORP, 9001 PERRY HIGHWAY, PITTSBURGH PA 15237
Linda K Butia	officer: VP, Treas, Chief Acctg Officer	2413 BELLWOOD DRIVE, PITTSBURGH PA 15237
Margaret Vonderau	director	WVS FINANCIAL CORP, 9001 PERRY HIGHWAY, PITTSBURGH PA 15237
Bernard P Lefke	officer: VP Savings	9001 PERRY HIGHWAY, PITTSBURGH PA 15237
Keith A Simpson	officer: V.P., Treasurer & CAO	WVS FINANCIAL CORP, 9001 PERRY HIGHWAY, PITTSBURGH PA 15237
Joseph W Unger	director	3467 BABCOCK BOULEVARD, PITTSBURGH PA 15237
Michael R Rutan	officer: SR. VP - OPERATIONS	9356 ALMAR PLACE, PITTSBURGH PA 15237
Donald E Hook	director	WVS FINANCIAL CORP, 9001 PERRY HIGHWAY, PITTSBURGH PA 15237
John W Grace	director	9001 PERRY HIGHWAY, PITTSBURGH PA 15237
Arthur H Brandt	director	WVS FINANCIAL CORP, 9001 PERRY HIGHWAY, PITTSBURGH PA 15237
David L Aeberli	director	WVS FINANCIAL CORP, 9001 PERRY HIGHWAY, PITTSBURGH PA 15237
David J Bursic	director, officer: President/CEO/Director	C/O WVS FINANCIAL CORP, 9001 PERRY HIGHWAY, PITTSBURGH PA 15237