American Bank (American Bank) Beneish M-Score : 0.00 (As of Jun. 23, 2024)

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

During the past 7 years, the highest Beneish M-Score of American Bank was 0.00. The lowest was 0.00. And the median was 0.00.

American Bank 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 American Bank 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 * 1.0581

0.528 * 1

0.404 * 1.0002

0.892 * 0.9254

0.115 * 1.0571

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1328

4.679 * 0.00028

0.327 * 0.9392

-2.49

* 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 (Mar07) TTM:

Last Year (Mar06) TTM:

Total Receivables was $2.78 Mil.
Revenue was 2.741 + 2.539 + 2.608 + 2.638 = $10.53 Mil.
Gross Profit was 2.741 + 2.539 + 2.608 + 2.638 = $10.53 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $504.37 Mil.
Property, Plant and Equipment(Net PPE) was $0.97 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.54 Mil.
Selling, General, & Admin. Expense(SGA) was $2.87 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $72.21 Mil.
Net Income was 0.759 + 0.674 + 0.734 + 0.685 = $2.85 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.012 + 0.328 + 0.578 + 0.793 = $2.71 Mil.

Total Receivables was $2.84 Mil.
Revenue was 2.73 + 3.042 + 2.729 + 2.873 = $11.37 Mil.
Gross Profit was 2.73 + 3.042 + 2.729 + 2.873 = $11.37 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $524.87 Mil.
Property, Plant and Equipment(Net PPE) was $1.11 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.04 Mil.
Selling, General, & Admin. Expense(SGA) was $2.73 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $80.01 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)
	=	(2.778 / 10.526)	/	(2.837 / 11.374)
	=	0.263918	/	0.249429
	=	1.0581

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)
	=	(11.374 / 11.374)	/	(10.526 / 10.526)
	=	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 + 0.971) / 504.368)	/	(1 - (0 + 1.109) / 524.874)
	=	0.998075	/	0.997887
	=	1.0002

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
	=	10.526	/	11.374
	=	0.9254

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))
	=	(2.043 / (2.043 + 1.109))	/	(1.539 / (1.539 + 0.971))
	=	0.64816	/	0.613147
	=	1.0571

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)
	=	(2.865 / 10.526)	/	(2.733 / 11.374)
	=	0.272183	/	0.240285
	=	1.1328

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)
	=	((72.208 + 0) / 504.368)	/	((80.007 + 0) / 524.874)
	=	0.143165	/	0.152431
	=	0.9392

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
	=	(2.852 - 0	-	2.711)	/	504.368
	=	0.00028

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.

American Bank has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.

American Bank Beneish M-Score Related Terms

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American Bank (American Bank) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » American Bank Inc (OTCPK:AMBK) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

4029 West Tilghman Street, Allentown, PA, USA, 18104

Website

https://www.ambk.com

American Bank Inc is a United States-based holding company for American Bank. The bank offers deposit and loan products for consumer, business, institutional and governmental customers, including interest-bearing checking, money market accounts, and retirement accounts. It generates revenue from interest and dividend income on loans and investments.

Executives

John C Long

director

2400 BERNVILLE ROAD, READING PA 19612