APLO (Apollo Bancorp) Beneish M-Score : -7.07 (As of Dec. 15, 2024)

View and export this data going back to 2009. Start your Free Trial

What is Apollo Bancorp 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 -7.07 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

APLO' s Beneish M-Score Range Over the Past 10 Years
Min: -7.07 Med: -4.62 Max: -2.16
Current: -7.07

During the past 5 years, the highest Beneish M-Score of Apollo Bancorp was -2.16. The lowest was -7.07. And the median was -4.62.

Apollo Bancorp 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 Apollo Bancorp 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 * 1.5473

0.528 * 1

0.404 * 1.0008

0.892 * 1.0286

0.115 * 0.9463

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8537

4.679 * -0.002505

0.327 * 16.6665

-7.07

* 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 (Dec22) TTM:

Total Receivables was $4.64 Mil.
Revenue was $8.50 Mil.
Gross Profit was $8.50 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $198.42 Mil.
Property, Plant and Equipment(Net PPE) was $1.89 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.37 Mil.
Selling, General, & Admin. Expense(SGA) was $0.35 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $27.15 Mil.
Net Income was $1.71 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $2.20 Mil.

Total Receivables was $2.92 Mil.
Revenue was $8.26 Mil.
Gross Profit was $8.26 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $182.71 Mil.
Property, Plant and Equipment(Net PPE) was $1.87 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.35 Mil.
Selling, General, & Admin. Expense(SGA) was $0.40 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $1.50 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)
	=	(4.644 / 8.497)	/	(2.918 / 8.261)
	=	0.546546	/	0.353226
	=	1.5473

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)
	=	(8.261 / 8.261)	/	(8.497 / 8.497)
	=	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 + 1.885) / 198.418)	/	(1 - (0 + 1.872) / 182.714)
	=	0.9905	/	0.989754
	=	1.0008

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
	=	8.497	/	8.261
	=	1.0286

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))
	=	(0.345 / (0.345 + 1.872))	/	(0.371 / (0.371 + 1.885))
	=	0.155616	/	0.16445
	=	0.9463

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)
	=	(0.353 / 8.497)	/	(0.402 / 8.261)
	=	0.041544	/	0.048662
	=	0.8537

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)
	=	((27.15 + 0) / 198.418)	/	((1.5 + 0) / 182.714)
	=	0.136832	/	0.00821
	=	16.6665

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
	=	(1.705 - 0	-	2.202)	/	198.418
	=	-0.002505

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.

Apollo Bancorp has a M-score of -7.07 suggests that the company is unlikely to be a manipulator.

Apollo Bancorp Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Apollo Bancorp's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Apollo Bancorp Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Apollo Bancorp Inc (OTCPK:APLO) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

201 North Warren Avenue, P.O. Box 247, Apollo, PA, USA, 15613

Website

https://www.apollotrust.com

Apollo Bancorp Inc operates as a holding company. The company and its subsidiary derive substantially all their income from banking and bank-related services, which includes interest earnings on residential real estate, commercial mortgage, commercial, and consumer loan financing as well as interest-earning investment securities and a variety of deposit and fiduciary services to its customers through seven locations.