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ATLO (Ames National) Beneish M-Score : -2.33 (As of Dec. 14, 2024)


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What is Ames National 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 -2.33 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ATLO' s Beneish M-Score Range Over the Past 10 Years
Min: -9.85   Med: -2.45   Max: -2.04
Current: -2.33

During the past 13 years, the highest Beneish M-Score of Ames National was -2.04. The lowest was -9.85. And the median was -2.45.


Ames National 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 Ames National 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 * 1.159+0.528 * 1+0.404 * 0.9998+0.892 * 0.9546+0.115 * 1.0556
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1124+4.679 * -0.002783-0.327 * 0.7958
=-2.33

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $15.26 Mil.
Revenue was 13.49 + 13.491 + 13.083 + 13.251 = $53.32 Mil.
Gross Profit was 13.49 + 13.491 + 13.083 + 13.251 = $53.32 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $2,123.17 Mil.
Property, Plant and Equipment(Net PPE) was $21.86 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.70 Mil.
Selling, General, & Admin. Expense(SGA) was $26.05 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $83.10 Mil.
Net Income was 2.217 + 2.184 + 2.304 + 2.139 = $8.84 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 3.099 + 3.892 + 1.368 + 6.393 = $14.75 Mil.
Total Receivables was $13.79 Mil.
Revenue was 13.049 + 13.617 + 13.923 + 15.262 = $55.85 Mil.
Gross Profit was 13.049 + 13.617 + 13.923 + 15.262 = $55.85 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $2,154.05 Mil.
Property, Plant and Equipment(Net PPE) was $21.83 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.80 Mil.
Selling, General, & Admin. Expense(SGA) was $24.53 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $105.94 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)
=(15.261 / 53.315) / (13.794 / 55.851)
=0.286242 / 0.246979
=1.159

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)
=(55.851 / 55.851) / (53.315 / 53.315)
=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 + 21.858) / 2123.173) / (1 - (0 + 21.828) / 2154.051)
=0.989705 / 0.989867
=0.9998

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
=53.315 / 55.851
=0.9546

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))
=(1.802 / (1.802 + 21.828)) / (1.702 / (1.702 + 21.858))
=0.076259 / 0.072241
=1.0556

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)
=(26.048 / 53.315) / (24.529 / 55.851)
=0.488568 / 0.439186
=1.1124

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)
=((83.101 + 0) / 2123.173) / ((105.942 + 0) / 2154.051)
=0.03914 / 0.049183
=0.7958

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
=(8.844 - 0 - 14.752) / 2123.173
=-0.002783

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.

Ames National has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.


Ames National Beneish M-Score Related Terms

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Ames National Business Description

Traded in Other Exchanges
N/A
Address
405 5th Street, Box 846, Ames, IA, USA, 50010
Ames National Corporation is a United States-based bank holding company. Through its subsidiaries, it provides checking, savings and time deposits, cash management services, merchant credit card processing, safe deposit boxes, wire transfers, direct deposit of payroll and social security checks, and automated/video teller machine access. Its loan portfolio comprises commercial, residential & agricultural real estate loans; agricultural & business operating loans & lines of credit; equipment loans; vehicle loans; personal loans; and mortgage loans. Its operations are conducted in central, north central, and south-central Iowa.
Executives
Scott T Bauer other: Ex VP of Subsidiary bank PO BOX 846, AMES IA 50010
Michael A Wilson officer: Executive Vice President PO BOX 846, AMES IA 50010
Michelle R Cassabaum director PO BOX 846, AMES IA 50010
Jeffrey K Putzier other: President of Subsidiary Bank POST OFFICE BOX 846, AMES IA 50010
Patrick G Hagan director PO BOX 846, AMES IA 50010
David W. Benson director PO BOX 846, AMES IA 50010
Kevin L Swartz director PO BOX 846, AMES IA 50010
John Patrick Nelson officer: Vice President POST OFFICE BOX 846, AMES IA 50010
Robert A Thomas other: President of subsidiary bank PO BOX 846, AMES IA 50010
Jeffery C Baker director PO BOX 846, AMES IA 50010
Betty A Baudler director PO BOX 846, AMES IA 50010
Adam Snodgrass other: President of subsidiary bank PO BOX 846, AMES IA 50010
Larson James R Ii director 3321 RIDGETOP RD, AMES IA 50014
John L Pierschbacher officer: Controller C/O NORTH CENTRAL BANCSHARES INC, 825 CENTRAL AVE PO BOX 1237, FORT DODGE IA 50501
Lisa M Eslinger director PO BOX 846, AMES IA 50014