Bank of South Carolina (Bank of South Carolina) Beneish M-Score : -2.86 (As of Apr. 30, 2024)

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What is Bank of South Carolina 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 -2.86 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Bank of South Carolina's Beneish M-Score or its related term are showing as below:

BKSC' s Beneish M-Score Range Over the Past 10 Years
Min: -5.28 Med: -2.51 Max: -1.95
Current: -2.86

During the past 13 years, the highest Beneish M-Score of Bank of South Carolina was -1.95. The lowest was -5.28. And the median was -2.51.

Bank of South Carolina 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 Bank of South Carolina 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 * 1.088

0.528 * 1

0.404 * 1.09

0.892 * 1.0353

0.115 * 1.1393

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0245

4.679 * -0.005472

0.327 * 2.5861

-2.86

* 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 (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was $1.87 Mil.
Revenue was 5.044 + 5.15 + 5.516 + 5.454 = $21.16 Mil.
Gross Profit was 5.044 + 5.15 + 5.516 + 5.454 = $21.16 Mil.
Total Current Assets was $282.95 Mil.
Total Assets was $648.41 Mil.
Property, Plant and Equipment(Net PPE) was $17.17 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.34 Mil.
Selling, General, & Admin. Expense(SGA) was $8.23 Mil.
Total Current Liabilities was $27.96 Mil.
Long-Term Debt & Capital Lease Obligation was $13.12 Mil.
Net Income was 1.278 + 1.589 + 1.808 + 1.84 = $6.52 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.534 + 1.73 + 1.774 + 6.025 = $10.06 Mil.

Total Receivables was $1.66 Mil.
Revenue was 5.139 + 4.853 + 5.15 + 5.3 = $20.44 Mil.
Gross Profit was 5.139 + 4.853 + 5.15 + 5.3 = $20.44 Mil.
Total Current Assets was $315.01 Mil.
Total Assets was $655.47 Mil.
Property, Plant and Equipment(Net PPE) was $17.45 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.39 Mil.
Selling, General, & Admin. Expense(SGA) was $7.76 Mil.
Total Current Liabilities was $2.32 Mil.
Long-Term Debt & Capital Lease Obligation was $13.74 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)
	=	(1.871 / 21.164)	/	(1.661 / 20.442)
	=	0.088405	/	0.081254
	=	1.088

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)
	=	(20.442 / 20.442)	/	(21.164 / 21.164)
	=	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 - (282.948 + 17.166) / 648.406)	/	(1 - (315.012 + 17.448) / 655.465)
	=	0.537151	/	0.492788
	=	1.09

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
	=	21.164	/	20.442
	=	1.0353

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))
	=	(0.389 / (0.389 + 17.448))	/	(0.335 / (0.335 + 17.166))
	=	0.021809	/	0.019142
	=	1.1393

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)
	=	(8.227 / 21.164)	/	(7.756 / 20.442)
	=	0.388726	/	0.379415
	=	1.0245

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)
	=	((13.117 + 27.964) / 648.406)	/	((13.738 + 2.32) / 655.465)
	=	0.063357	/	0.024499
	=	2.5861

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
	=	(6.515 - 0	-	10.063)	/	648.406
	=	-0.005472

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.

Bank of South Carolina has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.

Bank of South Carolina Beneish M-Score Related Terms

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Bank of South Carolina (Bank of South Carolina) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Bank of South Carolina Corp (OTCPK:BKSC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

256 Meeting Street, Charleston, SC, USA, 29401

Website

https://www.banksc.com

Bank of South Carolina Corp is a financial institution holding company. It is engaged in providing financial product and services. The bank offers various deposits, including non-interest-bearing accounts, negotiable order of withdrawal accounts, money market accounts, time deposits and savings accounts. Its loan offering includes commercial and industrial loans; real estate loans; loans to individuals for household, family and other personal expenditures. In addition to one- to four-family residential mortgage loans, it offers home equity loans and lines of credit that are secured by the borrower's primary or secondary residence. Geographically, all the activities are functioned through the regions of South Carolina and derive majority of its income from interest on loans and investments.

Executives

Walpole Gene H Iv	officer: Chief Financial Officer	PO BOX 538, CHARLESTON SC 29402
Fleetwood S Hassell	officer: Senior Vice President	P O BOX 538, CHARLESTON SC 29402
Sheryl G Sharry	officer: Senior Vice President	P. O. BOX 538, CHARLESTON SC 29402
Douglas H Sass	officer: Executive Vice President	P O BOX 538, CHARLESTON SC 29402
Charles G Lane	director	P O BOX 538, CHARLESTON SC 29402
Lane C Hugh Jr	director, 10 percent owner, officer: President & CEO	P O BOX 538, CHARLESTON SC 29402
Susanne King Boyd	officer: Cheif Operating Officer	PO BOX 538, CHARLESTON SC 29402
David W Bunch	director	P O BOX 538, CHARLESTON SC 29402
Hutson Richard W Jr	director	P O BOX 538, CHARLESTON SC 29402
Elizabeth M Hagood	director	P O BOX 538, CHARLESTON SC 29402
Hiott William L Jr	director, officer: Executive Vice President
Alan I Nussbaum	director	P O BOX 538, CHARLESTON SC 29402
David R Schools	director	P O BOX 538, CHARLESTON SC 29402
Malcolm M Rhodes	director	P O BOX 538, CHARLESTON SC 29402
Glen B Haynes	director	P O BOX 538, CHARLESTON SC 29402