Bank of the James Financial Group (Bank of the James Financial Group) Beneish M-Score : -2.41 (As of Apr. 28, 2024)

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What is Bank of the James Financial Group 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 -2.41 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 the James Financial Group's Beneish M-Score or its related term are showing as below:

BOTJ' s Beneish M-Score Range Over the Past 10 Years
Min: -19.47 Med: -2.51 Max: -2.05
Current: -2.41

During the past 13 years, the highest Beneish M-Score of Bank of the James Financial Group was -2.05. The lowest was -19.47. And the median was -2.51.

Bank of the James Financial Group 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 the James Financial Group 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 * 1.0417

0.528 * 1

0.404 * 0.9776

0.892 * 0.9947

0.115 * 1.2958

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0338

4.679 * -0.000813

0.327 * 0.95

-2.41

* 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 $2.84 Mil.
Revenue was 10.385 + 10.347 + 10.58 + 10.49 = $41.80 Mil.
Gross Profit was 10.385 + 10.347 + 10.58 + 10.49 = $41.80 Mil.
Total Current Assets was $244.96 Mil.
Total Assets was $969.37 Mil.
Property, Plant and Equipment(Net PPE) was $18.14 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.97 Mil.
Selling, General, & Admin. Expense(SGA) was $20.18 Mil.
Total Current Liabilities was $0.48 Mil.
Long-Term Debt & Capital Lease Obligation was $19.93 Mil.
Net Income was 2.108 + 2.078 + 2.534 + 1.984 = $8.70 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 3.523 + 3.373 + -2.227 + 4.823 = $9.49 Mil.

Total Receivables was $2.74 Mil.
Revenue was 10.856 + 11.51 + 9.899 + 9.759 = $42.02 Mil.
Gross Profit was 10.856 + 11.51 + 9.899 + 9.759 = $42.02 Mil.
Total Current Assets was $218.55 Mil.
Total Assets was $928.57 Mil.
Property, Plant and Equipment(Net PPE) was $17.97 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.61 Mil.
Selling, General, & Admin. Expense(SGA) was $19.62 Mil.
Total Current Liabilities was $0.09 Mil.
Long-Term Debt & Capital Lease Obligation was $20.49 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)
	=	(2.835 / 41.802)	/	(2.736 / 42.024)
	=	0.06782	/	0.065106
	=	1.0417

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)
	=	(42.024 / 42.024)	/	(41.802 / 41.802)
	=	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 - (244.958 + 18.141) / 969.371)	/	(1 - (218.548 + 17.974) / 928.571)
	=	0.728588	/	0.745284
	=	0.9776

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
	=	41.802	/	42.024
	=	0.9947

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))
	=	(2.609 / (2.609 + 17.974))	/	(1.967 / (1.967 + 18.141))
	=	0.126755	/	0.097822
	=	1.2958

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)
	=	(20.179 / 41.802)	/	(19.623 / 42.024)
	=	0.482728	/	0.466947
	=	1.0338

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)
	=	((19.932 + 0.48) / 969.371)	/	((20.494 + 0.089) / 928.571)
	=	0.021057	/	0.022166
	=	0.95

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
	=	(8.704 - 0	-	9.492)	/	969.371
	=	-0.000813

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 the James Financial Group has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.

Bank of the James Financial Group Beneish M-Score Related Terms

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Bank of the James Financial Group (Bank of the James Financial Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Bank of the James Financial Group Inc (NAS:BOTJ) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

828 Main Street, Lynchburg, VA, USA, 24504

Website

https://www.bankofthejames.bank

Bank of the James Financial Group Inc is a bank holding company that provides retail and commercial banking, deposit services, lending services, mortgage brokerage services and other banking services. The company provides a range of deposit services including checking accounts, savings accounts and other time deposits of various types, ranging from daily money market accounts to longer-term certificates of deposit. It offers various types of secured and unsecured consumer loans, including personal loans, lines of credit, overdraft lines of credit, automobile loans, installment loans, demand loans, and home equity loans. It operates three business segments, community banking; mortgage banking, and investment advisory services.

Executives

Phillip C Jamerson	director	828 MAIN ST, LYNCHBURG VA 24504
Bryant William C Iii	director	828 MAIN ST, LYNCHBURG VA 24504
Alford John R Jr	director	828 MAIN ST, LYNCHBURG VA 24504
Foster Watt R Jr	director	828 MAIN ST, LYNCHBURG VA 24504
Lewis C Addison	director	828 MAIN ST, LYNCHBURG VA 24504
J Todd Scruggs	officer: Secretary-Treasurer	PO BOX 1200, LYNCHBURG VA 24505
Umberger Harry P Jr	officer: EVP - Chief Credit Officer	828 MAIN ST, LYNCHBURG VA 24504
Robert R Chapman	director, officer: President	PO BOX 1200, LYNCHBURG VA 24505
Dalton Aubrey Douglas Iii	director	828 MAIN ST, LYNCHBURG VA 24504
Petticolas Augustus A Jr	director	828 MAIN ST, LYNCHBURG VA 24504
Julie P Doyle	director	828 MAIN ST, LYNCHBURG VA 24504
Pettyjohn Thomas W Jr	director	PO BOX 1200, LYNCHBURG VA 24505
Michael A Syrek	officer: EVP - Senior Lending Officer	828 MAIN ST, LYNCHBURG VA 24504
Sorenson Eric John Jr	officer: EVP	828 MAIN STREET, LYNCHBURG VA 24504
Lydia K Langley	director	828 MAIN ST, LYNCHBURG VA 24504