Ballston SpA Bancorp (Ballston SpA Bancorp) Beneish M-Score : 0.00 (As of Jun. 23, 2024)

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What is Ballston SpA 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.

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

During the past 5 years, the highest Beneish M-Score of Ballston SpA Bancorp was 0.00. The lowest was 0.00. And the median was 0.00.

Ballston SpA 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 Ballston SpA 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 * 1.0653

0.528 * 1

0.404 * 1.0019

0.892 * 1.0234

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9601

4.679 * 0.006207

0.327 * 1.2493

-2.44

* 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 (Dec06) TTM:

Last Year (Dec05) TTM:

Total Receivables was $1.32 Mil.
Revenue was $12.87 Mil.
Gross Profit was $12.87 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $319.49 Mil.
Property, Plant and Equipment(Net PPE) was $3.89 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $5.57 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $21.66 Mil.
Net Income was $1.98 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $0.00 Mil.

Total Receivables was $1.21 Mil.
Revenue was $12.57 Mil.
Gross Profit was $12.57 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $308.67 Mil.
Property, Plant and Equipment(Net PPE) was $4.34 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $5.67 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $16.75 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)
	=	(1.318 / 12.866)	/	(1.209 / 12.572)
	=	0.102441	/	0.096166
	=	1.0653

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)
	=	(12.572 / 12.572)	/	(12.866 / 12.866)
	=	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 + 3.886) / 319.489)	/	(1 - (0 + 4.338) / 308.667)
	=	0.987837	/	0.985946
	=	1.0019

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
	=	12.866	/	12.572
	=	1.0234

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 / (0 + 4.338))	/	(0 / (0 + 3.886))
	=	0	/	0
	=	1

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)
	=	(5.566 / 12.866)	/	(5.665 / 12.572)
	=	0.432613	/	0.450605
	=	0.9601

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)
	=	((21.66 + 0) / 319.489)	/	((16.75 + 0) / 308.667)
	=	0.067796	/	0.054266
	=	1.2493

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
	=	(1.983 - 0	-	0)	/	319.489
	=	0.006207

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.

Ballston SpA Bancorp has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.

Ballston SpA Bancorp Beneish M-Score Related Terms

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Ballston SpA Bancorp (Ballston SpA Bancorp) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

N/A

Address

990 State Route 67, Ballston Spa, NY, USA, 12020

Website

https://www.bsnb.com

Ballston SpA Bancorp Inc is a bank-based financial services company. The parent company's banking subsidiary, Ballston Spa National Bank, is a community-based commercial bank and provides banking, financing, fiduciary, brokerage and other financial services to corporate, municipal, and individual customers through its thirteen branch offices.