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GuruFocus has detected 1 Warning Sign with Carver Bancorp Inc $CARV.
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Carver Bancorp Inc (NAS:CARV)
Beneish M-Score
-2.59 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Carver Bancorp Inc has a M-score of -2.59 suggests that the company is not a manipulator.

CARV' s Beneish M-Score Range Over the Past 10 Years
Min: -72.2   Max: 34.7
Current: -2.59

-72.2
34.7

During the past 13 years, the highest Beneish M-Score of Carver Bancorp Inc was 34.70. The lowest was -72.20. And the median was -2.46.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Carver Bancorp Inc 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 * 0.9107+0.528 * 1+0.404 * 1.0007+0.892 * 0.9333+0.115 * 0.815
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1492+4.679 * -0.0042-0.327 * 0.7129
=-2.59

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $3.13 Mil.
Revenue was 5.793 + 6.161 + 6.828 + 7.214 = $26.00 Mil.
Gross Profit was 5.793 + 6.161 + 6.828 + 7.214 = $26.00 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $698.88 Mil.
Property, Plant and Equipment(Net PPE) was $5.47 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.21 Mil.
Selling, General & Admin. Expense(SGA) was $15.11 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $58.40 Mil.
Net Income was -1.156 + -0.252 + 0.408 + -1.029 = $-2.03 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.077 + -2.172 + 0.716 + 1.29 = $0.91 Mil.
Accounts Receivable was $3.68 Mil.
Revenue was 8.579 + 6.768 + 6.343 + 6.165 = $27.86 Mil.
Gross Profit was 8.579 + 6.768 + 6.343 + 6.165 = $27.86 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $754.13 Mil.
Property, Plant and Equipment(Net PPE) was $6.46 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.12 Mil.
Selling, General & Admin. Expense(SGA) was $14.09 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $88.40 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(3.125 / 25.996) / (3.677 / 27.855)
=0.1202108 / 0.13200503
=0.9107

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)
=(27.855 / 27.855) / (25.996 / 25.996)
=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 plant, property 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 + 5.468) / 698.875) / (1 - (0 + 6.455) / 754.133)
=0.992176 / 0.9914405
=1.0007

4. SGI = Sales Growth Index

Ratio of sales 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
=25.996 / 27.855
=0.9333

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(1.121 / (1.121 + 6.455)) / (1.213 / (1.213 + 5.468))
=0.14796727 / 0.18155965
=0.815

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(15.109 / 25.996) / (14.087 / 27.855)
=0.5812048 / 0.50572608
=1.1492

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((58.403 + 0) / 698.875) / ((88.403 + 0) / 754.133)
=0.08356716 / 0.11722468
=0.7129

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
=(-2.029 - 0 - 0.911) / 698.875
=-0.0042

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Carver Bancorp Inc has a M-score of -2.59 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Carver Bancorp Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 1.3940.71340.98860.85050.81621.14590.90311.09591.22381.0868
GMI 1111111111
AQI 1.00020.99991.00061.00430.99941.00061.00151.00121.00181.0024
SGI 1.04711.31380.92041.12550.9880.68981.10281.03840.88871.2066
DEPI 5.33370.3420.75210.90120.95480.99721.12720.96070.93560.6768
SGAI 1.04630.96731.16310.91421.07351.34820.87111.01221.11240.8055
LVGI 0.57970.89181.97371.12390.97240.42641.76740.91921.12160.7472
TATA 0.0220.0384-0.0237-0.0031-0.0618-0.0857-0.0308-0.0256-0.0058-0.0009
M-score -1.34-2.32-3.05-2.56-2.96-2.90-2.84-2.46-2.47-2.14

Carver Bancorp Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.26981.00751.22381.20831.14631.25491.08681.22940.89180.9107
GMI 1111111111
AQI 1.00131.00121.00181.00151.00241.00281.00241.00221.00141.0007
SGI 0.98991.00730.88870.92730.96451.10191.20661.2081.15420.9333
DEPI 0.97820.97720.93560.74590.95710.83920.67680.74150.66330.815
SGAI 1.1230.94231.11241.04060.97120.9150.80550.83140.91031.1492
LVGI 0.64470.61711.12160.89871.16851.27160.74720.81340.54640.7129
TATA -0.0101-0.004-0.0058-0.0023-0.0069-0.0055-0.0009-0.00090.0031-0.0042
M-score -2.20-2.35-2.47-2.37-2.46-2.27-2.14-2.03-2.30-2.59
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