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CNBN (CNB Bancshares) Beneish M-Score : -2.70 (As of Mar. 17, 2025)


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What is CNB Bancshares 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CNBN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.18   Med: -2.46   Max: -2.2
Current: -2.7

During the past 8 years, the highest Beneish M-Score of CNB Bancshares was -2.20. The lowest was -3.18. And the median was -2.46.


CNB Bancshares 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 CNB Bancshares 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 * 1.0163+0.528 * 1+0.404 * 1.001+0.892 * 1.0491+0.115 * 0.753
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0056+4.679 * -0.00372-0.327 * 1.7128
=-2.70

* 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 $14.43 Mil.
Revenue was 16.917 + 16.009 + 15.334 + 15.412 = $63.67 Mil.
Gross Profit was 16.917 + 16.009 + 15.334 + 15.412 = $63.67 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,776.19 Mil.
Property, Plant and Equipment(Net PPE) was $17.60 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.92 Mil.
Selling, General, & Admin. Expense(SGA) was $27.82 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $91.09 Mil.
Net Income was 3.397 + 4.215 + 3.458 + 3.966 = $15.04 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 5.095 + 5.708 + 5.771 + 5.069 = $21.64 Mil.
Total Receivables was $13.54 Mil.
Revenue was 16.708 + 15.356 + 13.986 + 14.64 = $60.69 Mil.
Gross Profit was 16.708 + 15.356 + 13.986 + 14.64 = $60.69 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,640.06 Mil.
Property, Plant and Equipment(Net PPE) was $17.87 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.43 Mil.
Selling, General, & Admin. Expense(SGA) was $26.37 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $49.10 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)
=(14.433 / 63.672) / (13.536 / 60.69)
=0.226677 / 0.223035
=1.0163

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)
=(60.69 / 60.69) / (63.672 / 63.672)
=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 + 17.604) / 1776.186) / (1 - (0 + 17.867) / 1640.064)
=0.990089 / 0.989106
=1.001

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
=63.672 / 60.69
=1.0491

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))
=(1.431 / (1.431 + 17.867)) / (1.923 / (1.923 + 17.604))
=0.074153 / 0.098479
=0.753

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)
=(27.823 / 63.672) / (26.373 / 60.69)
=0.436974 / 0.434553
=1.0056

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)
=((91.085 + 0) / 1776.186) / ((49.103 + 0) / 1640.064)
=0.051281 / 0.02994
=1.7128

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
=(15.036 - 0 - 21.643) / 1776.186
=-0.00372

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.

CNB Bancshares has a M-score of -2.70 suggests that the company is unlikely to be a manipulator.


CNB Bancshares Beneish M-Score Related Terms

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CNB Bancshares Business Description

Traded in Other Exchanges
N/A
Address
450 West Side Square, Carlinville, IL, USA, 62626
CNB Bancshares Inc is a United States-based company engaged in the provision of a full range of banking services to individual and corporate customers throughout South-Central Illinois, Suburban Southwestern Chicago, and the St. Louis metropolitan area. It carries the business through its wholly-owned subsidiary bank. The services offered include checking, savings accounts, loans and credits, trust and estate services, and farm management, among others.