Cullman Bancorp (Cullman Bancorp) Beneish M-Score : -2.58 (As of May. 02, 2024)

View and export this data going back to 2009. Start your Free Trial

What is Cullman 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.

Good Sign:

Beneish M-Score -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CULL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.58 Med: -2.48 Max: -2.06
Current: -2.58

During the past 9 years, the highest Beneish M-Score of Cullman Bancorp was -2.06. The lowest was -2.58. And the median was -2.48.

Cullman 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 Cullman 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 * 1.0817

0.528 * 1

0.404 * 0.9971

0.892 * 1.0025

0.115 * 0.9212

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0252

4.679 * -0.004635

0.327 * 1.4403

-2.58

* 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 $1.26 Mil.
Revenue was 4.113 + 4.261 + 4.253 + 4.265 = $16.89 Mil.
Gross Profit was 4.113 + 4.261 + 4.253 + 4.265 = $16.89 Mil.
Total Current Assets was $34.00 Mil.
Total Assets was $411.64 Mil.
Property, Plant and Equipment(Net PPE) was $13.96 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.47 Mil.
Selling, General, & Admin. Expense(SGA) was $8.07 Mil.
Total Current Liabilities was $0.24 Mil.
Long-Term Debt & Capital Lease Obligation was $35.00 Mil.
Net Income was 0.83 + 1.08 + 1.028 + 1.015 = $3.95 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.474 + 2.435 + 1.485 + 1.467 = $5.86 Mil.

Total Receivables was $1.16 Mil.
Revenue was 4.428 + 4.364 + 4.308 + 3.75 = $16.85 Mil.
Gross Profit was 4.428 + 4.364 + 4.308 + 3.75 = $16.85 Mil.
Total Current Assets was $37.38 Mil.
Total Assets was $423.23 Mil.
Property, Plant and Equipment(Net PPE) was $10.85 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.34 Mil.
Selling, General, & Admin. Expense(SGA) was $7.85 Mil.
Total Current Liabilities was $0.16 Mil.
Long-Term Debt & Capital Lease Obligation was $25.00 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)
	=	(1.26 / 16.892)	/	(1.162 / 16.85)
	=	0.074592	/	0.068961
	=	1.0817

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)
	=	(16.85 / 16.85)	/	(16.892 / 16.892)
	=	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 - (34.002 + 13.957) / 411.641)	/	(1 - (37.378 + 10.851) / 423.229)
	=	0.883493	/	0.886045
	=	0.9971

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
	=	16.892	/	16.85
	=	1.0025

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))
	=	(0.335 / (0.335 + 10.851))	/	(0.469 / (0.469 + 13.957))
	=	0.029948	/	0.032511
	=	0.9212

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)
	=	(8.067 / 16.892)	/	(7.849 / 16.85)
	=	0.477563	/	0.465816
	=	1.0252

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)
	=	((35 + 0.239) / 411.641)	/	((25 + 0.155) / 423.229)
	=	0.085606	/	0.059436
	=	1.4403

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
	=	(3.953 - 0	-	5.861)	/	411.641
	=	-0.004635

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.

Cullman Bancorp has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.

Cullman Bancorp Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Cullman Bancorp's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Cullman Bancorp (Cullman Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Cullman Bancorp Inc (NAS:CULL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

316 Second Avenue S.W, Cullman, AL, USA, 35055

Website

https://www.cullmansavingsbank.com

Cullman Bancorp Inc through a subsidiary accepts deposits and offers one- to four-family residential real estate loans, commercial real estate loans and commercial and industrial loans and, to a lesser extent, construction loans, multi-family real estate loans and consumer loans. The revenue is derived principally from the interest on loans and securities, loan origination and servicing fees and fees levied on deposit accounts. Geographically the activities are carried out through the United States.

Executives

Paul D Bussman	director	316 SECOND AVENUE S.W., CULLMAN AL 35055
Nancy Mcclellan	director	316 SECOND AVENUE S.W., CULLMAN AL 35055
Riley John A Iii	director, officer: President & CEO	316 SECOND AVENUE S.W., CULLMAN AL 35055
Robin Parson	director, officer: Executive Vice President	316 SECOND AVENUE S.W., CULLMAN AL 35055
Lynne Morton	director	316 SECOND AVENUE, SW, CULLMAN AL 35055
Katrina I Stephens	officer: SVP and CFO	316 SECOND AVENUE, SW, CULLMAN AL 35055
T Aira Ugarkovich	officer: EVP and COO	316 SECOND AVENUE, SW, CULLMAN AL 35055
Gregory T Barksdale	director	316 SECOND AVENUE, SW, CULLMAN AL 35055
Chad T Burks	director	316 SECOND AVENUE, SW, CULLMAN AL 35055