Community Bancorp Ofnta Maria (Community Bancorp Ofnta Maria) Beneish M-Score : -2.56 (As of Apr. 28, 2024)

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What is Community Bancorp Ofnta Maria 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 -2.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CYSM' s Beneish M-Score Range Over the Past 10 Years
Min: -3219.82 Med: -2.56 Max: 1.84
Current: -2.56

During the past 13 years, the highest Beneish M-Score of Community Bancorp Ofnta Maria was 1.84. The lowest was -3219.82. And the median was -2.56.

Community Bancorp Ofnta Maria 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 Community Bancorp Ofnta Maria 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 * 0.8089

0.528 * 1

0.404 * 1.0979

0.892 * 1.0745

0.115 * 0.9441

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9568

4.679 * -0.002279

0.327 * 1.01

-2.56

* 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 $7.61 Mil.
Revenue was $15.53 Mil.
Gross Profit was $15.53 Mil.
Total Current Assets was $144.22 Mil.
Total Assets was $391.82 Mil.
Property, Plant and Equipment(Net PPE) was $4.36 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.32 Mil.
Selling, General, & Admin. Expense(SGA) was $7.07 Mil.
Total Current Liabilities was $2.60 Mil.
Long-Term Debt & Capital Lease Obligation was $4.32 Mil.
Net Income was $3.93 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $4.82 Mil.

Total Receivables was $8.76 Mil.
Revenue was $14.45 Mil.
Gross Profit was $14.45 Mil.
Total Current Assets was $168.74 Mil.
Total Assets was $398.71 Mil.
Property, Plant and Equipment(Net PPE) was $4.52 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.31 Mil.
Selling, General, & Admin. Expense(SGA) was $6.87 Mil.
Total Current Liabilities was $2.67 Mil.
Long-Term Debt & Capital Lease Obligation was $4.29 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)
	=	(7.614 / 15.525)	/	(8.76 / 14.449)
	=	0.490435	/	0.60627
	=	0.8089

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)
	=	(14.449 / 14.449)	/	(15.525 / 15.525)
	=	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 - (144.223 + 4.357) / 391.821)	/	(1 - (168.742 + 4.519) / 398.705)
	=	0.620796	/	0.565441
	=	1.0979

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
	=	15.525	/	14.449
	=	1.0745

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))
	=	(0.314 / (0.314 + 4.519))	/	(0.322 / (0.322 + 4.357))
	=	0.06497	/	0.068818
	=	0.9441

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)
	=	(7.067 / 15.525)	/	(6.874 / 14.449)
	=	0.455201	/	0.475742
	=	0.9568

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)
	=	((4.319 + 2.595) / 391.821)	/	((4.294 + 2.672) / 398.705)
	=	0.017646	/	0.017472
	=	1.01

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
	=	(3.926 - 0	-	4.819)	/	391.821
	=	-0.002279

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.

Community Bancorp Ofnta Maria has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.

Community Bancorp Ofnta Maria Beneish M-Score Related Terms

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Community Bancorp Ofnta Maria (Community Bancorp Ofnta Maria) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Community Bancorp Of Santa Maria (OTCPK:CYSM) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2739 Santa Maria Way, PO Box 5307, Santa Maria, CA, USA, 93456

Website

https://www.yourcbsm.com

Community Bancorp Of Santa Maria is a banking institution. The bank provides banking products and services. Community Bancorp has been organized as a single operating segment. Its primary source of revenue is providing loans to customers, who are predominately small and middle-market businesses and individuals. Its Money Market Savings account offers the benefits of interest-bearing savings account along with the convenience of a checking account. Business NOW Account offers unlimited check writing privileges.