DWNX (Delhi Bank) Beneish M-Score : -24.68 (As of Sep. 21, 2024)

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What is Delhi Bank 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 -24.68 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

DWNX' s Beneish M-Score Range Over the Past 10 Years
Min: -24.68 Med: -2.41 Max: -2.11
Current: -24.68

During the past 11 years, the highest Beneish M-Score of Delhi Bank was -2.11. The lowest was -24.68. And the median was -2.41.

Delhi Bank 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 Delhi Bank 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

0.528 * 1

0.404 * 1.0006

0.892 * 0.9545

0.115 * 0.9029

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1681

4.679 * -0.003714

0.327 * 68.5946

-24.68

* 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 $0.00 Mil.
Revenue was $9.49 Mil.
Gross Profit was $9.49 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $371.55 Mil.
Property, Plant and Equipment(Net PPE) was $4.59 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.38 Mil.
Selling, General, & Admin. Expense(SGA) was $0.35 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $16.03 Mil.
Net Income was $1.91 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $3.29 Mil.

Total Receivables was $0.00 Mil.
Revenue was $9.94 Mil.
Gross Profit was $9.94 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $376.60 Mil.
Property, Plant and Equipment(Net PPE) was $4.88 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.37 Mil.
Selling, General, & Admin. Expense(SGA) was $0.31 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.24 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)
	=	(0 / 9.491)	/	(0 / 9.943)
	=	0	/	0
	=	1

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)
	=	(9.943 / 9.943)	/	(9.491 / 9.491)
	=	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 + 4.59) / 371.552)	/	(1 - (0 + 4.884) / 376.596)
	=	0.987646	/	0.987031
	=	1.0006

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
	=	9.491	/	9.943
	=	0.9545

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))
	=	(0.365 / (0.365 + 4.884))	/	(0.383 / (0.383 + 4.59))
	=	0.069537	/	0.077016
	=	0.9029

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)
	=	(0.349 / 9.491)	/	(0.313 / 9.943)
	=	0.036772	/	0.031479
	=	1.1681

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)
	=	((16.031 + 0) / 371.552)	/	((0.237 + 0) / 376.596)
	=	0.043146	/	0.000629
	=	68.5946

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
	=	(1.91 - 0	-	3.29)	/	371.552
	=	-0.003714

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.

Delhi Bank has a M-score of -24.68 suggests that the company is unlikely to be a manipulator.

Delhi Bank Beneish M-Score Related Terms

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Delhi Bank Business Description

Industry

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Traded in Other Exchanges

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Address

124 Main street, Delhi, NY, USA, 13753-0508

Website

https://www.dnbd.bank

Delhi Bank Corp is the holding company for The Delaware National Bank of Delhi. It provides a full range of commercial banking services to individuals and small business customers located mainly in Delaware County, New York, and the surrounding counties.