HCBC (High Country Bancorp) Beneish M-Score : -2.55 (As of Mar. 16, 2025)

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What is High Country 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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HCBC' s Beneish M-Score Range Over the Past 10 Years
Min: -49.24 Med: -2.36 Max: 0.92
Current: -2.55

During the past 13 years, the highest Beneish M-Score of High Country Bancorp was 0.92. The lowest was -49.24. And the median was -2.36.

High Country 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 High Country 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 * 1.2389

0.528 * 1

0.404 * 1.0022

0.892 * 0.9911

0.115 * 1.1341

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0264

4.679 * -0.004554

0.327 * 1.8314

-2.55

* 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 (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was $1.94 Mil.
Revenue was $20.59 Mil.
Gross Profit was $20.59 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $480.43 Mil.
Property, Plant and Equipment(Net PPE) was $6.21 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.74 Mil.
Selling, General, & Admin. Expense(SGA) was $10.35 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $45.40 Mil.
Net Income was $3.25 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $5.44 Mil.

Total Receivables was $1.58 Mil.
Revenue was $20.77 Mil.
Gross Profit was $20.77 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $439.93 Mil.
Property, Plant and Equipment(Net PPE) was $6.63 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.91 Mil.
Selling, General, & Admin. Expense(SGA) was $10.18 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $22.70 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)
	=	(1.94 / 20.587)	/	(1.58 / 20.772)
	=	0.094234	/	0.076064
	=	1.2389

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)
	=	(20.772 / 20.772)	/	(20.587 / 20.587)
	=	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 + 6.208) / 480.432)	/	(1 - (0 + 6.626) / 439.928)
	=	0.987078	/	0.984938
	=	1.0022

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
	=	20.587	/	20.772
	=	0.9911

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))
	=	(0.914 / (0.914 + 6.626))	/	(0.743 / (0.743 + 6.208))
	=	0.12122	/	0.106891
	=	1.1341

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)
	=	(10.351 / 20.587)	/	(10.175 / 20.772)
	=	0.502793	/	0.489842
	=	1.0264

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)
	=	((45.4 + 0) / 480.432)	/	((22.7 + 0) / 439.928)
	=	0.094498	/	0.051599
	=	1.8314

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
	=	(3.253 - 0	-	5.441)	/	480.432
	=	-0.004554

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.

High Country Bancorp has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.

High Country Bancorp Beneish M-Score Related Terms

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High Country Bancorp Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » High Country Bancorp Inc (OTCPK:HCBC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

7360 West US Highway 50, P.O. Box 309, Salida, CO, USA, 81201

Website

https://www.highcountrybank.net

High Country Bancorp Inc is a full-service financial institution delivering banking and investment solutions for both consumers and businesses. Its primary deposit products are non interest-bearing and interest-bearing checking accounts, savings accounts and time deposit accounts, and its primary lending products are real estate mortgage loans, construction, consumer, and commercial loans.

Executives

Lorin D Smith	director, officer: President & CEO
Scott G Erchul	director, officer: Vice President
Frances Pasquale	officer: Acting CFO	7360 WEST US HIGHWAY 50, SALIDA CO 81201
Young Richard A /co	director
Philip W Harsh	director	7360 WEST US HIGHWAY 50, SALIDA CO 81201