Liberty Bancorp (Liberty Bancorp) Beneish M-Score : 0.00 (As of May. 27, 2024)

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What is Liberty 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.

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

During the past 8 years, the highest Beneish M-Score of Liberty Bancorp was 0.00. The lowest was 0.00. And the median was 0.00.

Liberty 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 Liberty 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 * 0.6224

0.528 * 1

0.404 * 1.0018

0.892 * 1.276

0.115 * 0.8255

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.999

4.679 * -0.019078

0.327 * 0.8274

-2.63

* 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 (Dec09) TTM:

Last Year (Dec08) TTM:

Total Receivables was $1.51 Mil.
Revenue was 4.558 + 4.463 + 4.107 + 3.774 = $16.90 Mil.
Gross Profit was 4.558 + 4.463 + 4.107 + 3.774 = $16.90 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $406.33 Mil.
Property, Plant and Equipment(Net PPE) was $12.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.91 Mil.
Selling, General, & Admin. Expense(SGA) was $6.52 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $65.22 Mil.
Net Income was 1.005 + 0.325 + 0.471 + 0.374 = $2.18 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 4.214 + 5.566 + -1.662 + 1.809 = $9.93 Mil.

Total Receivables was $1.90 Mil.
Revenue was 3.36 + 3.331 + 3.465 + 3.09 = $13.25 Mil.
Gross Profit was 3.36 + 3.331 + 3.465 + 3.09 = $13.25 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $387.71 Mil.
Property, Plant and Equipment(Net PPE) was $12.67 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.75 Mil.
Selling, General, & Admin. Expense(SGA) was $5.12 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $75.22 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)
	=	(1.509 / 16.902)	/	(1.9 / 13.246)
	=	0.089279	/	0.14344
	=	0.6224

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)
	=	(13.246 / 13.246)	/	(16.902 / 16.902)
	=	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 + 12.581) / 406.325)	/	(1 - (0 + 12.665) / 387.71)
	=	0.969037	/	0.967334
	=	1.0018

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
	=	16.902	/	13.246
	=	1.276

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))
	=	(0.75 / (0.75 + 12.665))	/	(0.914 / (0.914 + 12.581))
	=	0.055908	/	0.067729
	=	0.8255

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)
	=	(6.52 / 16.902)	/	(5.115 / 13.246)
	=	0.385753	/	0.386154
	=	0.999

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)
	=	((65.223 + 0) / 406.325)	/	((75.216 + 0) / 387.71)
	=	0.160519	/	0.194001
	=	0.8274

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
	=	(2.175 - 0	-	9.927)	/	406.325
	=	-0.019078

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.

Liberty Bancorp has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.

Liberty Bancorp Beneish M-Score Related Terms

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Liberty Bancorp (Liberty Bancorp) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

N/A

Address

16 West Franklin Street, Liberty, MO, USA, 64068

Website

http://www.LibertySB.com

Liberty Bancorp, Inc. is a holding company for BankLiberty, which provides financial services to consumers and businesses within its market area.

Executives

Mark E Hecker

officer: Sr. VP & Chief Lending Officer

16 WEST FRANKLIN STREET, LIBERTY MO 64068