Ledyard Financial Group (Ledyard Financial Group) Beneish M-Score : -2.34 (As of Jun. 08, 2024)

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

What is Ledyard Financial Group 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 -2.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LFGP' s Beneish M-Score Range Over the Past 10 Years
Min: -8.55 Med: -2.41 Max: -1.72
Current: -2.34

During the past 13 years, the highest Beneish M-Score of Ledyard Financial Group was -1.72. The lowest was -8.55. And the median was -2.41.

Ledyard Financial Group 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 Ledyard Financial Group 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 * 1.1392

0.528 * 1

0.404 * 1.003

0.892 * 1.0489

0.115 * 0.9098

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0163

4.679 * 0.00105

0.327 * 1.0645

-2.34

* 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 $3.90 Mil.
Revenue was $31.36 Mil.
Gross Profit was $31.36 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $856.12 Mil.
Property, Plant and Equipment(Net PPE) was $13.12 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.01 Mil.
Selling, General, & Admin. Expense(SGA) was $21.68 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $129.54 Mil.
Net Income was $3.17 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $2.27 Mil.

Total Receivables was $3.27 Mil.
Revenue was $29.90 Mil.
Gross Profit was $29.90 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $743.47 Mil.
Property, Plant and Equipment(Net PPE) was $13.56 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.94 Mil.
Selling, General, & Admin. Expense(SGA) was $20.34 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $105.68 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)
	=	(3.904 / 31.362)	/	(3.267 / 29.899)
	=	0.124482	/	0.109268
	=	1.1392

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)
	=	(29.899 / 29.899)	/	(31.362 / 31.362)
	=	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 + 13.116) / 856.115)	/	(1 - (0 + 13.563) / 743.465)
	=	0.98468	/	0.981757
	=	1.003

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
	=	31.362	/	29.899
	=	1.0489

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))
	=	(0.939 / (0.939 + 13.563))	/	(1.005 / (1.005 + 13.116))
	=	0.06475	/	0.071171
	=	0.9098

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)
	=	(21.68 / 31.362)	/	(20.338 / 29.899)
	=	0.691282	/	0.680223
	=	1.0163

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)
	=	((129.538 + 0) / 856.115)	/	((105.676 + 0) / 743.465)
	=	0.151309	/	0.14214
	=	1.0645

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
	=	(3.165 - 0	-	2.266)	/	856.115
	=	0.00105

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.

Ledyard Financial Group has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.

Ledyard Financial Group Beneish M-Score Related Terms

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

Ledyard Financial Group (Ledyard Financial Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Ledyard Financial Group Inc (OTCPK:LFGP) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

2 Maple Street, Hanover, NH, USA, 03755

Website

https://www.ledyardbank.com

Ledyard Financial Group Inc is a bank holding company. The company, through its subsidiary, operates in two segments: banking and wealth advisory services. The Banking segment consists of lending to commercial and consumer customers, as well as deposit-gathering activities. The Wealth advisory services include financial planning services, investment management services, personal tax services, trustee services, and estate planning. All of its revenues come from the Banking segment.