Metro 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 Metro Bancorp for today is based on a combination of the following eight different indices:
| M | = | -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 * 0.9999 | + | 0.892 * 1.0675 | + | 0.115 * 0.9507 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9475 | + | 4.679 * -0.007162 | - | 0.327 * 0.6259 |
| = | -2.33 |
* 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 (Sep15) TTM: | Last Year (Sep14) TTM: |
Total Receivables was $0.0 Mil.
Revenue was 33.4 + 34.003 + 33.626 + 33.137 = $134.2 Mil.
Gross Profit was 33.4 + 34.003 + 33.626 + 33.137 = $134.2 Mil.
Total Current Assets was $48.0 Mil.
Total Assets was $2,966.2 Mil.
Property, Plant and Equipment(Net PPE) was $72.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.2 Mil.
Selling, General, & Admin. Expense(SGA) was $65.4 Mil.
Total Current Liabilities was $200.3 Mil.
Long-Term Debt & Capital Lease Obligation was $25.0 Mil.
Net Income was 4.815 + 4.177 + 5.722 + 5.559 = $20.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 12.191 + 1.081 + 10.947 + 17.298 = $41.5 Mil.
|
Total Receivables was $0.0 Mil.
Revenue was 32.484 + 31.49 + 30.413 + 31.294 = $125.7 Mil.
Gross Profit was 32.484 + 31.49 + 30.413 + 31.294 = $125.7 Mil.
Total Current Assets was $45.6 Mil.
Total Assets was $2,959.8 Mil.
Property, Plant and Equipment(Net PPE) was $74.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.1 Mil.
Selling, General, & Admin. Expense(SGA) was $64.7 Mil.
Total Current Liabilities was $359.2 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 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 / 134.166) | / | (0 / 125.681) |
| = | 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) |
| = | (125.681 / 125.681) | / | (134.166 / 134.166) |
| = | 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 - (47.995 + 72.64) / 2966.16) | / | (1 - (45.621 + 74.587) / 2959.847) |
| = | 0.95933 | / | 0.959387 |
| | = | 0.9999 |
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 |
| = | 134.166 | / | 125.681 |
| | = | 1.0675 |
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)) |
| = | (4.103 / (4.103 + 74.587)) | / | (4.215 / (4.215 + 72.64)) |
| = | 0.052141 | / | 0.054844 |
| | = | 0.9507 |
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) |
| = | (65.442 / 134.166) | / | (64.699 / 125.681) |
| = | 0.487769 | / | 0.514787 |
| | = | 0.9475 |
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) |
| = | ((25 + 200.295) / 2966.16) | / | ((0 + 359.2) / 2959.847) |
| = | 0.075955 | / | 0.121358 |
| | = | 0.6259 |
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 |
| = | (20.273 - 0 | - | 41.517) | / | 2966.16 |
| | = | -0.007162 |
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.
Metro Bancorp has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.
Metro Bancorp (Metro Bancorp) Business Description
Traded in Other Exchanges
N/A
Address
Metro Bancorp Inc was incorporated as Pennsylvania Commerce Bancorp, Inc. on April 23, 1999 and became an active bank holding company on July 1, 1999. The Company provides full banking services through its subsidiary, Metro Bank. The Bank provides retail and commercial banking services for consumers, and small and mid-sized companies in Pennsylvania. The Bank's lending and investment activities are funded mainly by retail deposits gathered through its retail store office network. It offers lending and depository services from its main store in Lemoyne, Pennsylvania, and it's thirty-two other full-service stores located in Cumberland, Dauphin, York, Berks, Lancaster and Lebanon Counties, Pennsylvania. The Bank provides various retail banking services and products including free personal checking accounts and business checking accounts, regular savings accounts, money market accounts, interest checking accounts, fixed rate certificates of deposit (CDs), individual retirement accounts, club accounts, debit card services, online banking (including bill payment services, a peer to peer payment service via Popmoney, external Account to Account transfers and same day bill payment capabilities), mobile banking, gift cards, safe deposit facilities and automated teller facilities. Its services also include lending activities including commercial and industrial, owner occupied real estate, commercial construction and land development and commercial real estate loans, consumer loan programs, home equity lines of credit, overdraft checking protection, consumer and business credit cards. The Bank also offers construction loans and permanent mortgages for homes. The Bank is a participant in the Small Business Administration (SBA) Loan Program and is an approved lender for qualified applicants. The Bank competes with local commercial banks as well as various regionally based commercial banks. The Bank competes with respect to its lending activities as well as in attracting demand, savings and time deposits with other commercial banks, savings banks, insurance companies, regulated small loan companies, credit unions and with issuers of commercial paper and other securities such as shares in money market funds. The Company is subject to the jurisdiction of the SEC and of state securities commissions for matters relating to the offering and sale of its securities and is subject to the SEC's rules and regulations relating to periodic reporting, reporting to shareholders, proxy solicitation and insider trading.
Executives
| Steven W Cribbs |
officer: Chief Risk Officer |
2212 PULLMAN WAY, HUMMELSTOWN PA 17111 |
| John Rodney Messick |
director |
105 LEADER HEIGHTS ROAD, YORK PA 17403 |
| Adam L Metz |
officer: Chief Lending Officer |
145 BRYCE ROAD, CAMP HILL PA 17011 |
| Richard J Lashley |
director |
C/O PL CAPITAL, LLC, 47 E. CHICAGO AVE., SUITE 328, NAPERVILLE IL 60540 |
| Gary L Nalbandian |
director, officer: President/CEO, other: Chairman of the Board |
100 SENATE AVENUE, CAMP HILL PA 17011 |
| Douglas R Berry |
director |
105 FOXFIRE LANE, LEWISBERRY PA 17339 |
| Steve Solk |
officer: SVP Market Manager |
C/O CIT GROUP INC., ATTN GENERAL COUNSEL 1 CIT DRIVE LIVINGSTON NJ 07039 |
| Rory G Ritrievi |
officer: Chief Lending Officer |
2407 PARK DRIVE, HARRISBURG PA 17110 |
| Hill Vernon W Ii |
director |
17000 HORIZON WAY, SUITE 100, MT. LAUREL NJ 08054 |
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