Malvern Bancorp (Malvern Bancorp) Beneish M-Score : -2.19 (As of Apr. 26, 2024)

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What is Malvern 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 -2.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MLVF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78 Med: -2.33 Max: -1.87
Current: -2.19

During the past 13 years, the highest Beneish M-Score of Malvern Bancorp was -1.87. The lowest was -2.78. And the median was -2.33.

Malvern 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 Malvern 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 * 1.3442

0.528 * 1

0.404 * 1.0959

0.892 * 1.0329

0.115 * 0.8738

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0211

4.679 * 0.002924

0.327 * 1.2904

-2.19

* 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 (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was $4.83 Mil.
Revenue was 7.257 + 8.239 + 8.466 + 7.775 = $31.74 Mil.
Gross Profit was 7.257 + 8.239 + 8.466 + 7.775 = $31.74 Mil.
Total Current Assets was $84.48 Mil.
Total Assets was $996.30 Mil.
Property, Plant and Equipment(Net PPE) was $4.68 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.14 Mil.
Selling, General, & Admin. Expense(SGA) was $11.22 Mil.
Total Current Liabilities was $1.25 Mil.
Long-Term Debt & Capital Lease Obligation was $100.00 Mil.
Net Income was 0.571 + 1.908 + 2.578 + 1.834 = $6.89 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.189 + 7.004 + 4.352 + -8.567 = $3.98 Mil.

Total Receivables was $3.48 Mil.
Revenue was 7.515 + 7.885 + 7.404 + 7.922 = $30.73 Mil.
Gross Profit was 7.515 + 7.885 + 7.404 + 7.922 = $30.73 Mil.
Total Current Assets was $179.68 Mil.
Total Assets was $1,103.60 Mil.
Property, Plant and Equipment(Net PPE) was $7.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.45 Mil.
Selling, General, & Admin. Expense(SGA) was $10.64 Mil.
Total Current Liabilities was $0.35 Mil.
Long-Term Debt & Capital Lease Obligation was $86.56 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)
	=	(4.829 / 31.737)	/	(3.478 / 30.726)
	=	0.152157	/	0.113194
	=	1.3442

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)
	=	(30.726 / 30.726)	/	(31.737 / 31.737)
	=	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 - (84.483 + 4.684) / 996.3)	/	(1 - (179.684 + 7.009) / 1103.596)
	=	0.910502	/	0.830832
	=	1.0959

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
	=	31.737	/	30.726
	=	1.0329

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))
	=	(1.451 / (1.451 + 7.009))	/	(1.144 / (1.144 + 4.684))
	=	0.171513	/	0.196294
	=	0.8738

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)
	=	(11.222 / 31.737)	/	(10.64 / 30.726)
	=	0.353594	/	0.346287
	=	1.0211

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)
	=	((100 + 1.246) / 996.3)	/	((86.556 + 0.352) / 1103.596)
	=	0.101622	/	0.07875
	=	1.2904

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
	=	(6.891 - 0	-	3.978)	/	996.3
	=	0.002924

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.

Malvern Bancorp has a M-score of -2.19 suggests that the company is unlikely to be a manipulator.

Malvern Bancorp Beneish M-Score Related Terms

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Malvern Bancorp (Malvern Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Malvern Bancorp Inc (NAS:MLVF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

42 East Lancaster Avenue, Paoli, PA, USA, 19301

Website

https://ir.malvernbancorp.com

Malvern Bancorp Inc operates several financial centers as well as an online banking site. The company provides checking and savings accounts, and in turn issues loans for commercial and residential real estate projects. Malvern's customer base consists of individual clients along with small and mid-sized businesses in the area.

Executives

Stephen P Scartozzi	director	MALVERN BANCORP, INC., 42 EAST LANCASTER AVENUE, PAOLI PA 19301
Cynthia F Leitzell	director	42 E. LANCASTER AVE, PAOLI PA 19031
Norman Feinstein	director	2901 BUTTERFIELD ROAD, OAK BROOK IL 60523
Andrew D. Fish	director	93 WORTH STREET, SUITE 1005, NEW YORK PA 10013
Julia D Corelli	director	42 E. LANCASTER AVE, PAOLI PA 19031
Howard Kent	director	42 E. LANCASTER AVE, PAOLI PA 19031
James W Barrett	director	42 E. LANCASTER AVE, PAOLI PA 19301
Anthony Weagley	director, officer: President & CEO	C/O CENTER BANCORP INC, 2455 MORRIS AVENUE, UNION NJ 07083
William Iii Woolworth	officer: SVP & CRO	42 E. LANCASTER AVENUE, PAOLI PA 19301
William J Boylan	officer: EVP & Chief Lending Officer	58 RIDGE DRIVE, MONTVILLE NJ 07045
Therese Woodman	director	MALVERN FEDERAL BANCORP INC., 42 EAST LANCASTER AVENUE, PAOLI PA 19301
Joseph D Gangemi	officer: SVP & CFO	326 SEQUOIA COURT, HOWELL NJ 07731
George E Steinmetz	director	MALVERN FEDERAL BANCORP INC, 42 EAST LANCASTER AVENUE, PAOLI PA 19301
Mary Orlando	officer: SZP & COO	42 E LANCASTER AVENUE, PAOLI PA 19301-1455
Justin Power	officer: SZP & CLO	42 E LANCASTER AVENUE, PAOLI PA 19301-1455