MSBB (Mercer Bancorp) Beneish M-Score : -8.43 (As of Mar. 03, 2025)

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What is Mercer 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 -8.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MSBB' s Beneish M-Score Range Over the Past 10 Years
Min: -8.43 Med: -1.85 Max: -1.58
Current: -8.43

During the past 3 years, the highest Beneish M-Score of Mercer Bancorp was -1.58. The lowest was -8.43. And the median was -1.85.

Mercer 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 Mercer 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 * 1.105

0.528 * 1

0.404 * 1.0001

0.892 * 1.0798

0.115 * 0.9891

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0261

4.679 * 0.037711

0.327 * 20.2376

-8.43

* 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 (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was $0.63 Mil.
Revenue was 1.663 + 1.47 + 1.573 + 1.477 = $6.18 Mil.
Gross Profit was 1.663 + 1.47 + 1.573 + 1.477 = $6.18 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $180.85 Mil.
Property, Plant and Equipment(Net PPE) was $2.75 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.36 Mil.
Selling, General, & Admin. Expense(SGA) was $2.81 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $22.00 Mil.
Net Income was 0.276 + 0.245 + 0.145 + 0.129 = $0.80 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.014 + -1.136 + -2.655 + -2.22 = $-6.03 Mil.

Total Receivables was $0.53 Mil.
Revenue was 1.474 + 1.297 + 1.501 + 1.454 = $5.73 Mil.
Gross Profit was 1.474 + 1.297 + 1.501 + 1.454 = $5.73 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $166.37 Mil.
Property, Plant and Equipment(Net PPE) was $2.55 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.33 Mil.
Selling, General, & Admin. Expense(SGA) was $2.54 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $1.00 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)
	=	(0.63 / 6.183)	/	(0.528 / 5.726)
	=	0.101892	/	0.092211
	=	1.105

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)
	=	(5.726 / 5.726)	/	(6.183 / 6.183)
	=	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 + 2.75) / 180.85)	/	(1 - (0 + 2.553) / 166.37)
	=	0.984794	/	0.984655
	=	1.0001

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
	=	6.183	/	5.726
	=	1.0798

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))
	=	(0.331 / (0.331 + 2.553))	/	(0.361 / (0.361 + 2.75))
	=	0.114771	/	0.11604
	=	0.9891

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)
	=	(2.81 / 6.183)	/	(2.536 / 5.726)
	=	0.454472	/	0.442892
	=	1.0261

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)
	=	((22 + 0) / 180.85)	/	((1 + 0) / 166.37)
	=	0.121648	/	0.006011
	=	20.2376

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
	=	(0.795 - 0	-	-6.025)	/	180.85
	=	0.037711

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.

Mercer Bancorp has a M-score of -8.43 suggests that the company is unlikely to be a manipulator.

Mercer Bancorp Beneish M-Score Related Terms

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Mercer Bancorp Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

N/A

Address

1100 Irmscher Boulevard, Celina, OH, USA, 45822

Website

https://www.mercersavings.com

Mercer Bancorp Inc operates as a full-service bank. It offers deposits, loans, and other services. The loan portfolio consists of residential mortgage loans secured by one- to four-family residential properties and agricultural real estate loans secured by farmland located in primary market area. It also operates in multifamily real estate loans, commercial real estate loans, construction and land loans, home equity lines of credit, commercial and industrial loans, and consumer loans. Geographically, it operates in Mercer and Darke Counties in western Ohio and contiguous areas, including Adams and Jay Counties in eastern Indiana.

Executives

Alvin B Parmiter	director, officer: President and CEO	425 MAIN STREET, CALDWELL OH 43724
Kristin M Fee	director	1100 IRMSCHER BLVD, CELINA OH 45822
Rick L Ross	officer: Treasurer	1100 IRMSCHER BLVD, CELINA OH 45822
Richard A Mosier	director	1100 IRMSCHER BLVD, CELINA OH 45822
Trever A Bransteter	officer: SVP, Lending	1100 IRMSCHER BLVD, CELINA OH 45822
Ryan Moorman	officer: SVP, Lending	1100 IRMSCHER BLVD, CELINA OH 45822
Timothy L Bigham	officer: SVP, Operations	1100 IRMSCHER BLVD, CELINA OH 45822
Jose W Faller	director	1100 IRMSCHER BLVD, CELINA OH 45822
Michael J Boley	director	1100 IRMSCHER BLVD, CELINA OH 45822
David L Keiser	director	1100 IRMSCHER BLVD, CELINA OH 45822