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MSBC (Mission Bancorp) Beneish M-Score : -2.56 (As of Dec. 14, 2024)


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What is Mission 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 -2.56 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MSBC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.56   Med: -2.35   Max: -1.83
Current: -2.56

During the past 12 years, the highest Beneish M-Score of Mission Bancorp was -1.83. The lowest was -2.56. And the median was -2.35.


Mission 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 Mission 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 * 1+0.892 * 1.2128+0.115 * 1.0305
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1296+4.679 * -0.001324-0.327 * 1.7402
=-2.56

* 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 $0.00 Mil.
Revenue was $74.70 Mil.
Gross Profit was $74.70 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,651.97 Mil.
Property, Plant and Equipment(Net PPE) was $3.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.75 Mil.
Selling, General, & Admin. Expense(SGA) was $6.52 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $41.86 Mil.
Net Income was $30.47 Mil.
Gross Profit was $0.00 Mil.
Cash Flow from Operations was $32.66 Mil.
Total Receivables was $0.00 Mil.
Revenue was $61.59 Mil.
Gross Profit was $61.59 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,496.53 Mil.
Property, Plant and Equipment(Net PPE) was $2.95 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.73 Mil.
Selling, General, & Admin. Expense(SGA) was $4.76 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $21.79 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 / 74.699) / (0 / 61.593)
=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)
=(61.593 / 61.593) / (74.699 / 74.699)
=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 + 3.175) / 1651.969) / (1 - (0 + 2.949) / 1496.526)
=0.998078 / 0.998029
=1

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
=74.699 / 61.593
=1.2128

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))
=(0.725 / (0.725 + 2.949)) / (0.752 / (0.752 + 3.175))
=0.197333 / 0.191495
=1.0305

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)
=(6.521 / 74.699) / (4.76 / 61.593)
=0.087297 / 0.077282
=1.1296

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)
=((41.863 + 0) / 1651.969) / ((21.792 + 0) / 1496.526)
=0.025341 / 0.014562
=1.7402

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
=(30.469 - 0 - 32.656) / 1651.969
=-0.001324

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.

Mission Bancorp has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.


Mission Bancorp Beneish M-Score Related Terms

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Mission Bancorp Business Description

Traded in Other Exchanges
N/A
Address
1301 17th Street, Bakersfield, CA, USA, 93301
Mission Bancorp through its wholly owned subsidiary Mission Bank is a single bank holding company. The company offers a full range of commercial banking services primarily to the business and professional community and individuals.