Switch to:
GuruFocus has detected 5 Warning Signs with Midsouth Bancorp Inc $MSL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Midsouth Bancorp Inc (NYSE:MSL)
Beneish M-Score
-2.42 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Midsouth Bancorp Inc has a M-score of -2.42 suggests that the company is not a manipulator.

MSL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.77   Max: 0.47
Current: -2.42

-3.77
0.47

During the past 13 years, the highest Beneish M-Score of Midsouth Bancorp Inc was 0.47. The lowest was -3.77. And the median was -2.39.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Midsouth Bancorp Inc 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 * 1.1498+0.528 * 1+0.404 * 1.0005+0.892 * 0.9714+0.115 * 1.0311
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0759+4.679 * -0.0095-0.327 * 0.9817
=-2.42

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $7.52 Mil.
Revenue was 23.11 + 23.306 + 23.405 + 22.864 = $92.69 Mil.
Gross Profit was 23.11 + 23.306 + 23.405 + 22.864 = $92.69 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,934.94 Mil.
Property, Plant and Equipment(Net PPE) was $68.22 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.90 Mil.
Selling, General & Admin. Expense(SGA) was $36.94 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $47.49 Mil.
Net Income was 2.491 + 2.199 + 2.398 + 2.493 = $9.58 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 8.247 + 5.573 + 2.449 + 11.643 = $27.91 Mil.
Accounts Receivable was $6.73 Mil.
Revenue was 22.871 + 23.112 + 23.909 + 25.518 = $95.41 Mil.
Gross Profit was 22.871 + 23.112 + 23.909 + 25.518 = $95.41 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $1,916.55 Mil.
Property, Plant and Equipment(Net PPE) was $68.48 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.13 Mil.
Selling, General & Admin. Expense(SGA) was $35.34 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt was $47.91 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(7.516 / 92.685) / (6.729 / 95.41)
=0.08109187 / 0.0705272
=1.1498

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)
=(95.41 / 95.41) / (92.685 / 92.685)
=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 plant, property 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 + 68.216) / 1934.939) / (1 - (0 + 68.482) / 1916.551)
=0.96474514 / 0.9642681
=1.0005

4. SGI = Sales Growth Index

Ratio of sales 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
=92.685 / 95.41
=0.9714

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(6.125 / (6.125 + 68.482)) / (5.901 / (5.901 + 68.216))
=0.08209685 / 0.07961736
=1.0311

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(36.939 / 92.685) / (35.344 / 95.41)
=0.39854345 / 0.37044335
=1.0759

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((47.485 + 0) / 1934.939) / ((47.911 + 0) / 1916.551)
=0.02454083 / 0.02499855
=0.9817

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
=(9.581 - 0 - 27.912) / 1934.939
=-0.0095

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Midsouth Bancorp Inc has a M-score of -2.42 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Midsouth Bancorp Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.27230.86930.89190.95011.15580.99150.73450.94071.0351.201
GMI 1111111111
AQI 0.99181.00271.00361.00351.00480.99760.9951.00311.00031.0004
SGI 3.8451.07181.00651.01311.04821.20351.36161.0540.96020.9566
DEPI 1.03151.02660.90751.02451.21271.20770.79030.89620.97321.0364
SGAI 0.31771.04321.02350.93741.00860.95041.01830.95280.99191.0807
LVGI 2.06161.80310.67760.89540.18722.85390.97590.81110.99580.9831
TATA -0.0067-0.008-0.0069-0.0115-0.0063-0.0045-0.0063-0.0055-0.0094-0.009
M-score -0.87-2.84-2.51-2.52-2.03-2.90-2.45-2.45-2.53-2.38

Midsouth Bancorp Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.94071.05411.06661.03681.0351.02451.01991.13481.2011.1498
GMI 1111111111
AQI 1.00311.00361.00241.00291.00030.99920.99990.99911.00041.0005
SGI 1.0540.98460.99990.96570.96020.97430.93630.94840.95660.9714
DEPI 0.89620.90340.92090.93780.97320.98591.01311.05311.03641.0311
SGAI 0.95281.02741.04421.12310.99190.97130.98260.95861.08071.0759
LVGI 0.81111.22381.52290.94980.99580.68010.54921.00150.98310.9817
TATA -0.0055-0.0071-0.0063-0.009-0.0094-0.008-0.0134-0.0091-0.009-0.0095
M-score -2.45-2.56-2.64-2.53-2.53-2.41-2.43-2.43-2.38-2.42
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK