Home Federal Bancorp of louisiana (Home Federal Bancorp of louisiana) Beneish M-Score : -2.30 (As of May. 09, 2024)

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What is Home Federal Bancorp of louisiana 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 -2.3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HFBL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -2.37 Max: -1.88
Current: -2.3

During the past 13 years, the highest Beneish M-Score of Home Federal Bancorp of louisiana was -1.88. The lowest was -3.19. And the median was -2.37.

Home Federal Bancorp of louisiana 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 Home Federal Bancorp of louisiana 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 * 1.3227

0.528 * 1

0.404 * 1.001

0.892 * 1.0286

0.115 * 0.8357

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0586

4.679 * -0.003582

0.327 * 1.2984

-2.30

* 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 $1.88 Mil.
Revenue was 5.008 + 5.658 + 5.905 + 5.947 = $22.52 Mil.
Gross Profit was 5.008 + 5.658 + 5.905 + 5.947 = $22.52 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $654.19 Mil.
Property, Plant and Equipment(Net PPE) was $17.61 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.09 Mil.
Selling, General, & Admin. Expense(SGA) was $10.22 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $9.65 Mil.
Net Income was 1.003 + 1.22 + 1.258 + 1.062 = $4.54 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -2.635 + 2.445 + 3.386 + 3.69 = $6.89 Mil.

Total Receivables was $1.38 Mil.
Revenue was 5.801 + 5.799 + 5.231 + 5.06 = $21.89 Mil.
Gross Profit was 5.801 + 5.799 + 5.231 + 5.06 = $21.89 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $576.54 Mil.
Property, Plant and Equipment(Net PPE) was $16.09 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.83 Mil.
Selling, General, & Admin. Expense(SGA) was $9.38 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $6.55 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)
	=	(1.883 / 22.518)	/	(1.384 / 21.891)
	=	0.083622	/	0.063222
	=	1.3227

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)
	=	(21.891 / 21.891)	/	(22.518 / 22.518)
	=	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 + 17.605) / 654.188)	/	(1 - (0 + 16.088) / 576.543)
	=	0.973089	/	0.972096
	=	1.001

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
	=	22.518	/	21.891
	=	1.0286

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))
	=	(0.827 / (0.827 + 16.088))	/	(1.094 / (1.094 + 17.605))
	=	0.048892	/	0.058506
	=	0.8357

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)
	=	(10.216 / 22.518)	/	(9.382 / 21.891)
	=	0.453681	/	0.428578
	=	1.0586

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)
	=	((9.65 + 0) / 654.188)	/	((6.55 + 0) / 576.543)
	=	0.014751	/	0.011361
	=	1.2984

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
	=	(4.543 - 0	-	6.886)	/	654.188
	=	-0.003582

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.

Home Federal Bancorp of louisiana has a M-score of -2.30 suggests that the company is unlikely to be a manipulator.

Home Federal Bancorp of louisiana Beneish M-Score Related Terms

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Home Federal Bancorp of louisiana (Home Federal Bancorp of louisiana) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Home Federal Bancorp Inc of louisiana (NAS:HFBL) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

624 Market Street, Shreveport, LA, USA, 71101

Website

https://www.hfb.bank

Home Federal Bancorp Inc of louisiana operates as a bank holding company. It is a federally chartered stock savings bank, which provides financial services to individuals, corporate entities, and other organizations. Its core activities consist of attracting deposits from the general public and using those funds to originate loans to the residential, commercial and multi-family segments. The company also invests securities held-to-maturity and securities available for sale.

Executives

James R Barlow	director, officer: President & COO*	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101
David Barber	officer: SVP Mortgage Lending *	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101
Donna C. Lewis	officer: Senior Vice President*	HOME FEDERAL BANCORP, INC. OF LOUISIANA, 624 MARKET STREET, SHREVEPORT LA 71101
Glen W. Brown	officer: SVP & Chief Financial Officer	624 MARKET STREET, SHREVEPORT LA 71101
Colquitt Walter T Iii	director	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101
Scott D Lawrence	director	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101
Timothy W. Wilhite	director	HOME FEDERAL BANCORP, INC. OF LOUISIANA, 624 MARKET STREET, SHREVEPORT LA 71101
Clyde D Patterson	director, officer: Executive Vice President & CFO	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101
Martin S. Friedman	10 percent owner	7901 JONES BRANCH DR. SUITE 210, MCLEAN VA 22102
Woodus K Humphrey	director	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101
Mary L Jones	officer: SVP Retail & Deposit Ops.*	HOME FEDERAL BANCORP, INC. OF LOUISIANA, 624 MARKET STREET, SHREVEPORT LA 71101
Mark Malloy Harrison	director	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101
K Matthew Sawrie	officer: SVP Commercial Lending*	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101
Daniel R Herndon	director, officer: Chairman and CEO	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101
Herndon David A Iii	director	HOME FEDERAL BANK, 624 MARKET STREET, SHREVEPORT LA 71101