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National Bankshares Beneish M-Score

: -2.38 (As of Today)
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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 -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NKSH' s Beneish M-Score Range Over the Past 10 Years
Min: -222.95   Med: -2.41   Max: -1.71
Current: -2.38

During the past 13 years, the highest Beneish M-Score of National Bankshares was -1.71. The lowest was -222.95. And the median was -2.41.


National Bankshares Beneish M-Score Historical Data

The historical data trend for National Bankshares's Beneish M-Score can be seen below:

* 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.

* Premium members only.

National Bankshares Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.49 -2.70 -2.81 -2.11 -2.41

National Bankshares Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.22 -2.36 -2.41 -2.46 -2.38

Competitive Comparison

For the Banks - Regional subindustry, National Bankshares's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

National Bankshares Beneish M-Score Distribution

For the Banks industry and Financial Services sector, National Bankshares's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where National Bankshares's Beneish M-Score falls into.



National Bankshares 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 National Bankshares 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 * 0.9602+0.528 * 1+0.404 * 1.0277+0.892 * 1.0871+0.115 * 1.0991
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9621+4.679 * -0.0001-0.327 * 0.9207
=-2.38

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $5.51 Mil.
Revenue was 13.387 + 12.686 + 13.021 + 12.929 = $52.02 Mil.
Gross Profit was 13.387 + 12.686 + 13.021 + 12.929 = $52.02 Mil.
Total Current Assets was $795.37 Mil.
Total Assets was $1,729.59 Mil.
Property, Plant and Equipment(Net PPE) was $9.77 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.61 Mil.
Selling, General, & Admin. Expense(SGA) was $19.40 Mil.
Total Current Liabilities was $0.05 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 Mil.
Net Income was 5.574 + 4.886 + 5.251 + 5.752 = $21.46 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 3.363 + 6.685 + 5.203 + 6.47 = $21.72 Mil.
Total Receivables was $5.28 Mil.
Revenue was 12.004 + 12.361 + 12.277 + 11.214 = $47.86 Mil.
Gross Profit was 12.004 + 12.361 + 12.277 + 11.214 = $47.86 Mil.
Total Current Assets was $787.55 Mil.
Total Assets was $1,661.65 Mil.
Property, Plant and Equipment(Net PPE) was $9.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.68 Mil.
Selling, General, & Admin. Expense(SGA) was $18.55 Mil.
Total Current Liabilities was $0.05 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
=(5.506 / 52.023) / (5.275 / 47.856)
=0.1058378 / 0.11022651
=0.9602

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)
=(47.856 / 47.856) / (52.023 / 52.023)
=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 - (795.367 + 9.773) / 1729.588) / (1 - (787.552 + 9.896) / 1661.652)
=0.53449029 / 0.52008724
=1.0277

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
=52.023 / 47.856
=1.0871

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))
=(0.682 / (0.682 + 9.896)) / (0.609 / (0.609 + 9.773))
=0.06447344 / 0.05865922
=1.0991

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)
=(19.401 / 52.023) / (18.55 / 47.856)
=0.3729312 / 0.3876212
=0.9621

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)
=((0 + 0.046) / 1729.588) / ((0 + 0.048) / 1661.652)
=2.66E-5 / 2.889E-5
=0.9207

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
=(21.463 - 0 - 21.721) / 1729.588
=-0.0001

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.

National Bankshares has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.


National Bankshares Beneish M-Score Related Terms

Thank you for viewing the detailed overview of National Bankshares's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


National Bankshares Business Description

National Bankshares logo
Traded in Other Exchanges
Address
101 Hubbard Street, Blacksburg, VA, USA, 24062-9002
National Bankshares Inc is a bank holding company of National Bank of Blacksburg, offering a range of financial products and services, including deposit accounts, commercial, consumer, and mortgage loans, credit cards, and trust services. The bank focuses on lending to small and mid-sized businesses and individuals. The types of loans it offers include commercial and agricultural, commercial real estate, construction for commercial and residential properties, residential real estate, home equity, and various consumer loan products. It also operates an insurance and brokerage subsidiary, National Bankshares Financial Services, Inc. The company earns its revenues from interest and fees on loans, non-interest income, and investments.
Executives
Sanders Bobby D. Ii officer: SVP/Chief Credit Officer 1735 TURNBERRY LANE RINER VA 24149
Jones Lora M. officer: SVP/Chief Financial Officer 301 NEIL STREET BLACKSBURG VA 24060
Melton Rebecca M officer: SVP/Chief Credit Officer 260 REVOLUTION CIRCLE CHRISTIANSBURG VA 24073
Smith Mark Atom officer: SVP/Chief Credit Officer 5426 DOE RUN ROAD ROANOKE VA 24018
Mylum Paul M. officer: SVP/Chief Lending Officer 8537 WHISTLING STRAIGHTS DRIVE RADFORD VA 24141
Webb Julian Lewis Jr director 700 CAVE STREET NARROWS VA 24124
Ramsey Lara E other: Corporate Secretary 7479 BLUFF VIEW DRIVE RADFORD VA 24141
Thompson James Carroll director PO BOX 298 TAZEWLL VA 24651
Dye Michael E director PO BOX 346 BLUEFIELD VA 24605
Fitzwater Norman V Iii director 113 MATEER CIRCLE BLACKSBURG VA 24060
Johnson Mildred R director 914 WILLARD DRIVE BLACKSBURG VA 24060
Dooley John Elliott director 2131 PLANK DRIVE BLACKSBURG VA 24060
Green Charles E Iii director 15519 LOOKOUT RIDGE BRISTOL VA 24202
Skeens David K. officer: Treasurer 2130 CHILDRESS ROAD CHRISTIANSBURG VA 24073
Buchanan J. Robert officer: Treasurer 2248 UPPER VALLEY ROAD TAZEWELL VA 24651

National Bankshares Headlines

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