National Security Group (National Security Group) Beneish M-Score : 0.00 (As of May. 14, 2024)

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What is National Security Group 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.

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

During the past 13 years, the highest Beneish M-Score of National Security Group was 0.00. The lowest was 0.00. And the median was 0.00.

National Security Group 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 Security Group 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 * 1.0062

0.528 * 1

0.404 * 1

0.892 * 0.9741

0.115 * 0.7466

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9529

4.679 * -0.020216

0.327 * 0.9775

-2.61

* 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 (Mar22) TTM:

Last Year (Mar21) TTM:

Total Receivables was $17.73 Mil.
Revenue was 16.233 + 16.984 + 16.671 + 16.243 = $66.13 Mil.
Gross Profit was 16.233 + 16.984 + 16.671 + 16.243 = $66.13 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $149.34 Mil.
Property, Plant and Equipment(Net PPE) was $1.53 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.34 Mil.
Selling, General, & Admin. Expense(SGA) was $9.48 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $12.69 Mil.
Net Income was 0.963 + 1.543 + -0.644 + -1.039 = $0.82 Mil.
Non Operating Income was 0.122 + 0.125 + 0.127 + 0.131 = $0.51 Mil.
Cash Flow from Operations was 3.131 + -0.119 + 0.599 + -0.274 = $3.34 Mil.

Total Receivables was $18.09 Mil.
Revenue was 16.312 + 16.986 + 17.765 + 16.824 = $67.89 Mil.
Gross Profit was 16.312 + 16.986 + 17.765 + 16.824 = $67.89 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $151.58 Mil.
Property, Plant and Equipment(Net PPE) was $1.55 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.24 Mil.
Selling, General, & Admin. Expense(SGA) was $10.21 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $13.18 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)
	=	(17.734 / 66.131)	/	(18.093 / 67.887)
	=	0.268165	/	0.266516
	=	1.0062

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)
	=	(67.887 / 67.887)	/	(66.131 / 66.131)
	=	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 + 1.525) / 149.339)	/	(1 - (0 + 1.551) / 151.575)
	=	0.989788	/	0.989767
	=	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
	=	66.131	/	67.887
	=	0.9741

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))
	=	(0.243 / (0.243 + 1.551))	/	(0.338 / (0.338 + 1.525))
	=	0.135452	/	0.181428
	=	0.7466

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)
	=	(9.476 / 66.131)	/	(10.208 / 67.887)
	=	0.143291	/	0.150368
	=	0.9529

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)
	=	((12.693 + 0) / 149.339)	/	((13.18 + 0) / 151.575)
	=	0.084995	/	0.086954
	=	0.9775

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
	=	(0.823 - 0.505	-	3.337)	/	149.339
	=	-0.020216

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 Security Group has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.

National Security Group Beneish M-Score Related Terms

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National Security Group (National Security Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » National Security Group Inc (NAS:NSEC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

661 East Davis Street, P.O. Box 703, Elba, AL, USA, 36323

Website

https://www.nationalsecuritygroup.com

National Security Group Inc is an insurance holding company. The company operates through two segments namely Property and casualty insurance, and Life insurance. Its Property and casualty segment primarily write personal lines dwelling coverage including dwelling fire and windstorm, homeowners and mobile homeowners lines of insurance and the company's Life insurance segment offers a basic line of life and health and accident insurance products in around seven states. Geographically, it operates in the region of the United States and derives most of the revenue from the Property and casualty insurance segment.

Executives

Fred Jr Clark	director	661 EAST DAVIS ELBA AL 36323
Andrew J. Abernathey	10 percent owner	3523 45TH STREET SOUTH SUITE 100 FARGO ND 58104
Brian R Mcleod	officer: Chief Financial Officer	661 EAST DAVIS ELBA AL 36323
Donald S Pittman	director	661 EAST DAVIS ELBA AL 36323
Charles B Arnold	director	2161 MILL GARDEN RUN BUFORD GA 30519
Elizabeth B Crawford	director	4100 CRESCENT ROAD BIRMINGHAM AL 35222
Carolyn E Brunson	10 percent owner	661 EAST DAVIS ELBA AL 36323
Meridian Investments, Llc	10 percent owner	819 30TH AVENUE SOUTH SUITE 206A MOORHEAD MN 56560
Brunson William L Jr	officer: Chief Executive Officer	661 EAST DAVIS ELBA AL 36323
Paul C Wesch	director	661 EAST DAVIS ELBA AL 36323
L Brunson White	director	661 EAST DAVIS ELBA AL 36323
Drayton Jr Nabers	director	605 RICHARD ARRINGTON JR BLVD N, BIRMINGHAM AL 35203-2707
O Neil Frank B	director
J R Brunson	director	661 EAST DAVIS ELBA AL 36323
Fleming G Brooks	director