Oconee Federal Financial (Oconee Federal Financial) Beneish M-Score

: -3.55 (As of Today)

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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 -3.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OFED' s Beneish M-Score Range Over the Past 10 Years
Min: -8.11 Med: -2.56 Max: -1.84
Current: -3.55

During the past 13 years, the highest Beneish M-Score of Oconee Federal Financial was -1.84. The lowest was -8.11. And the median was -2.56.

Oconee Federal Financial 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 Oconee Federal Financial 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 * 1.1815

0.528 * 1

0.404 * 1.112

0.892 * 0.9506

0.115 * 1.9717

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9623

4.679 * -0.001597

0.327 * 5.1393

-3.55

* 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 (Sep23) TTM:

Last Year (Jun22) TTM:

Total Receivables was $1.59 Mil.
Revenue was 3.211 + 3.726 + 4.256 + 4.6 = $15.79 Mil.
Gross Profit was 3.211 + 3.726 + 4.256 + 4.6 = $15.79 Mil.
Total Current Assets was $132.08 Mil.
Total Assets was $592.20 Mil.
Property, Plant and Equipment(Net PPE) was $8.31 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.74 Mil.
Selling, General, & Admin. Expense(SGA) was $7.39 Mil.
Total Current Liabilities was $4.85 Mil.
Long-Term Debt & Capital Lease Obligation was $50.20 Mil.
Net Income was 0.312 + 0.628 + 1.096 + 1.339 = $3.38 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0 + 1.216 + 1.263 + 1.842 = $4.32 Mil.

Total Receivables was $1.41 Mil.
Revenue was 4.261 + 4.159 + 4.296 + 3.897 = $16.61 Mil.
Gross Profit was 4.261 + 4.159 + 4.296 + 3.897 = $16.61 Mil.
Total Current Assets was $162.44 Mil.
Total Assets was $544.79 Mil.
Property, Plant and Equipment(Net PPE) was $8.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.65 Mil.
Selling, General, & Admin. Expense(SGA) was $8.08 Mil.
Total Current Liabilities was $0.85 Mil.
Long-Term Debt & Capital Lease Obligation was $9.00 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)
	=	(1.586 / 15.793)	/	(1.412 / 16.613)
	=	0.100424	/	0.084994
	=	1.1815

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)
	=	(16.613 / 16.613)	/	(15.793 / 15.793)
	=	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 - (132.08 + 8.306) / 592.202)	/	(1 - (162.444 + 8.579) / 544.792)
	=	0.762942	/	0.686077
	=	1.112

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
	=	15.793	/	16.613
	=	0.9506

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))
	=	(1.645 / (1.645 + 8.579))	/	(0.738 / (0.738 + 8.306))
	=	0.160896	/	0.081601
	=	1.9717

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)
	=	(7.387 / 15.793)	/	(8.075 / 16.613)
	=	0.467739	/	0.486065
	=	0.9623

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)
	=	((50.2 + 4.845) / 592.202)	/	((9 + 0.853) / 544.792)
	=	0.09295	/	0.018086
	=	5.1393

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
	=	(3.375 - 0	-	4.321)	/	592.202
	=	-0.001597

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.

Oconee Federal Financial has a M-score of -3.55 suggests that the company is unlikely to be a manipulator.

Oconee Federal Financial Beneish M-Score Related Terms

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Oconee Federal Financial (Oconee Federal Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Oconee Federal Financial Corp (OTCPK:OFED) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

201 East North Second Street, Seneca, SC, USA, 29678

Website

https://www.oconeefederal.com

Oconee Federal Financial Corp is a United States-based stock holding company. The company through its subsidiaries provides banking products and services in the us states of South Carolina and Georgia. Its principal business activity involves attracting retail deposits from the public and investing those deposits, together with funds generated from operations, in one-to-four family residential mortgage loans and, to a lesser extent, non-residential mortgage, construction and land, agricultural, and other loans.

Executives

Curtis T Evatt	director, officer: EVP and CFO	C/O OCONEE FEDERAL SAVINGS AND LOAN, 201 E NORTH SECOND STREET, SENECA SC 29678
Charles Todd Latiff	officer: Senior Vice President	201 EAST NORTH SECOND STREET, SENECA SC 29678
David H Stafford	officer: SVP and COO	201 E. NORTH SECOND STREET, SENECA SC 29678
John William Hobbs	officer: SVP and CFO	6650 CALHOUN MEMORIAL HWY, EASLEY SC 29640
H Allen Salter	officer: SVP and CFO	C/O OCONEE FEDERAL FINANCIAL CORP., 201 EAST NORTH SECOND STREET, SENECA SC 29678
Sandifer Cecil T Jr.	director	C/O OCONEE FEDERAL SAVINGS AND LOAN, 201 E NORTH SECOND STREET, SENECA SC 29678
T. Rhett Evatt	director, officer: President and CEO	C/O OCONEE FEDERAL SAVINGS AND LOAN, 201 E NORTH SECOND STREET, SENECA SC 29678
Mays Harry B Jr.	director	C/O OCONEE FEDERAL SAVINGS AND LOAN, 201 E NORTH SECOND STREET, SENECA SC 29678
Mclellan Robert N Jr.	director	C/O OCONEE FEDERAL SAVINGS AND LOAN, 201 E NORTH SECOND STREET, SENECA SC 29678
W. Maurice Poore	director	C/O OCONEE FEDERAL SAVINGS AND LOAN, 201 E NORTH SECOND STREET, SENECA SC 29678
Nancy M Carter	officer: Senior VP and Asst. Treasurer	C/O OCONEE FEDERAL SAVINGS AND LOAN, 201 E NORTH SECOND STREET, SENECA SC 29678